Bally executive does not expect federal online poker soon

Reid's efforts haven't produced any publicly circulated drafts of a bill or any proposals since late 2010. Caesars Entertainment and other casino companies have lobbied for federal legislation to regulate online poker and to allow states to opt out if they choose.

Connelly said the gridlock in Congress would be an "obstacle moving forward." He said legalizing online gaming is moving forward on a state-by-state basis. Nevada was the first state to adopt rules allowing companies to apply for licenses to operate poker websites in the state.

According to the regulations, companies with Nevada licenses would have the new title attached to their licenses; companies new to Nevada would be vetted with full licensing investigations, which usually take months.

Licensed gaming companies seeking online poker license will have to prove that their technology will be able to limit play to state residents of legal age. Online poker sites are also required to establish procedures to detect money laundering, fraud or other criminal activities, and to establish a cushy reserve to complement money deposited by customers in their accounts. "We hope to see the first licenses by June in Nevada," Connelly said.

He said California, Iowa and Mississippi were just a few of the states with legislation legalizing online poker. Connelly said a state-by-state approach raises challenges for online poker, especially in terms of liquidity.

He said intrastate gaming is available to players in one time zone, instead of three. "Also, the cost to maintain these players is increasing," Connelly told casino executives, government regulators and others during a panel discussion about the future of online gaming at iGaming North America.

The conference addressing all aspects of Internet gaming was held March 4 to 6 at Planet Hollywood Resort & Casino. Panels assessed the economic impact of a regulated online gaming market, effective strategies for social media and an overview of the industry.

Connelly said hand-held and mobile devices are other distribution channels to generate online gaming revenue. He said 400,000 iPhones and 850,000 Android smartphones were being sold each day worldwide. "The evolution of (Internet) gaming is with handheld and mobile devices, not personal computers," Connelly said.