Sunday, November 19, 2006

Gaming industry leaders say Internet gambling will thrive despite a recent
law effectively barring online betting in the United States. In October,
President Bush signed legislation making it illegal for U.S. banks and
credit card companies to process payments to gambling Websites But some
traditional U.S. casino operators view the rules as temporary and say a
shift away from online gaming is unlikely over the long-term. Internet
gambling has become illegal in the U.S. In 2005, Americans bet $8 million at
Websites. But legislation passed by the U.S. Congress has made it harder to
gamble online -- at least for now. Industry leaders, like Frank Fahrenkopf
from the American Gaming Association, doubt it will be enough to stop U.S.
gamblers. "I think what's going to happen is, number one, they will continue
to bet. They'll find other means to get their money to these offshore
sites". In Las Vegas, the home of American gambling, there's a different
view of the 'Unlawful Internet Gambling Enforcement Act' from the one in
Washington. While lawmakers aim to curb online gaming, Vegas is skeptical.
Casino operators believe demand will force Congress to permit online
gambling -- under strict government supervision. Rob Stillwell Rob
Stillwell, from Boyd Gaming, predicts American companies will eventually be
allowed to enter the market. "I think what it comes down to is a matter of
licensing and a matter of regulation. So to the extent that we can create
the mechanism by which to fairly regulate this business then I could see the
more traditional, commercial gaming companies getting involved". As U.S.
officials work toward a June 2007 deadline to find ways to enforce the new
rules - other countries are easing restrictions. The U.K. is looking to
regulate rather than restrict online gaming, bolstering the hopes of
Internet gambling businesses. Britain has warned that the U.S. legislation
could drive the industry underground.

Frank Fahrenkopf
Fahrenkopf adds, "Money always has a way of finding its way to where it
wants to go, so that's why I'm hopeful that the legislators, even those
legislators who are opposed to all forms of gambling, will realize, number
one, they're not going to stop it. Prohibition has never worked in this
country. It's better to regulate it. It's better to control it, it's better
to tax it".

The casino industry, fearing competition, has not always supported online
gambling but now it sees the Internet as a way to attract new gamblers

Rob Stillwell hopes lawmakers reverse course and permit U.S. companies to
get a slice of the action. "I think what the government may come to realize
is that people are gambling on the Internet anyway. And just because there's
this legislation that maybe prevents U.S.-born companies from profiting from
that type of activity, it's already happening".