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 Partypoker.com, one of the world's most popular online poker rooms, pulled out of the U.S. market in October. |
There is ample evidence emerging that the brick-and-mortar casinos already are starting to test the online waters with an eye toward eventually bringing that experience back home. In December, the Sands launched an online casino in the U.K. market. In February, Playboy followed suit. "Over the next two years, we're going to see things like an Internet-based MGM and a Bicycle Casino, where there is a great deal of brand cross-promotion going on," said Aaron Todd, a gaming industry reporter with Casino City, an online gaming portal.
In the meantime, there's "reasonable cause" to worry that the only online gambling services that remain will be those of the less reputable sort, according Bell. "If regulators had consumers foremost in mind, if they were really attempting to protect consumers, they would recognize that people will continue to play online, and it doesn't make sense to drive out of the market the people who are the most credible and legitimate," he said.
"It's an unfortunate set of circumstances from consumers' standpoint," said Sue Scheider. "I don't think the federal government is acting in their best interest. And it's clearly not revenue driven, because for years the industry has been begging, 'Regulate me, tax me.' "
She's also heard all the speculation about how Las Vegas interests might be driving the agenda, but "ultimately, no one really knows who is behind this crackdown or why they are doing it."
Tough Fight
Many companies have been anticipating the moves by the U.S. government for a long time. Cryptologic, a Toronto provider of software and networking infrastructure for online gambling sites, has been preparing for more than five years for the eventuality that the United States would make online gambling illegal. When the UIGEA was passed, it notified all its customers still allowing U.S. gamblers that they needed to find other vendors.
 Although you can't see the expression on players' faces, unlike at PKR.com, at Partypoker.com you get a sense of the winners and losers from the chips piled up on the table. |
"We've been in this industry for more than a decade and have always lived with the uncertainty of what the United States might eventually do," said Steve Taylor, CFO of Cryptologic. "For that reason, years ago we started focusing more on Europe and other global markets."
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