The United States Department of Justice has ruled that all kinds of internet gambling aren’t illegal based on the Wire Act of 1961. The new decision states the Wire Act only focuses on sports wagering and not casino or poker offerings. This new stance brings the prospect of individual states or a group of states banding together to allow online gambling inside their states. It also reveals possibilities in the market that have not been available in quite a long time.
First, the states have the possibility to generate a lot of tax revenue and some job creation based upon internet gambling. States who have gambling or Indian Gaming in their state should naturally be considering pursuing intrastate online gambling. They have a lot to gain and the possibility to balance their budgets. The question is the way they will go about it.
Do they address it like a state run lottery. Many states currently have this is place. Several of the aspects of the lottery can be applied to internet gambling, although not much. The states would have to obtain the software, secure it, promote it and run it. They will need to manage the payout and number generators. Not to mention, stop cheaters and supply funding for deposits and withdrawals. The point to this is states might be challenged to setup and run an operation like this. A lot of states would have to examine other options.
Among the alternatives is Indian Gaming. They have numerous gambling establishments and probably are better suited to maneuver in the online direction. They do have numerous of the same hurdles as the states and more challenges in the funding departments. Quite frankly online gambling could definitely minimize their gambling profits from their brick and mortar casinos. Something they possess a monopoly on for the most part. Because of this it’s possible they may fight online gambling as opposed to participate in it.
Another logical option is the present gambling establishments. In Nevada, many have applied for licenses for internet gambling. They seem to be moving in the route of providing online gambling to Nevada. Just how far are they is uncertain, but they have the resources, the will, and motivation for it to work. They too are in jeopardy of losing revenues to online gambling. They are much more likely to participate rather than fight it. They have proven they want to participate and are moving in the direction already.
The last option is current internet gambling establishments. They have the software, are presently operating, and have the funding options already set up. This positions them in the driver’s seat and gives them a potential inside track. Like the others stated previously, they’ve got some issues to overcome. First they are not based in the US at all. This poses alot of problems because this is a states only initiative and they don’t want to violate the Wire Act in anyway. So these companies have to set up shop in the state and operate a version of their software exclusively for the state. Something they could pretty easily do.
The decision obviously creates alot of unique possibilities, but which option is right will be determined at another time if at all. The term US poker sites and US casino sites may be a thing of the past and replaced with state poker sites and state casino sites. Would it not be weird to Google search for Nevada online poker sites or New York online casinos.
