Online Gambling Surges Ahead
Published: Friday, February 25, 2005 Online-Casinos.com
ONLINE GAMBLING SURGES AHEAD
Bullish article from USA Today
The
USA Today mainstream newspaper carried a bullish article on Internet gambling
today under the intro "online gambling has hit the jackpot."
The
story reports that after years of escalating growth, the industry is poised for
its biggest year yet despite legislative and commercial attempts to shut it down
in the USA. Among other factors, this reflects a growing obsession with poker,
advances in broadband and wireless technology, and the temptation to strike it
rich from a computer.
More than 2,000 gambling Web sites this year will
rake in nearly $10 billion in revenue, most from U.S. consumers, claims the piece.
That's up 40 percent from 2004 and makes gambling one of the Net's largest moneymakers.
Poker revenue is expected to double to more than $2 billion and attract
1 million players a month. Americans play at 266 Web sites, up from 53 in June
2003, the newspaper quotes gaming site CasinoCity as publishing.
"Poker
has jolted the industry," said Mike Sexton, who consults for PartyPoker,
which is expected to haul in $1 billion in revenue this year. "Playing poker
is a skill and considered cool. It's acceptable whether you're sitting around
a table with friends or in front of a PC."
Technology and TV are
paving the way. Peer-to-peer technology lets players compete head-to-head over
the Internet in real time. Matches on ESPN, Bravo and the Travel Channel draw
solid ratings. The popularity of poker, in turn, has further legitimized an industry
once considered taboo by squeamish bettors.
"The fear factor is largely
going away," said Alex Czajkowski, marketing director for Sportsbook.com.
"The bigger, more reputable online casinos are not going to rip you off,
and more people are betting."
That has meant more business for virtual
slot machines, bingo and
roulette. At the same time,
advances in wireless technology make it easier for consumers to place wagers from
cellphones or PDAs.
Almost all gambling sites are offshore, where they
are immune from U.S. law. Federal and state officials have discouraged some banks
from allowing their credit cards to be used for cyberwagers.
The federal
1961 Wire Act prohibits the use of phone lines for placing bets, but there is
no national law that applies to Internet gambling.
Sen. Jon Kyl, R-Ariz.,
who has spearheaded efforts to crack down on Internet gambling since 1996, says
he might try again this year.
