The US Department of Justice has ruled that all forms of online gambling are not illegal according to the Wire Act of 1961. The new decision states that the Wire Act only focuses on sports betting and not casino or poker offerings. This new position brings the probability of individual states or a group of states banding together to allow online gambling in their states. It also opens up possibilities in the Industry that have not been available in a long time.
First, the states have the possibility to bring in a lot of tax revenue and some job creation based on online gambling. States that have gambling or Indian Gaming in there state should clearly be interested in pursuing intrastate online gambling. They have a lot to gain and the possibility to balance their budgets JOKER123 . The question is how they will go about it.
Will they treat it like a state run lottery. Many states already have this is place. Some of the aspects of the lottery can apply to online gambling, but not much. The states would have to obtain the software, secure it, promote it and run it. They also have to regulate the payout and number generators. Not to mention, stop cheaters and provide funding for both deposits and withdrawals. The point to this is that states will be hard pressed to setup and run an operation like this. So many states would have to look at other options.
One of the options is Indian Gaming. They have many gambling establishments and probably are better suited to move in the online direction. They do have many of the same hurdles as the states and more challenges in the funding departments. Quite frankly online gambling could very much diminish their gambling profits from their brick and mortar casinos. Something they have a monopoly on for the most part. For this reason it is possible they may fight online gambling rather than participate in it.
The next logical option is the current gambling establishments. In Nevada, many have already applied for licenses for online gambling. They seem to moving in the direction of providing online gaming to Nevada. Just how far are they is uncertain, but they have the resources, the will, and motivation to make it work. They too are in jeopardy of losing revenues to online gambling. They are far more likely to participate than to fight it. They have proven they want to participate and are moving in the direction already.
The last option is current online gambling establishments. They already have the software, are currently operating, and have the funding options already in place. This positions them in the driver’s seat and gives them a potential inside track. Like the others mentioned above, they have some issues to overcome. First they are not located in the US at all. This poses a lot of problems since this is a states only initiative and they do not want to violate the Wire Act in any way. So these companies would have to set up shop in the state and operate a version of their software just for the state. Something they could pretty easily do.