Last week the NJ Division of Gaming Enforcement and the Kahnawake Gaming Commission announced a deal that, at least on paper, will make online gambling safer in the United States.
While this was initially viewed as a potential game changer for the industry, the two sites that this move would have primarily impacted decided to continue completely unlicensed.
KGC No Longer Offering Licenses in Unregulated Markets
On September 26, the Kahnawake Gaming Commission announced a change in policy that will impact license holders that operate in the United States. Per the release:
"After careful consideration, the Kahnawàke Gaming Commission (the “Commission”) has directed that an applicant or existing licensee that accepts players from a US State without being authorized by the US State to do so, is engaged in an activity that adversely affects Kahnawàke’s jurisdictional integrity or reputation (the “regulatory directive”).
"An application from an operator that engages in this activity will be denied. Existing licensees have been advised that, not later than September 30, 2016, they must modify their operations to conform to the Commission’s regulatory directive or their licenses will be terminated."
This change came after an investigation by the DGE into Continent 8, a NJ license holder that was exposed by the NY Times as providing services to Bovada.
The DGE had promised to prosecute Continent 8 if they found they knowingly provided services to an unregulated entity. Instead, it appears that the DGE worked closely with the KGC to get them to pull their license holders out of the United States.
When originally announced many assumed that this would mean that both Bovada and Ignition would stop offering services to the United States on October 1. However, that was not the case.
Bovada and Ignition Forfeit Licenses Following KGC Change
As reported by OnlinePokerReport.com, the KGC sent another release following their presser on their policy change announcing that both Bovada and Ignition no longer hold KGC licenses.
According to that presser, “Salmon River Technologies Limited (www.bovada.lv) and Lynton Limited (www.cafecasino.lv, www.slots.lv and www.ignitioncasino.eu) have both voluntarily terminated their Client Provider Authorizations.”
Bovada sold their online poker business to Ignition back in August and players confirmed that it was "business as usual" on October 1st. Bovada is still operating their casino and sports betting operations.
Both companies are now unlicensed but looking for licenses in other countries.
A "License" is Not the Same as Being Regulated
We should point out that even if Bovada and Ignition both acquire new licenses, this is not the same as operating under a regulatory system like that in Nevada or New Jersey.
In fact, there are many "regulators" out there that issue licenses that are basically not more valuable than the paper they're printed on.
While the recent move by the KGC was historic, it still doesn't overshadow the fact that they allowed sites to operate unregulated for a decade.
Playing on an unregulated site is still a risk, even if it is "licensed." Just look at Lock Poker, Full Tilt Poker and UB. They were all licensed but still went belly up and players went unpaid. And remember, UB was licensed by the KGC.