Yahoo! Closes Online Gambling Portal Over Security Concerns

Yahoo! announced that it had launched a play money online gambling platform early last month. Many experts speculated that Yahoo! might begin allowing players to compete for real money in Nevada, New Jersey, Delaware and other states that plan to legalize online gambling. Online gambling pundits were taken aback when Yahoo! announced that it was shutting the site down due to security concerns.

Yahoo! said that technological changes and increased security requirements have made it impossible to continue offering Texas Hold’em.  The company said that it plans to improve technology and security protocols to offer a new line of online gambling options in the near future. It may also reoffer Texas Hold’Em if the problems can be resolved.

While industry observers are confident that Yahoo! will resume offering online gambling in the future, they are also shocked that the company pulled the plug on Texas Hold’Em. Yahoo! invested a substantial amount of time and money implementing its online gambling platform. Nobody expected it to close its platform less than a month after opening it.

Yahoo! will also need to respond to player requests for enhanced security and attractive prize pools. Yahoo! hasn’t indicated what prizes it may offer in the future, but it will need to brainstorm options if it hopes to draw players to its site.

However, those prizes will also need to be compliant with federal and state online gambling laws. Some state laws are ambiguous on the merits of offering prizes to people that don’t pay a buy-in fee, which could create some challenges. Yahoo! may need to exclude players from certain jurisdictions from receiving prizes.