Rumors of Harrah’s Move Towards Online Gambling

Written by Haylie | Tuesday, April 14th, 2009

In answer to the impending regulation of US online gambling, Harrah’s Entertainment has reportedly hired the former chief executive of PartyGaming, Mitch Garber, to head up a new department that will start building an online gambling leg for the US casino and entertainment giant.

While this report isn’t confirmed, a positive confirmation of the hire would mean a move towards online gambling for Harrah’s, with more US gambling corporations to undoubtedly follow. A move towards online gambling for a company like Harrah’s would mean that rumors of US casinos seeking to tap into online gambling market are true. The real rumors, though, are that US casinos are planning to take over as much of the industry as possible. And for big corporations that are otherwise losing profits daily, they have a lot to gain and the resources to do it.

Gary Loveman, CEO and Chairman of Harrah’s, predicted the legalization of online poker and foresaw the regulation of the sport as early as November 2007. Hiring an online gambling genius like Garber would obviously prove that Harrah’s is trying to stay ahead of the game and could possibly be trying to situate their WSOP brand in relation to the legalization of online poker to best optimize their position.

Garber had quit his position at PartyGaming last year, after helping the company rebuild after the UIGEA scandal in 2006. He also assisted with the legal problems the company faced before he signed on, helping iron out the criminal charges that resulted from their facilitation of online gambling in the US. PartyGaming allegedly misrepresented credit card transactions in order to conceal the payments of US winnings. So Garber has some experience in the business and would be a huge asset to a company like Harrah’s that otherwise doesn’t know anything about the online industry.

Recently, PartyGaming made amends with the US, promising to pay back $105 million that they profited from illegal US online gaming. Therefore, the US is seemingly trying to make friends with online gambling firms, as are big casino conglomerates like Harrah’s, who are desperate to get their foot in the door and get a head start when online gambling is deemed legal, and the floodgates open in the US.

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