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The first independent gambling guide to the best online
casinos!
US Land Casinos Keep Eye on Online
Casinos
Major American media,
including the International Herald Tribune and Bloombergs started the
week with some interesting reportage suggesting that U.S. land casino
companies were increasingly considering online casinos as a new
alternative for revenue growth.
The reports came after the American Gaming Association’s recent call for
a congressional committee to study online casinos rather than imposing
the immediate ban on online casinos that some legislators would like to
see.
The reports named MGM Mirage, Harrah's Entertainment Inc. and other U.S.
casino operators and said that there is increasing pressure on Congress
to consider legalizing online casinos. The online casinos industry has
reported healthy profits in the past few years, but online casinos are
untaxed by the government, and of the thousands of online casinos, many
are set up in offshore tax havens like the Caribbean.
Lobbyists and spokesmen for the big brands in land gambling are quoted
as saying that the best way to control the $12 billion online casinos
business, based offshore while drawing more than half its revenue from
the U.S. - is to regulate and tax it.
"The argument the industry is making is, if it is being done offshore,
why not bring it in to the U.S. so it can be regulated?" says Sen. John
Ensign, a Nevada Republican who has discussed the online casinos issue
with representatives of Las Vegas-based Harrah's, the world's largest
casino owner. "It doesn't look like you can ban it."
The companies, which according to Federal Election Commission records
have so far contributed more than $900,000 to congressional candidates
in this fall's elections, are pushing lawmakers to take a first step
toward legalization of online casinos by creating a federal commission
to study it. Ensign and Senate Minority Leader Harry Reid, a Nevada
Democrat, say the online casinos proposal has a chance of clearing the
Senate this year.
Meanwhile, Republican representative Bob Goodlatte and Democrat Rick
Boucher, are pursuing legislation to force U.S. financial institutions
to cooperate with federal law-enforcement authorities in shutting down
the flow of cash to online casinos based outside the U.S.
The House Judiciary Committee is scheduled to take up the online casinos
measure this week, and Majority Leader John Boehner says he intends to
bring it to a floor vote later this year.
Even if the measure passes the House, it would face long odds in the
Senate, says Matthew Gerard, an online casinos industry analyst at
Investec Securities in London.
"Ultimately, we think it will be very, very difficult to get any
prohibitive legislation through the Senate,'' he says.
The Justice Department continues to investigate and prosecute online
sportsbooks that accept funds from U.S. customers. On May 17,
prosecutors in Washington announced money-laundering charges against two
people who operated an Internet betting parlor in Antigua.
In addition to making campaign contributions, the U.S. casino operators
have reportedly retained some of Washington's top lobbying firms,
including Patton Boggs LLP and Barbour Griffith & Rogers, to promote
their interest.
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