Online Gaming Approved!

The change in America’s economic landscape has caused a shift in the stances of many land based casinos regarding online gaming. What was once considered a threat is now a door to new possibilities!

A recent article in the Sunday New York Times pointed out that land based casinos are increasingly lending their support to the legalisation of online poker. Initially land based casinos saw the online industry as a threat to their industry; however, due to the current economic landscape it appears that many companies are beginning to change their minds.

The mood began to change this spring when the American Gaming Association (AGA) changed its stance after the markup of Representative Barney Frank’s proposed bill to regulate the online gambling industry. After Frank agreed to some concessions such as the banning of those who have violated the UIGEA from being active in the online gaming market, the AGA officially changed its stance and now support a regulated industry.

The reason the land based casinos are changing their opinions may be because online poker is now the main driver behind the regulatory actions. In land based casinos poker only amounts to 2% of the activity and should only online poker be legalised, it is unlikely to threaten their business. If full online casino operations were legalised then it is likely that the casinos will have some issues.
Another reason the AGA has changed their stance may be because of the revenues generated by online poker. It is thought that a regulated online poker industry could generate up to $5 billion revenue per year through taxation.

At the moment the push for regulation of the industry is not looking particularly likely, Frank has said that he is ‘not optimistic’ as the bill HR2267 has not yet come to a vote on the House floor. Congress is currently in recess until after the midterm elections in November so the issue will not be looked at until the “lame duck” session. If the bill doesn’t move through Congress in the “lame duck” session then the bill will die when the new Congress is seated in January.