7.8 Million Americans Can't Be Wrong

Published: Thursday, February 09, 2006 Online-Casinos.com

7.8 MILLION AMERICANS CAN'T BE WRONG

Impressive numbers quoted by legal publication, but are they on the light side?

The Legal Times published some interesting but probably understated figures for online gambling this week in an article that examined the frustrating legislative climate in the USA, which still dominates the player market.

The article opined that: "Although online gambling is illegal in the United States, you'd never know it by looking at the numbers. Last year alone 7.8 million Americans logged on to Internet gambling sites. And with the online gambling industry banking almost $12 billion in revenue in 2005, some U.S. [land] casinos think the time has come to legalise Internet gambling and cash in - a position that was considered all but unthinkable until recently."

Unfortunately the author does not source his statistics, and although the financial number pretty much gels with research from respected statistics firm CCA, those numbers of players look a little on the light side when considered in the context of the millions of players on the databases of major online casino and poker room companies.

The author goes on to outline the current political moves to hamper or ban the industry in the States (see earlier InfoPowa reports on the latest Kyl-Leach moves) saying that these could potentially force U.S. casinos to stay off-line permanently.

The conclusion is that the chances of the gaming industry pushing through favorable online gambling legislation in the near term are slim, especially if the powerful AGA (American Gaming Association) fails to come out in support of such a measure.

The piece had an interesting corollary in a story in the Thoroughbred Times, a journal for the U.S. horseracing industry that has long opposed online gambling.

Reporting on an address to the delegates at the 4th quaderrenial Racing Congress by MGM-Mirage Inc. Chairman Terry Lanni, the Times quoted him as saying that gaming companies and racetracks should work together to legalise more forms of Internet gaming.

Currently, only pari-mutuel racing is exempt from a law that prohibits gambling on the Internet.

Lanni delivered his remarks during the opening day general session of the Thoroughbred Racing Association and Harness Tracks of America joint annual meeting this week at the Bellagio in Las Vegas.

"Online gaming is a multibillion dollar industry, and it's ridiculous we can't be part of that," Lanni said. "We should be able to utilise our brands - racetracks and casinos - to give people confidence to wager online."

Lanni cited a poll that indicated more than 60 percent of people have at least some concern regarding whether they will receive payment from offshore wagering sites on winning wagers.

"That's the best business to be in," Lanni said. "You have people willing to pay even though they think they have to win twice: once with the bet and once regarding concern if you'll pay them."

Offshore gaming companies are not just the scourge of racetracks, either, as Lanni offered statistics showing that Americans wager a staggering amount of money on sports.

Americans can make a legal wager on a sporting event only in Nevada, where about $94.5-million was bet on this year's Super Bowl compared to an estimated $1-billion offshore.

"Party Gaming admits that Americans wager on its site and that a significant portion of its revenue comes from those who shouldn't be using the site," Lanni said.

"You have people volunteering to pay a tax, and the government won't go for it; it's a farce."

Lanni said that despite the differences in the types of players who play the various games, casinos and racetracks have much in common because in the current entertainment age, both industries must rely on avenues other than gaming to keep the customer happy.

Las Vegas casinos used to count on gaming to bring in up to 80 percent of its revenue. That figure at the MGM-Mirage properties is closer to 42 percent, and at the ultra-luxurious Bellagio the figure is closer to just 25 percent.