Insiders Look to Online Betting as Big Business

[clevfan]

Edward Lawrence, Reporter

Insiders Look to Online Betting as Big Business

Nov 18, 2008 06:12 PM EST
KLAS-TV

The economy took center stage at the largest gaming conference in the world that opened in Las Vegas. But the nation's economic struggles may actually be a win for the expansion of the gaming industry.

These days almost anything is just a click away except legal gambling. For that, you must walk into a licensed and regulated casino. Next year that may change when congress goes back into session, according to American Gaming Association President and CEO Frank Fahrenkopf.

"Looking at our industry in hard times, it is a way to provide some revenue for state government," he said.

Nevada alone faced a $1 billion deficit this year. The federal government deficit makes that look like pocket change.

As the lobbyist for the gaming companies, Fahrenkopf says the internet may be the solution. He believes a bill setting up federal regulation and taxation of legal internet gambling can pass in 2009.

"Having $8 to $15 billion, as the offshore folks say, is there in new taxes has to look very, very inviting to a new congress," he said.

Harrah's Entertainment has been a supporter of regulated online gaming. Tim Stanley is in charge of innovation, gaming, and technology for the company, "Each time that there is some sort of shift or change in economies, whether they be state, local, or federal, I think these things get back on the table as far as a rational discussion."

Harrah's owns the World Series of Poker and is poised to launch their own poker gaming site if it becomes legal.

"I think by in large under appropriately regulated and licensed operators that this can be a fun and fulfilling activity and I think that it could be a win-win," he said.

A win for gaming companies that need money and as Fahrenkopf says, a much needed tax revenue for the government without raising taxes or cutting programs.