Internet gambling: Next sure thing?
Gamers are already creating online games that mimic casinos; foes see regulatory quagmire
THE PHILADELPHIA INQUIRER Monday October 8, 2012 5:51 AM
LAS VEGAS — Internet gambling, the next frontier for casinos, occupied center stage last week at Las Vegas’ Global Gaming Expo, known as G2E.
What form I-gambling will take and how it will be regulated are anyone’s guess, but the industry already is creating interactive products that will allow anyone who frequents a casino to enjoy favorite slot machines or table games online, in virtual versions that look identical to those on the casino floor.
The idea, said Mike Trask, spokesman for game-manufacturer Bally Technologies Inc., is “for the customer to have the same experience whether online, in the casino, or waiting in line at the grocery store, while playing games on an iPhone, iPad, Android and other tablets — anything with an Internet connection.”
A proposal in Congress calls for legalizing online poker nationwide. Meanwhile, states are looking for ways to do it themselves, said Frank Fahrenkopf Jr., chief executive officer of the American Gaming Association.
This year, Nevada became the first state to legalize and implement regulations for online poker. This past summer, Delaware authorized a wider array of online casino-style games, and California and New Jersey are weighing legislation.
“The entire gaming industry is anxious to see more clarity on the legality of online gambling,” Fahrenkopf said at a news conference last week on the $36 billion-a-year U.S. casino industry overall. “The AGA supports states having the right to license and regulate online poker, but not without federal minimum standards that address consumer protection, prevent underage gambling, promote responsible gaming and provide help for those with gambling problems.”
Such concerns have stymied passage of a federal bill for years, said Les Bernal, who heads the national group Stop Predatory Gambling.
“The reason Internet gambling will inevitably fail to pass Congress is simple: The American people don’t want it. Citizens don’t support government promoting gambling at the state level, either, because it has led to higher taxes, more personal debt, worsened state budget deficits, and turned millions of citizens into gambling addicts.”
Fahrenkopf said his organization continues to push Congress for a clear regulatory framework for Internet poker.
“Without action, we will see states legalize online gambling one by one, leading to a patchwork quilt of rules. That will make oversight difficult and put customers at risk,” he said. “What I can say is that no matter what Congress does, it’s not a matter of if online gambling will be legalized in the U.S., but when, where and how.”
In June, Bally became the first licensed provider of Internet gambling products in Nevada.
“We’re still in the mode where we’re waiting and watching,” Trask, the company’s spokesman, said as he showed off a giant LED screen featuring the GoldenNuggetpoker.com website using its I-gaming technology.
“We’re offering I-gaming technology to casinos as a play-for-fun poker run. The idea being that the platform is able to accommodate play-for-real-money poker, if and when it becomes legal.”
Las Vegas-based South Point Poker got an online-poker license from the Nevada Gaming Control Board in August.
“If fortunate, we will be able to market and be able to be the first nationally to offer poker online,” Chief Operating Officer Lawrence Vaughan said. “Over time, as federal bills and state compacts are formed, there is an opportunity to expand. It will get there, but there is a lot of politics to get there.”
