Michael Gaughan's South Point Poker LLC made history Thursday as the first licensed casino in the U.S. to run a real money poker website in the state.
The Nevada Gaming Commission's unanimous five-member approval is unique in that it is not only the first in the U.S. but also does not rely on a third-party company that operates an online poker site. South Point Poker, which developed its own online poker system, is also licensed as an interactive game manufacturer and service provider.
"We are very excited to enter the online gaming world," said Lawrence Bourne, chief operating officer of South Point Poker. "This is an amazing step forward. It will redefine the game and what the state can do."
Vaughan said after final testing and regulatory approval that it is "optimistic that it will be released sometime in October." South Point Poker must submit its operational plan to the regulator before launching its physical money poker site.
"We've made our own cultivated products from the beginning to the regulations in Nevada," Vaughan said.
Also Thursday, Reno's Monarch Interactive Inc., whose investors control the Atlantis casino resort in northern Nevada, received an operator's license. In a third move, Global Cash Access Inc. received permission to provide online payment services.
Global Cash Access, which offers ATMs and credit services at offline casinos, will provide a way for South Point online poker players to buy and repay chips.
The company told commissioners it would only handle payments and play no role in the day-to-day operations of South Point poker.
Global Cash Access recently signed a deal with Live Gamer, an "online wallet" company that will help the Las Vegas-based company offer online deals.
Vaughan said South Point Poker itself will employ about 30 people. The casino company has been offering free games for months, but the software is not going to be used for actual games that cost money.
The committee took about 20 minutes to approve South Point. Gaughan attended the hearing, but did not speak.
The company's representatives received many questions from commissioners regarding player age identification, self-exclusion lists, handling issues, and prompt inquiries from customers and regulators. Vaughan told Commissioner John Moran Jr. that the company will keep a list of people it rejects and make it available to regulators and law enforcement.
Commissioner Tony Alamo said operations would be under the microscope because South Point would be the first. Vaughan has confirmed to commissioners that it has taken precautions to help the company handle large player inflows because it will be the first website to hit the market.
Chairman Peter Bernhard said, "We want to make sure it's done correctly because what you do can affect what others do later on."
Alamo said he hoped South Point poker would succeed and urged authorities to let him know if there was a problem.
Vaughan said the online poker system has at least 21 plays and is in Nevada and has safeguards to keep it out of cheating or money laundering.
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"We need to make sure that it's who you say it is," Vaughan said, "and we'll know if the person acting is the person who should be acting."
He said the website also has a system to deter problem gamblers, and customers can rule out their bets on the site.
South Point and Monarch Interactive are the fourth and fifth companies in Nevada to receive all kinds of interactive licenses, while they are the first casinos to secure online licenses.
Bali Technologies, IGT, and Shuffle Master were awarded interactive licenses earlier this year. More than 30 other companies, including Caesars Interactive Entertainment and MGM Resorts International, submitted applications to the Nevada Gaming Control Board.