Speculation is building that the major American land casino companies
have not been discouraged from online ambitions by the recent moves
to curb online gambling financial transactions by US players.
Certainly a share of the $13 billion global market for online gambling,
with some $6 billion thought to emanate from US gamblers, could be
a tempting plum if non-American offshore companies continue to back
away from the US player and US politicians can be brought into line.
Provisions that were not included in Senator Frist's last minute legislative
ambush over the weekend could actually encourage hope, because it
does not explicitly outlaw betting on online casino-style games, such
as poker and blackjack. The bill does bar financial institutions from
accepting "illegal" bets, leaving the question unanswered
as to whether some forms of online gambling are permitted. To date,
sports betting is one of the only forms of gambling explicitly outlawed.
The American Gaming Association, which lobbies for the U.S. land casino
industry, took a neutral stance on the bill, even though several prominent
members, such as MGM Mirage, have said they would like to start online
sites.
AGA president and CEO Frank Fahrenkopf is quoted as saying that his
organization does not believe the act eliminates the possibility for
American casinos to open online sites, regulated by individual states
or the federal government, in the future. "This bill did
not make anything legal or illegal," says Fahrenkopf. "What
it did was affect the mechanism by which Internet gambling takes place…and
there is some question as to whether or not that will be effective."
The AGA has expressed support for the idea of a bi-partisan congressional
commission to study and report on Internet gambling, something that
has been proposed by both Rep. Connors and more recently by Jon Porter,
a Nevada Congressman who introduced such a proposal in May.
The idea would be that such a commission would study whether online
gambling sites, run by U.S. companies, could be effectively regulated.
Fahrenkopf believes that bill is likely to be considered early next
year. The measure is backed by the land casino industry in the States
and continues to gather support.
"It is still Congressman Porter's intention to move ahead with
this bill," says Trevor Kolego, the congressman's legislative
director. "We hope to pass it, if not by the end of this session,
then next session."