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Lobbyists Say Internet Gambling Having Clear-Cut Regulations Is Fine

Posted on March 28th, 2010

The American Gaming Association, a lobbying organization based in Washington, D.C., and which speaks for almost all casino operators and slot machine makers in the United States, has changed its position on the subject of legalized Internet gambling. While the group’s previous attitude towards online gaming was one of neutrality, the lobbying group, in a new policy statement, said it was now in favor of legalizing Internet gambling, but only if it is properly regulated to ascertain the reliability of the games and to look after the safety of players. The group says there is a system that can regulate the process at the federal or state level.

However, the lobbying group did not support any of the proposed plans being considered in Congress that could legalize online gambling, the topic of intense discussions in Washington, D.C. for several years now. The Unlawful Internet Gambling Enforcement Act (UIGEA), considered ambiguous by many, was passed in 2006 which prohibited financial transactions like betting and collecting winnings in online gambling using banks and credit card companies. American Gaming Association Chief Executive Officer Frank Fahrenkopf Jr. said, “If something were to start, then fundamentally this gives us a seat at the table. The majority of our board now has a favorable stance on Internet gaming, as long as there is strong regulatory control. But also, we’re not endorsing any of the bills now in the loop.”

The group said that in 2008 approximately $5.9 billion was spent by players residing in the U.S. on online gambling companies based overseas, and $21 billion was wagered by gamblers throughout the world. Fahrenkopf said the subject has been carefully considered by the association over the past years. He said after a thorough research on several concerns the association learned that online gaming can now be regulated through technology that would cover much such as protection for players gambling online and supervision by law enforcement authorities.

The organization also says if there was any cannibalization of the land-based casino business, it has already been done, considering the nearly $6 billion spent by Americans on online gambling even with the existence of the UIGEA. “It might even become a new profit center for some of our members,” Fahrenkopf said. “The dynamic for the large companies is certainly changing.” The group was divided on the choice of which had a better method of regulation- the state or federal government. Rep. Barney Frank, D-Mass. has sponsored legislation that would legalize online gambling under a set of rules, and Sen. Robert Menendez, D-N.J. introduced a bill calling for federal regulation of online poker.

Harrah’s Entertainment, which owns the World Series of Poker is in favor of legalizing Internet gambling and is giving its support to Frank’s bill. MGM Mirage attempted to operate an online gambling site that was based on the Isle of Man. The business that lasted only for 21 months did not accept bets from Americans.