Land-Based Casinos to Benefit from Regulation?

Land-Based Casinos to Benefit from Regulation?

Posted on 19/04/09 - by Theodor Mavrodis News

With the recent developments in the U.S. government it seems that the odds that online gambling will be licensed and regulated are getting better by the day. When everything is set and done the big question that will arise is which companies are granted the rights to offer online gambling services.

Barney Frank is the main man behind the introduction of a new bill that is designed to overrule the current UIGEA legislation. Recently a deadline for this introduction has been set for the end of this month.

Battle for the Licenses
However, even when the new potential legislation is put in place, the whole thing is far from over as then the battle for the licenses will burst loose. Industry experts believe that current land-based casino operators may use their strong political lobbies to end this competition in their favor.    

Industry Expert
Gaming expert Anthony Riello predicts that companies as MGM Mirage and Harrah's Entertainment will use their current economic positions as an argument to convince the government to grant licenses to them.

The financial crisis has handed out a major blow to these companies, and the granting of exclusive licenses might be a way to receive valuable government support. These companies employ a great number of U.S. Citizens, which can be used as an argument for protectionist government measures.

Lobbying for Licenses
How this will work out first of all depends on whether or not the new bill of Barney Frank will be passed through. If this goes as planned than the lobbying will begin and the different parties will do anything in their reach to get access to the world's largest online gambling market.