NY Times on Land Casinos and Online Gambling

October 07, 2010 | News Category: Gaming Law

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The New York Times recently ran an article about the attitudes of land casinos to online gambling in the United States. The article generally viewed online gambling in a positive light.

The author of the article, Bradley Bower of Bloomberg News reported that the American Gaming Association has reached a point where they realize that online gambling could be regulated. Bower noted that the American Gaming Association is working on a "proposal that would ask Congress to legalize at least some form of online gambling."

After a phone interview with the American Gaming Association's Chief Executive, Frank J. Fahrenkopf Jr., Bower quoted him as saying: "We have been working on something, and continue to work on it." Fahrenkopf Jr. explained to Bower that the association has not finalized the final details of their approach to online gambling legislation, which includes how they feel the income from Internet gambling should be taxed.

At this stage, however, the American Gaming Association is trying to maintain a fairly neutral stance because some of their members, such as Harrah's support legalized online gambling, and other land based gambling companies fear the kind of competition they would have to cope with should online gambling be legalized.

Sebastian Sinclair told Bower that even though some land based companies are opposed to online gambling legislation, some of them are beginning to have a change of heart, although it will likely take some time for a real change to take place in the industry.

Sinclair explained: "When any industry is confronted with something of this nature, a game changer that is a paradigm shift, the first reaction is to circle the wagons to protect your business. But then, that changes over time."

Bower summarized for his readers the status of where the Barney Frank online gambling legislation is at this time. He explained how it has not yet reached the House Floor, although it has now passed the committee stage.

The author also explains that there has been interest, and therefore powerful lobbying, from groups such as Indian tribes, lotteries, and racetracks, all of whom want to ensure that they end up with a secure monetary interest in online gambling, should it be legislated and regulated.

He also explained how states such as California, Florida, and New Jersey have all been active in some way in support of legalized and regulated online gambling.