Internet Gambling Ban Being Eyeballed
- By: grasshopper [privmsg] On 16th Nov 2006 In
Terry Lanni, CEO of MGM Mirage, said the recent Internet gambling ban is "ridiculous" in speaking to gambling officials attending the Global Gaming Expo in Las Vegas yesterday. He pointed out that it was passed because it was piggy-backed onto a port security bill, and exempted horse races, lotteries, and online bets placed while on American Indian reservations. He continued by saying it was an example of "the Republican Party pandering to the religious right."
Lanni is counting on the recent power shift in Washington D.C. to help him fight this legislation:
"We think [Internet gambling] can be taxed, we think it can be regulated, we think it can be licensed. With the new leadership, with the Democrats winning the House and the Senate, we think we're going to have a much better opportunity to do that."
Professor I. Nelson Rose of Whittier Law School had this to add:
"It's a public embarrassment. ... it's a mess. Eventually I think they'll get Congress to change the law to do for Internet poker exactly what they did for Internet horse racing. It's an exemption but (based on) states' rights."
This is what the brick and
This is what the brick and mortar casinos had in mind all along. They wanted the ban to shake out the entrenched online players. They will wait 9 months or more for all those sites to exit the US market, then have the bann lifted and give out licenses slowly - first to the casinos in vegas.
HOO-AH! ...and so it begins...
IIRC, back when The Isle of Man went gambling-friendly, MGM was the first North American gaming company to contact them and set up a presences on the tiny island.
It wouldn't shock me at all to see the big land-based gaming corps follow the route SBH is suggesting. They've got pockets deeper than even the biggest online players in the market, and really, who wouldn't gamble at www.caesars.com over some offshore spot?
They'd slide to the top of the heap in a hurry on brand recognition alone.
Heck, it might even benefit the current crop of top tier online companies - it could set up some interesting buy-out situations if the land-based folks decide to fast-track their own efforts.
Just think of the cross-sellign potential you'd have as a brand name on the strip, that bought one of the top three online betting companies right now. Thousands of active gamblers in a database that you could drive to your own properties on the strip - it'd become an even more insular vertical than it already is - truly "the gambling lifestyle" - gamble with them at home, take a vacation and gamble with them in Vegas. The rewards programs would transfer over easily, so play from your den would count towards comp nights, event tickets, etc. I suspect Las Vegas, overall, would welcome a shift allowing the land-based operators to get into the action online.
Now, the fact that reservation-based gambling is to be exempt simply means those savvy enough to do so will erect wifi-enable Starbucks outlets and provide plenty of bandwitdh for you to use while gambing at www.foxwoods.com and sipping a latte.
Admittedly, while I'm Canadian and this might seem like I'm taking pot-shots at my southern neighbors, WTF is it with the government in the US anyway? I read last night there's a move afoot to review COPA and some folks want a total ban (for US citizens) on porn...LOL Oh yeah, that'll happen.
I mean really - these laws are being pushed through by people from two generations ago. Their legacy, besides a few mill in their own pockets is to screw with as many people as possible - I'm convinced of that. I mean, you have folks in their 80s deciding policy and law that affects those living now in their 20s - the generation gap is real and in effect in the US, sadly.
Eventually they'll get a clue and when the population in the US wakes up and takes notice of how much money would be made regulating the industry, they'll force changes - it's still up to the voters after all...and voters have kids...that need educations. Now, I wonder where the money to properly fund the education system could come from...? Hmmm...
..
?SEOBlackhat hit the nail on the nail on the head.
This whole thing with this new anti-online gambling law is all about wiping out competition.
Of course the “Religious” and “Moral” arguments were used to justify this law, but they were just used and were not the real true motivation behind this Law.
The smart money people know - The day that bill was signed - Harrah’s Casino group stock gained about 35% (I did not look at MGM's stock, but I'll bet it went up too.) at the same time ALL the online gambling stocks in the London Stock Market lost over half their value, a total of about 500 Billion... lost over night... The online casinos stock in the London Stock Market continues to lose value at an astounding rate...
This new US anti online gambling law was not about religion or keeping children away from online gambling it was all about wiping out competition...
The AGA (americangaming.org) represents and lobbies Congress on behalf of land based casinos inside the US (like Harrah’s and MGM). The AGA has historically been very outspoken in their opposition to online casino gambling.... until just a few days ago when the AGA announced that... Online Casino Gambling ‘should be’ legalized and regulated inside the US...
The AGA along with many big names in US Land Based Casino industry, like Terry Lanni and Gary Loveman, are now voicing their support for legalized and regulated Online Casino Gambling inside the US...
If I were British I would be very very very angry... you Brits just got screwed over, to the tune of almost 3/4 of a TRILLION loss from the London Stock market...
Oh Ya, the US Government is now assisting (coercing) the French and German Governments to ‘outlaw’ online gambling as well. According to inside industry sources France and Germany are both set to make online casino gambling illegal inside their respective countries in the next two or three months...
So I figure, the real big push, financed and supported by the US land based Casinos, to regulate and legalize online gambling inside the US will start in about four to six months.
There is a few great
There is a few great articles on this that you can find by way of a post at Slashdot .
Check this article out at slate called:
Rolling the DiceThe United States' big legal gamble with Internet gaming.
Great article redclaw!
I always wondered how a country like Antigua could use the WTO to force the USA to bow to its will.
?Suspension of US Intellectual Rights and Copyrights is a powerful 'tool'. If the US does not comply with the WTO Antigua can (and most likley will) suspend US copyrights and US Intellectual Rights...
Could be that soon you will be able to buy M$N's new operating system or an Apple Ipod at a 90% savings in Antigua.
"Progressive" online
"Progressive" online jackpots may be one answer?
If the online guys collaborate to have a porgressive payout the way the casinos have successfully done that across their properties, it might give them back an edge. Sort of like Powerball lottery... state lotteries never made nearly as much as they do now that it's a multi state powerball.
I'm not much of a gambler, but I saw how popular progressive slots are in Vegas with company-owned casinos in Reno, Las Vegas, etc. combining the progressive payouts.