Online Gambling

A recent Reuter’s report quotes MGM CEO Terry Lanni as saying that the UIGEA “makes no sense whatsoever”. The article goes on to say that Lanni feels that the recent elections in the United States — in which the Democrats took control of Congress — may provide an opportunity to re-visit the question of regulation of online gaming in the United States.

Will anything come of this? I do not think so. Is it good that there is some ink on the idea that online gaming should be regulated in the United States? Sure… but it’ll take a lot more ink and many more land-based casino CEOs to pressure lawmakers before we see any movement on this issue.

Check out this introduction to The Online Casino Gambling Directory. It covers all the key features of the site in about six minutes.

 http://www.youtube.com/watch?v=0S5lUgLPo3k

22 Dec 06 update: Here are the updated videos:

• How to search and filter (2 minute video): http://www.youtube.com/watch?v=lQUdYzEz2ig
• Using the ‘Hot searches’ feature (2 minute video): http://www.youtube.com/watch?v=6hRaeRDchHE

NETeller recently confirmed that they are staying in the US market, at least until the US implements the provisions of the UIGEA in July 2007. Realistically, there will need to be a major shift in the United States Congress to allow NETeller to continue operating under its current business model in the United States. By major shift, I mean something on the order of a repeal of the UIGEA, which is unlikely.

One possible scenario that I can see is that the regulations that are implemented will contain a loophole through which NETeller will attempt to squeeze through. History suggests that most regulations of this nature do contain loopholes that are exploited by interested parties, and there is little reason to think that the UIGEA regulations will be an exception. Once NETeller attempts to squeeze through the loophole, litigation may follow (although I can’t imagine what jurisdiction would hear the case).

We’ll all have to wait and see. In the meantime, game on!

By the way, if you are a US player and recently go kicked out of your casino or poker room (like I did!!!), I got your back. Here is a list of online casino and online poker sites that continue to accept US-based real-money players. Fight the power.

In light of the Democrats winning control of the United States Congress on Tuesday, I am more convinced than ever that the Unlawful Internet Gambling Enforcement Act is here to stay.

The burden of the UIGEA is placed squarely on the shoulders of financial institutions (we’ll see to what extent in the next six moths or so as the actual regulations are crafted); since the Dems are less likely than Republicans to take steps to remove regulations that govern corporate behavior, I’m betting that we’ll be dealing with the UIGEA for at least the next two years.