Regulating Publicly Traded Online Poker Companies
Internet poker regulation is conducted through different commissions and a few governments of countries where the headquarters are located. The three big commissions are the Kahnawake Gambling Commission, the Gambling Commission of Great Britain, and the Isle of Man Gambling Control Commission. A few governments play a role in regulating online poker as well, including Gibraltar where many of the online poker operators make their headquarters mainly because of the generous tax laws on gambling. In fact, Gibraltar only charges a 1% tax on gaming operations with a minimum of $150,000 and a maximum of $750,000 total tax paid. Another location for online poker rooms is the very relaxed Costa Rica, which does virtually no regulation at all once you have obtained an easy to obtain business license. Often times the small Caribbean country of Antigua is mentioned with regards to internet poker regulations because it won a landmark World Trade Organization (WTO) judgement against the United States. That 2005 judgement ruled the US law which made online betting illegal violated international law and therefore was not enforceable. However, the US continues to pick and choose which WTO rulings it will follow and this one they have ignored.
The Kahnawake Gambling Commission is probably the best known of the gaming commissions, mostly because of the recent publicity that the Absolute Poker cheating scandal brought to it. In the summer of 1996, the Kahnawake Mohawk Territory near Montreal, Canada established the Kahnawake Gaming Commission to license and regulate gambling activities including the poker and casino companies who were using the Kahnawake Indian Tribe's computer servers.
Kahnawake Gaming Commission regulates gaming activities based on three ideas. The first is "That only suitable persons and entities are permitted to operate" meaning that the gaming companies must be legitimate and approved by the Commission. The second is "That the games offered are fair to the player" meaning players shall not be cheated in anyway including that there should be no corruption within the management or unfair games. The final principle is "That winners are paid" meaning that an operator must always have the funds available to pay out to the winning players. The Commission does background checks on all applicants, conducts audits regularly of those operating, and offers other support to the online businesses it regulates. Most of the powerhouse online poker rooms have been granted licenses such as Pokarstars, Paradise Poker, PokerRoom, and UltimateBet. The Commission also conducted the investigation into the Absolute Poker cheating scandal in which two top level management Scott Tom and were using a super user account that could see all opponents cards to cheat players out of nearly $1 million dollars.
The Gambling Commission of Great Britain was formed after British Parliament passed the Gaming Control Act of 2005. This Act is the first step for the UK to regulate online gambling, covering everything except the National Lottery and spread betting. The objectives of the Commission are to prevent gambling from being a source of crime or disorder, ensuring that gambling is conducted in a fair and open way, and to protect children and other vulnerable persons from being harmed. The Commission has just begun regulating with its duties being increased over time, and most of the online poker rooms which it will govern are in the application process.
The Isle of Man Gambling Control Commission, based in a small island territory off the coast of the United Kingdom, has become a small player in the internet gambling regulating business including being responsible for the largest online poker room, Pokerstars. The nation has actively pursued companies to locate there with very lenient tax laws and incentives, especially for high tech companies. Under the 2001 Online Gambling Regulation Act the Isle of Man has aimed its focus at regulating the online gambling market to make it free of crime, protect those that need protecting, fair gaming practices, and that winnings should always be paid out. In general they say that "A well regulated gaming industry serves the best interests of all involved" meaning the player, the operator, and the Gaming Control Commission. The Commission has measures in place that protect the players, such as the mandatory independent testing of gaming software. Pokerstars is their best known client.
Online Poker Stock Prices
Stock Exchanges
This list shows the online poker rooms' trading symbols for each stock exchange. Click on the stock exchange to go directly to the current trading price.
World Poker TourNASDAQ:WPTE
Party Gaming
London Stock Exchange:PRTY
CryptoLogic
NASDAQ:CRYP
Toronto Stock Exchange:CRY
London Stock Exchange:CRP
Sporting Bet
London Stock Exchange:SBT
888 Holdings
London Stock Exchange:888
Ladbrokes
London Stock Exchange:LAD
William Hill
London Stock Exchange:WMH
bWin
Vienna Stock Market:BWIN
Boss Media
Nordic Exchange:BOSS
Online Poker Regulation in the United States
The United States does not regulate internet poker at the current time. The near future will probably change that. Many of the large brick and mortar casinos like Harrah's and MGM felt threatened by the online poker industry that they were not a part of and lobbied hard to have it taken away. They nearly got what they wished for with the UIGEA, but because the private poker rooms did not follow the Act online poker survived. Ideally, these casino giants will also become part of the internet poker industry adding their brand strength to their respective sites while being regulated by the United States.