April 1, 2007 — In yet another demonstration that a law’s passage can result in unforeseen consequences, the passage of the UIGEA has generated new opportunities for online poker within the borders of the United States.
The UIGEA, signed into law on October 13, 2006, specifically exempted internet bets and wagers that are made within the lands of a Native American nation or between two nations. This carve out represents a heralded opportunity for those Indian reservations that have not, as yet, been able to navigate their way through the barriers of entry for B&M casinos; an opportunity that the Michigan Manajiwin Nation is already capitalizing on.
While a number of Indian reservations provide resources for online poker companies, like the Kahnawake Mohawk reservation in Canada, most of these are dedicated server hosting facilities. The Manajiwin tribe may be the first tribe to offer both in-house and networked facilities geared toward the online poker consumer.
“We had been monitoring the progress of this bill with interest,” said Manajiwin tribal elder Jim Smallwood. “We realized that this bill had the potential to fuel economic development within our community and provide good paying technical and service jobs.”
The Manajiwin will not only be acquiring a skin from a reputable online poker provider, but they are also contracting for the software development to enable cashier, or backend, services to be performed on location. “It would seem,” said Smallwood “that we can offer a completely legal gaming service without the prohibitive expense of building a casino. Any small bingo hall can be easily converted to completely legal online gaming center.”
While the Manajiwin have not disclosed their online partner, a number of internet gaming providers are watching the Native American online gaming space. On October 16, 2006, Atlantis Internet Group Corporation (ATIG.PK) issued a press release announcing it had recently formed a joint venture to pursue hosting internet gaming from an Indian Reservation and had held several formal meetings with a large Indian Nation. “Where many see a bleak future we see opportunity; with an estimated 60% of the Six Billion Dollars made in Internet Gaming coming from the United States now cutoff to offshore Internet Gaming companies, that creates a potential Four Billion Dollars U.S. Internet Gaming market,” said ATIG President Donald L. Bailey. And clearly some of the publicly traded online gaming companies that hastily vacated the US with the UIGEA’s passage are now pondering whether the Indian exemption might not just be their passport back.
The Manajiwins already have plans in place for a large WiFi café located on tribal land near the populous suburbs of Detroit, as well as an upscale hostel facility for short-term visitors and travelers. “We are currently in talks with a developer for either a condo or time share complex, but that’s not on the front burner yet.”
The Manajiwins have spoken to a number of tribes across the US, offering them affiliate status to what would amount to a national reservation network to the online poker site. “We would like to offer this to every Indian Nation who found themselves in our situation,” Smallwood said, “but its initial scope will have to be more limited; both because of anticipated server demand and because many Indian Nations don’t meet IGRA guidelines.”
Because the UIGEA still defers to the Indian Gaming Regulatory Act, the Manajiwins are only negotiating with tribes that are located within states that already allow poker within their boundaries. “At least for now the IGRA allows the various tribes to operate all games that are also licensed to non-Indian businesses within each state. Should that change in the future, we would certainly look to expand this new enterprise.”
Manajiwin spokesmen believe they will have their first connectivity available to the public by early July.