Whilst arguments in various states continue over expanded gambling on land – too much or too little - a subcommittee in Washington has approved a bill that would ban Internet gambling. Shares in a number of online gaming companies quickly fell on the London Stock Exchange, although it is far from evident that the bill presented by Senator Bob Goodlatte, a Republican from Virginia, will get to a vote in the House and Senate before congressional elections in November.

Another initiative that is running short of time is one to get the first non-tribal casino on the ballot in Oregon. Under state law, ballot issues can be opposed and the Oregon Supreme Court asked to review them. This process can take several weeks and then 100,000 voter signatures would have to be collected by 7 July to get the issue onto the ballot for voting later this year. Nine tribes, naturally opposed to competition, operate casinos in Oregon but approval is being sought to establish a casino at the greyhound track in Multnomah Couny that is no longer operational.

In Iowa there is a different sort of problem. The Iowa Lottery’s TouchPlay machines have proved too successful and under new legislation all 6,400 machines were supposed to be turned off by one minute before midnight Wednesday. This has caused much dissent amongst the small businesses that have invested in two or three machines and were using proceeds to offset higher costs and fuel prices.

In Washington the attempt to ban Internet gambling would prohibit placing bets at some 2,300 sites. The legislation, if introduced, would prevent payment by credit card, cheque, wire or Internet transfers. Goodlatte might proclaim that online operators are unlicensed, untaxed and unregulated, but as none is located within the United States it would appear that the only way to make such legislation work would be to prosecute members of the American public, which could prove costly and unpopular.

It is estimated that the online gambling industry is worth around US12 billion annually and rising. Other jurisdictions do license and regulate the industry and the UK will shortly do so. The US market for online gamblers, predominant from the start mostly because of higher access to computers, is still an important market but many operators are moving away from relying on it. The global market for online gambling is in its infancy but expanding fast. (E-05.04.06)

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