News

Wednesday, 09 June 2010 08:33

Traditional US land based gambling companies that were once arch rivals to the online casinos of foreign operators have buried the hatchet to face potential law changes together.

Tempted by the promise of a multi billion dollar windfall that could land squarely in their laps if the proposed changes to the current US online gambling laws come about, operators of foreign online casinos have been allocating substantial resources toward their preparation for those changes. One of the biggest inroads being made is in forging alliances with US based casino operators, once their sworn enemies in a cut throat business that not so long ago would not have been possible. But as the way these companies do business may alter in a big way sometime soon, the likes of MGM and Harrah's seem to have found the idea of pooling their resources with their online counterparts much more appealing than they once did.

When the UIGEA was passed in 2006, many legitimate online gambling companies were forced out of the lucrative US market. Persecution first by the Justice Department and then later by determined State lawmakers made it clear that the penalties were too high a price to pay for remaining in business there. What was left included a few legitimate companies among dozens of unlicensed and shady outfits. The law enabled criminals to benefit and exploit the new legal status of online gambling, which had the unintentional result of effectively blocking only transparent and legitimate operators.

With the proposals to reverse the 2006 law, it is highly likely that the new US regulations will carry requirements favouring domestic land based gambling operators that are already legally licensed under State rules. Overseas operators of online casinos will gain a distinct advantage by partnering together with those established US companies. The land based US casino companies will get, in return for the partnerships, the experience and up to date knowledge of foreign based Internet gambling concerns which will give them the edge over their US based rivals.

Companies like Harrah's and 888.com have already set up agreements with European businesses which will pave the way for linking them to US gambling operations. PartyGaming is also currently negotiating with several US casino companies that will see them create a substantial US network in readiness for when the law does change.