Is Online Gambling On The Cards For US Giants?
Published: Tuesday, October 03, 2006 Online-Casinos.com
IS ONLINE GAMBLING ON THE CARDS FOR U.S. GIANTS?
AGA does not believe the new US law eliminates the possibility for U.S.-based casinos to open online sites.
Speculation is building that the major American land casino companies have not been discouraged from online ambitions by the recent moves to curb online gambling financial transactions by US players.
Certainly a share of the $13 billion global market for online gambling, with some $6 billion thought to emanate from US gamblers, could be a tempting plum if non-American offshore companies continue to back away from the US player and US politicians can be brought into line.
Provisions that were not included in Senator Frist's last minute legislative ambush over the weekend (see previous Online-Casinos.com/InfoPowa reports) could actually encourage hope, because it does not explicitly outlaw betting on online casino-style games, such as poker and blackjack. The bill does bar financial institutions from accepting "illegal" bets, leaving the question unanswered as to whether some forms of online gambling are permitted. To date, sports betting is one of the only forms of gambling explicitly outlawed.
The American Gaming Association, which lobbies for the U.S. land casino industry, took a neutral stance on the bill, even though several prominent members, such as MGM Mirage, have said they would like to start online sites.
AGA president and CEO Frank Fahrenkopf is quoted as saying that his organisation does not believe the act eliminates the possibility for American casinos to open online sites, regulated by individual states or the federal government, in the future. "This bill did not make anything legal or illegal," says Fahrenkopf. "What it did was affect the mechanism by which Internet gambling takes place…and there is some question as to whether or not that will be effective."
The AGA has expressed support for the idea of a bi-partisan congressional commission to study and report on Internet gambling, something that has been proposed by both Rep. Connors and more recently by Jon Porter, a Nevada Congressman who introduced such a proposal in May.
The idea would be that such a commission would study whether online gambling sites, run by U.S. companies, could be effectively regulated. Fahrenkopf believes that bill is likely to be considered early next year. The measure is backed by the land casino industry in the States and continues to gather support.
"It is still Congressman Porter's intention to move ahead with this bill," says Trevor Kolego, the congressman's legislative director. "We hope to pass it, if not by the end of this session, then next session."
