Nevada gaming industry not worried about threat of online gambling
by Stacy McCarthy, Outpost staff
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The Reno arch greets visitors to "the biggest little city in the world." Photo by Claire Tapia |
Online gambling has not deterred people from dropping quarters in Nevada's slot machines or betting their paychecks on a hand of blackjack, a gambling expert said.
"Online gambling has not affected Nevada's casinos," said Bill Eadington, professor of gaming issues at the University of Nevada, Reno." Their revenue has remained consistent and online gambling has not had a significant impact on the gaming industry in Nevada."
However, as reported by the Las Vegas Journal, Eugene Christiansen, president of Christiansen Capital and a leading gaming e-commerce expert, Nevada's gambling operators are not able to profit off the Internet gaming market because of state and federal prohibition. Current state policy does not allow casinos or their investors to compete for profits in the online gambling industry.
Recently, the government has focused attention on online gambling. In July 1999, the Senate voted 90 to 10 to enact the Internet Gambling Prohibition Act. To become law, the bill needs to be approved by the House before the end of this congressional session, according to Red Herring Magazine. Opponents of the proposed bill argue that the Internet is a new medium and should be judged on its own merits, rather than falling under the 1961 prohibition against using wire or telephones to make interstate sports wagers. According to the Las Vegas Journal, Christiansen said, "The question is who will provide Internet gambling, and how will it be operated, regulated, and taxed?"
Christiansen said that Nevada casinos are prohibited by state law from owning Internet gaming sites. This handicaps casino investors form profiting from their brand names, and allows newly formed companies to capitalize off this new medium. However, according to Christiansen, a number of challenges face online gambling operators. He states that worldwide gambling is challenging because many countries prohibit Web gambling. He also mentioned that issues about the legitimacy of funds being transferred via the Internet may create a problem for online gamblers. His last observation is that many gamblers participate in gambling because of the social environment found in casinos. Therefore, destinations like Reno and Las Vegas are in no danger of losing business to online gambling.
Leslie Henrie, PR coordinator for BoomTown Casino, said that they do not feel threatened by online gambling.
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Even though Nevada is not facing a crisis due to online gambling, Internet gaming is increasing and the numbers are too big to ignore, according to Christiansen.
"The increasing numbers of online households, improved broadband Internet access, and lowered barriers of entry, make online gambling growth certain," said Christiansen.
Virtual Vegas is one of the most popular sites, according to Red Herring magazine. It pulls in 100,000 visitors per month. This number is to large to dismiss, however, according to Eadington, Nevada is not being affected by this online industry. The only problem is that Nevada casinos can not capitalize off this profitable and growing venture.
Posted May 1, 2000
Copyright 2000 Nevada Outpost
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