America and their internet gaming regulations continue to swing back and forth. The general consensus is that it isn’t a matter of “if” but “when”. In Dickinson Wright’s Gaming and Legal Newsletter in September they examine California and the push for legalized internet poker. There are currently three separate internet poker proposals under consideration but still there has been no decision.
California has a population of over 38 million residents – a huge market which could easily sustain a healthy internet gaming industry. The fact that organized and legally endorsed gaming flourishes in tribal casinos, commercial card rooms, race tracks and lotteries already underpins a vibrant existing gaming industry. Reports suggest the industry currently generates US$10 billion in gross gambling revenue.
So what is the problem? Politics, of course. But what does this really mean? Well, there isn’t an iceberg’s chance in hell any American state will endorse internet gaming until they make sure they (the government) get their slice of the pie. The other big question is who will be granted the “goose that lays the golden eggs” and how the government will regulate the industry? One thing for certain is that a small group of people are going to make an insane amount of money no matter how hard they are taxed and this means there is a huge chance of corruption which must be addressed prior to jumping blindly into any new system.
There are problems which need to be solved but it appears that just like prohibition in the 1920s, the government will eventually take an “if we can’t beat them, join them” approach. When it finally happens it will change the face of gaming worldwide and the global gaming industry will watch on with great interest.
