Earlier this week, HR 2267, the bill which will repeal UIEGA, the Unlawful Interstate Enforcement Gambling Act and permit, regulate and tax online gaming. The gaming allowed is primarily poker - sports betting is specifically excluded thanks to the lobbying efforts of the NCAA, NFL and the major professional leagues.
One should not get too excited about this milestone, however, as there is still a long road to passage through the whole Congress. Even should it manage to get through the House, there is still the Senate to contend with and Senate Majority Leader Harry Reid is from Nevada, particularly susceptible to the entreaties of the lobbyists of Las Vegas' casinos. So far those casinos have lined up in opposition to the bill, which I believe is the wrong approach. They should be actively encouraging the passage of the bill with a tought regulatory scheme written to favor licenses going to existing land based casinos rather than existing online gaming operations.
As it exists in its current form, should it become law, the winners will be the online gaming sites and the shakeout in that space has already begun. Party Gaming announced an agreement to merge with Bwin and form a $3.3 billion company.
One should not get too excited about this milestone, however, as there is still a long road to passage through the whole Congress. Even should it manage to get through the House, there is still the Senate to contend with and Senate Majority Leader Harry Reid is from Nevada, particularly susceptible to the entreaties of the lobbyists of Las Vegas' casinos. So far those casinos have lined up in opposition to the bill, which I believe is the wrong approach. They should be actively encouraging the passage of the bill with a tought regulatory scheme written to favor licenses going to existing land based casinos rather than existing online gaming operations.
As it exists in its current form, should it become law, the winners will be the online gaming sites and the shakeout in that space has already begun. Party Gaming announced an agreement to merge with Bwin and form a $3.3 billion company.
