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.

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.