What Does the Looming Regulation of US Online Gambling Mean for the Industry?

Written by Haylie | Sunday, March 29th, 2009

We know it is coming. The UIGEA is in place for repeal. We’ve signed the petitions, followed the headlines, and now, the day may actually be near. But what should we expect from the US government when they set out to regulate online gambling in the United States? Do we really expect it to go as easy as it could? One thing we can expect is to see is some action from the established land casinos in Vegas, Atlantic City, and Biloxi, who have been fighting with every penny they have to combat the economy which is made worse for them by the availability of online gambling. These gambling giants have been dealing with the US government for decades, and they have long-established political connections with Washington.

The American Gaming Association, the frontline supporter for Nevada and New Jersey casinos has recently changed their stance on the regulation of online gambling. While at one time, the AGA was a fierce opponent for regulation, the organization is now hesitantly supporting the licensing and regulating on US online gambling in some form.

Gaming expert, Richard Hauser, expects the big land casinos to use their deep-rooted pull in Washington to overtake the small overseas online casinos, setting up shop online and closing down many online casinos in the process. Hauser states, “Harrah’s, MGM Mirage, and the like will try to use their brand power to overwhelm the smaller foreign-based online casinos. Those companies are no longer able to continue their out-of-control spending on new resorts, and are turning to the Internet as a new source of income.” These corporations are desperate right now to make their comeback and are expected to at least attempt to take on a dominant role in the US Internet gambling industry, as they make a place for themselves in the decision making process that lies ahead in regards to online gambling licensing and regulation in the United States.

There is speculation that these corporations will use lobbying to motivate legislators to implement regulation and licensing policies in their favor. The failing state of the land-based casino industry currently in the US is in to their own benefit now, as they prepare to make the argument that their need for new sources of income to save the industry on American soil is more important than any other factor that stands to shape the new policies.

Operators of European online gambling enterprises are watching carefully as developments occur within the US. Represented by the Remote Gaming Association (RGA), European interests are keeping their fingers crossed that the US will act respectably, honoring their agreements on free trade in services, or they will be prepared to present their case before the European Commission. The EC also seems to be doing their homework in preparation for a conflict, having recently conducted an investigation on the US Internet gambling policies. As they organize their efforts for the possibility that they may have to take the case to the World Trade Organization, they will be ready if the need for protective measures should arise. In a perfect world we could hope that there would be no bullying, and that everyone would play fair.

Resources:

http://www.usaonlinecasinos.us/articles/96/1/260/Land-Casinos-Ready-to-Invade-Online-Gambling-When-US-Law-Changes.html

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