Can The Online Gambling Companies Overturn The US Ban?
As we await first half results form PartyGaming, which are expected to show turnover down 66% and profits down a massive 97%, there are signs that the gambling industry is starting to fight back against strict US regulations. It appears that US gaming institutions and companies have spent over $1.3 million in the first half of 2007, attempting to push Barney Frank’s online gaming bill through Congress.
If passed in to law, Barney Frank’s bill will introduce a new system of regulation into the online gambling industry, and open up the US online gambling sector for business again. While online gambling companies seem to have been concentrating their efforts on non-US markets, it seems that there has been a lot going on behind the scenes.
When the US authorities initially stopped online gambling earlier this year, there were many observers who believed that this was just a strong arm ploy to reign in these massive gambling companies, and teach them a lesson. The announcement of plans to bring the companies under US regulation, leading to increased taxes, etc , only goes to further strengthen the argument.
Whether the Bill actually goes through to law remains to be seen, but there is no doubt that the industry will rise from the ashes at some stage. There have also been similar soundings from other governments around the world, with the UK authorities introducing strict laws on who can gain access to the UK market.
This is not just a fight for regulatory power, this is a fight for potentially millions of dollars in taxes and other income. While the US authorities have put themselves in perhaps the strongest position of all, they will need to ensure they do not push the gaming companies too far - otherwise they may look at others options and other avenues of income.