Jackie Gaughan celebrates his 89th birthday at the El Cortez with showgirls and an Elvis Presley impersonator on Oct. Gaughan is the son and namesake of the owner of the South Point. South Point Hotel & Casino owner Michael Gaughan discusses his decision to return to entrepreneurial operations and the intricacies of the Las Vegas locals market. You’re now solely operating South Point, one of the locals casino properties in Las Vegas you envisioned and helped build when you led Coast Casinos before selling the company to.

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The owner of the South Point Hotel and Casino in Las Vegas, Michael Gaughan, has come out in favor of pending legislation in the Nevada Assembly that would open the first regulated and licensed online poker market in the United States. By making this pronouncement, Gaughan became the first major casino owner to support the legislation in question.

The move by Gaughan comes as a surprise to those in favor of Assembly Bill 258, the legislation proposed by William Horne (D-34th District). The legislation was proposed by Horne back on March 10th and is scheduled for its first hearing in front of the Committee on Judiciary at 8:00am tomorrow. The bill would “enact provisions governing the licensing and operation of internet poker” inside Nevada’s borders and assist the state in curbing a budget shortfall expected to reach $1 billion.

Gaughan cited many reasons for backing the legislation. He believes that passage of AB 258 will enable the state of Nevada to reverse the shortfalls in the budget and curb double-digit unemployment.

Perhaps more important to a businessman such as Gaughan is the opportunity for the state to take the lead when it comes to regulating the online poker industry. “There is no doubt in my mind that online poker and other games are coming,” said Gaughan. “AB 258 would make us a pioneer in the nationwide movement and the leader for the rest of the country to emulate.”

AB 258 is supported by PokerStars and there is language in the bill that would allow companies that have continued to accept American players in alleged violation of the Unlawful Internet Gambling Enforcement Act. Sites like as PokerStars, Full Tilt Poker, and Cake Poker would be eligible to apply for licenses, something that was a major sticking point in recent Federal legislation regarding legalizing and regulating online gaming.

Other text in AB 258 shows how relatively easy it would be for the state of Nevada to set up a regulatory and licensing format. Information provided by the Nevada Gaming Commission shows that, if the bill were passed, it would cost approximately $831,000 to implement the regulatory mechanics. The taxes and regulatory fees that the state’s regulatory agency would collect should, in all likelihood, vastly outweigh these costs.

Other casino owners have not been as quick to embrace AB 258, however. In an article in the Reno Gazette-Journal that appeared shortly after the measure was introduced, Caesars Entertainment – the owners of the World Series of Poker and a multitude of casinos in Las Vegas – came out as staunch opponents of the proposed bill. Jan Jones, Caesars Entertainment Senior Vice President for Communications and Public Relations, stated at that time that the proposed bill was the wrong way to approach the legalization of online poker.

“Our focus is not intrastate, our focus is interstate,” Jones is quoted as saying. “It’s Federal, it’s putting together an American law, an appropriate regulation and licensing regime and taking the jobs and revenues going to foreign companies and bringing it back to America. The internet, by its nature, is an interstate activity, and the rules should be crafted appropriately.”

Also against AB 258 is MGM Resorts International, the ownership group behind such popular casinos as the Bellagio, CityCenter, and Mirage in Las Vegas. An MGM spokesperson told the Wall Street Journal, “You have one company [PokerStars] trying to impose a business model on legislation. We have to eliminate illegal online gambling and crack down on foreign operators that don’t comply with Federal law.”

South Point Casino Ownership Report

Tomorrow morning’s meeting of the Committee on Judiciary in the Nevada legislature will be a pivotal point on the future of online gaming in the state. We’ll keep you posted.