The American Gaming Association (AGA) issued a statement recently in which it proposes a feasibility study into the regulation of online gambling by a federal commission. The AGA is a top lobby group representing the land-based casino industry, and previously always held a neutral stance in the prohibition-regulation debate.
The online gambling industry is a $13 billion industry, with 60 percent of all wagers coming from Americans. Land-based casinos have no legal means to get a piece of this booming market, which grows at more than 14% per year.
The support of the AGA for a federal study into the regulation of online gambling is a significant departure from it's historical neutral stance on the issue. It makes it less likely that Sen. Kyl and Rep. Goodlatte will succeed in their current legislative efforts to ban online gambling and poker.
According to the AGA, the study should also look into a recent ruling by the World Trade Organization that stated a ban by the US of online gambling would violate international trade agreements.
Financial analysts reacted to the AGA statement by upgrading their ratings for online gambling companies.