'Let's Study Online Gambling', Says A.G.A.
Published: Friday, April 28, 2006 Online-Casinos.com
'LET'S STUDY ONLINE GAMBLING', SAYS A.G.A.
Key land casino body - American Gaming Association - changes stance on online gambling
Many online gambling industry observers were caught by surprise this week when the American Gaming Association, which represents the interests of US land gambling companies, turned away from its traditionally neutral stance on online gambling in favour of a more rational investigative approach.
The president of the Association said it now strongly supports the creation of a U.S. Congressional commission to evaluate whether online gambling should banned or not in the country.
The AGA's president and Chief Executive, Frank Fahrenkopf Jr., said that at a board meeting on Wednesday, it had decided it "strongly supports the creation of a one-year Congressional study commission that would evaluate the impacts of online gambling."
The AGA "...remains neutral on all pending legislation on this issue," which includes bills that would make Internet gambling a criminal offense in the U.S. The shift has the potential to positively impact on current moves to ban Internet gambling in the States, and the findings of an independent investigation are likely to be highly influential on legislative thinking. A positive outcome could ultimately see big name, trusted American casino brands entering a US-regulated domestic online gambling sector.
The commission should take into account issues such as "...how best to protect children and problem gamblers to whether Internet gambling can be effectively legalized and regulated in the United States rather than leaving bettors to fend for themselves on illegal, unregulated offshore sites," in its enquiries, said Fahrenkopf.
"The study also should include consideration of recent WTO rulings indicating the United States' position on Internet gaming may be in violation of international trade obligations."
The impact of the announcement was felt almost immediately on the London Stock Exchange, where Party Gaming shares perked up noticeably in a falling market. Analyst attributed this to an easing of fears over a possible U.S. ban. The AGA's move was thought to represent a softening of its stance.
Although UK analysts have frequently suggested that the US is unlikely to ban online gaming, the shares of gaming groups have been increasingly volatile amid the uncertainty.
Statement by Frank J. Fahrenkopf, Jr., President and CEO of the American Gaming Association
Re: AGA Board of Directors Modify Legislative Position on Internet Gambling
At an American Gaming Association (AGA) board meeting on Wednesday, April 26, the AGA modified its legislative position on Internet gambling. While it remains neutral on all pending legislation on this issue, including bills advocated by Reps. Jim Leach (R-IA) and Bob Goodlatte (R- V A), and Sen. Jon Leach (R-AZ), the AGA board now strongly supports the creation of a one-year Congressional study commission that would evaluate the impacts of online gambling.
"Millions of Americans currently gamble online, and they will continue to do so. Many nations, including Great Britain, are in the process of legalising, regulating and taxing online gambling. The AGA board thinks a comprehensive study commission should take into account policy issues ranging from how best to protect children and problem gamblers to whether Internet gambling can be effectively legalized and regulated in the United States, rather than leaving bettors to fend for themselves on illegal, unregulated offshore sites. The study should also include consideration of recent WTO rulings indicating the United States position on Internet gaming may be in violation of international trade obligations.
Such a commission could evaluate whether legalization, regulation and taxation, on a state-option basis, may be a more viable option than a complete ban on Internet gambling, and would report back to Congress on its recommendations as to the best way to deal with the issue.
