More Action Regarding Online Poker in the US

MGM Resorts International and Boyd Gaming gear up for potential legalization The online gambling market in the United States has always been attractive to operators, especially now when the legalization of online poker is in sight. Reports arrived on Nov. 1 that two new land casino operators, MGM Resorts International and Boyd Gaming Corp. have joined the overall pre-legalization frenzy and closed a deal with bwin.party interactive's online poker operations in a partnership that will go live if internet poker gets legalized in the USA. Based on the deal, the three companies will take a stake in a new entity that would operate online gambling under the famous Party Poker and other brands. This would be a major comeback to the market for the company, which suffered significant losses when it stopped taking the US action in light of the UIGEA provisions. According to bwin.party's co-CEO, Jim Ryan, his company did the right thing exiting the US: "Did we sit back and watch in envy and knowing full well that we (had) had 50 percent of the market at that point? Perhaps, but we never questioned our decision." Regarding the new deal, he commented: "We have been putting in place the foundation, if you will, to re-enter the market," adding that the new business' player pool will be big enough to make the business profitable. In addition, the deal includes a provision, according to which MGM Resorts and Boyd will use bwin.party software to run online poker sites under their own brands. It has been stated by MGM Resorts CEO Jim Murren that the legalization of online poker would have to involve strict provisions, because companies that now offer poker online to Americans have hurt the entire gambling industry's reputation. "Whenever there's a problem anywhere, it reflects poorly on the gaming industry, of which we are a major player," he added. "The federal government needs to address this. It cannot wish it away." Finally, Boyd CEO Keith Smith expressed belief that the crucial thing is the companies'fast reaction if the law changes, in order to position well in the market whose value has been estimated at $6 billion.