One of the hot topics in recent days is the introduction of Nevada Senate Bill 40, which was pre-filed on December 20 and “would prohibit [and] criminalize player-to-player staking for brick-and-mortar poker tournaments, among other activities,” according to an industry legal rep.

Steve McLoughlin (pictured) from Max Value Software, the company that owns PokerTracker and Hold’em Manager, reminded PocketFives, “It’s important to remember while discussing this bill that the word ‘poker’ never appeared in the UIGEA, yet that law was applicable to online poker. SB 40 shares the same risks if passed as-is.”

According to McLoughlin, the bill could destroy the ability for the plumber from Illinois who gathered small investments from his friends to help him achieve his personal goal of playing in the WSOP Main Event and potentially cripple big-time events in Las Vegas. This bill has the potential to affect everyone in poker because the resulting effects would be far-reaching across the entire poker economy.

The bill’s language outlaws “accepting or facilitating a bet or wager on the result of any race, sporting event, or future contingent event, without required gaming licenses.” It’s primarily targeted at sports betting, but as McLoughlin pointed out, could easily be applied to poker in a similar fashion as the UIGEA.

McLoughlin added, “The issue is that the phrase ‘future contingent event’ needs to be clarified to make sure it does not apply to poker or to make sure the phrase only applies to sports wagering and nothing else. The DOJ recently separated online poker from sporting events under the Wire Act. SB 40’s language is very similar and vaguely similar. If this bill became law, a judge or prosecutor could have the ability to apply the phrase ‘future contingent event’ as he sees fit. By lobbying to modify the language of the bill, we may be able to remove the vagueness of the bill’s language once it becomes law.”

Those who trample on SB 40, were it to become law, would be facing a Category B felony in Nevada, a change many poker players would rather avoid at all costs. McLoughlin explained, “It is unlikely that four guys from California who decided to chip in to sponsor a friend at the WSOP will be prosecuted, but if that friend wins the Main Event, he will have to take 100% of the tax liability and not share the winnings with his former partners or risk prosecution. The bill hurts the little guys with big dreams far more than it potentially can hurt poker pros.”

A person found violating the bill, if passed, would be subject to afine of up to $5,000 and/or a minimum jail term of one yearwith a maximum of five years.

According to McLoughlin, the bill’s effects could extend well beyond poker: “The bill is clearly aimed at sports book runners, aka mules, but it also appears to be written in a way to have the greatest flexibility of application. It may even apply to daily fantasy sports as written, if a court of law allows that application to occur.” Prop bettors and friendly wagers could also come under SB 40’s domain if it becomes law.

As McLoughlin, who lives in Nevada, summed up, “It’s time to sound the alarm. The most important thing is that the bill hasn’t been read in committee yet; now is the time to propose revisions. That’s why it’s important we educate players now. The odds of this bill getting passed are near 100% because the bill appears to have been introduced by Nevada’s gaming regulators in partnership with the US Treasury Department and the American Gaming Association. It’s rare that a bill with that pedigree does not receive high priority.”

“As a community, regardless of our personal opinions on staking, our goal should be to change the wording of the bill to assure that there are no unintended consequences in the bill’s language that can be misinterpreted; the vagueness must be removed;” McLouglin said. “It’s highly unlikely that the sports betting component of the bill will be altered, but I do believe that if enough players are vocal in their opposition, then we may be able to protect poker players from being unfairly targeted.”

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