US Operators Push For Online Casinos
Major casino operators in the United States are putting pressure on Congress to legalize gambling on internet websites run within the country. Company giants such as MGM Mirage and Harrah’s Entertainment are going head to head against internet casino opponents who are pushing to get American’s out of the online casino customer group with stricter laws and penalties.
The recent Jack Abramoff scandal involving Indian casinos caused an anti-gambling sentiment in Congress, but now these casino companies are trying to use this to their advantage. The casino companies are now stating that the only real way to gain control over the $12 billion gambling on internet, oversees industry is to bring those companies into the country. Once the United States becomes home to various online casinos, Congress can then legalize, tax and regulate the industry.
“The argument the industry is making is, if it is being done offshore, why not bring it in to the US so it can be regulated?” said Nevada Republican Senator John Ensign while discussing the issue with Harrah’s Entertainment, the world’s largest casino owner. “It doesn’t look like you can ban it.”
According to Federal Election Commission records stated that so far these companies have contributed over $900,000 to congressional candidates running this fall. The contributions are another way of convincing US lawmakers to take steps toward online casino legalization by creating a committee to study the impact legalized casino gambling would have in the country. Such a proposal has a chance of being passed by the Senate this year, said Ensign and Senate minority leader Harry Reid, a Democrat from Nevada.
Other lawmakers are staying far from gambling issues since the investigation of Jack Abramoff brought to light a network of connections between lawmakers and casinos. After pleading guilty to fraud and conspiring to corrupt public officials on behalf of clients in January, two Virginia representatives introduced new legislation that will help to shut down the flow of cash leaving the US for illegal gambling sites. Bob Goodlatte, Republican, and Rick Boucher, Democrat, introduced the new legislation that would force US financial institutions to work with law enforcement.
“Ultimately, we think it will be very, very difficult to get any prohibitive legislation through the Senate,” said gaming industry analyst, Matthew Gerard, referring to the proposed legislation.
According to Frank Fahrenkopf Jr., US casino companies feel “neutral” about the legislation. Fahrenkopf, the chief executive of the American Gaming Association, which represents Harrah’s Entertainment and MGM Mirage, said that the booming online gambling industry, “is just the wild, wild, West. Why not take a hard look at it?”
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Tags: casino companies, casino owner, indian casinos, mgm mirage