News

Tuesday, 14 April 2009 01:43

Speculation is growing that big changes are on the horizon for Internet gambling laws in the U.S. The state of play has just moved up a notch with this week’s appointment of Mitch Garber, former CEO with the Party Gaming Group, as the new head of Internet Operations and WSOP division at Harrah’s Entertainment.

Harrah’s is a major land based casino company with a big presence in Las Vegas and it looks like they are seriously manoeuvring themselves into the realms of Internet Gambling in anticipation of the expected changes in US online gambling laws. By taking on board the experience of a former senior one of the industry’s leading online gambling companies, they are showing their hand in no uncertain terms.

Harrah’s appears to be spinning out new businesses into the online gambling arena in the guise of a new formed entity which creates further speculation that it intends to make acquisitions in this sector of the industry. There is also the possibility that Harrah’s is showing interest in supporting a move towards regulated and legalised online gambling throughout the United States. This is regarded by speculators as being a strong possibility as it appears that many of America’s largest land based gambling companies have taken severe losses with the recent economic downturn.

Harrah's Entertainment, like many other U.S. gambling and casino companies, is suffering heavy financial pressures as the current recession bites deeper. If they do make their move online in anticipation of legislative conditions improving, they won’t be the first, or the last U.S. giant to get themselves involved in Internet gambling.

If we look back into recent history, we see where this could produce extremely lucrative rewards with a change in the law. In September 2001 the land gambling company MGM Mirage created an Internet gambling operation that was licensed in Britain’s Isle of Man and powered by Wagerworks. By June 2003, due to an untenable legal situation that existed in the United States, the operation was forced to close.

What can be learned from that process is that it established the project’s viability. The technology that was available at the time could be made use of now for protecting minors as well as minimising the possibility of fraud attacks or money laundering.

With companies like Harrah’s taking the initiative now in preparation of what is likely to come about with Barney Frank’s imminent House of Representatives attack in the on the UIGEA later this month, the future of Internet gambling in the U.S. market looks brighter than it has done for some time.