Nevada Shares Public Comments Received for Online Poker Interstate Agreements

Party Casino Party PokerThis week, the Nevada Gaming Commission (NGC) made accessible to the public the comments or suggestions received in the ongoing public consultation for drafting the state’s interstate agreement for online poker. The most notable are the inputs submitted by the Alderney Gambling Control Commission (AGCC) as the latter aims to provide answers to the issues raised by the NGC.

One of the issues posed by NGC is the matter of determining whether the location of the player or the location of the licensed operator will serve as basis for calculating revenue sharing between compacting states.  The AGCC recommends for Nevada to first, make a distinction between the networks of multiple licensees connected to the operator of a single platform and the revenues linked to their consortium.  Other forms of direct taxes apply to consortium revenues, as determined by the jurisdiction that regulates the different licensees.

AGCC gives further insights about online gaming revenues, as these comprise income directly derived by licensees from offering online gaming facilities, and income indirectly derived from the related wagering activities of online players. Inasmuch as the gaming authority in which the servers are located, monitor and regulate the activities and earnings of the Internet-based gaming site, said jurisdiction determines the location of the direct and indirect taxable profits subject to revenue sharing.

AGCC also cited processes in settling player disputes, in which best practices observed outside the U.S. include an agreement between the player and the operator that the latter will initiate actions to settle such disputes. The regulatory body, which governs and supervises the operator, will act as arbiter in an appeal process in the event that a player is not satisfied with the operator’s resolution.

The AGCC likewise suggests for Nevada to consider amending its online gambling laws to include compacts with other jurisdictions outside of the U.S.