Possibility of Regulated Online Casinos Making Strange Bedfellows

Land-based US gambling companies were once the sworn enemy of foreign online casino operators, but the potential change in US law has the two sides getting chummy with each other.

Online casino operators, tempted by the potential billions that may be made if and when the US regulates Internet gambling, are devoting substantial resources to preparing for the time when US licenses become available. Among the maneuvers being made are the alliance of overseas Internet gaming operators with US land-based casino corporations.

Only a short time ago, such companies as Harrah's and MGM were the arch-enemies of foreign online gambling operators, resisting the new source of competition. VBut as the landscape of US regulation develops, both sides are finding a use for the other.

The passing of the UIGEA in 2006 scared many legitimate gaming companies out of the US market. Persecution and harrassment by the Department of Justice continued the pattern, leaving only a few aboveboard companies operating in the US among dozens of shadt outfits. The law effectively made predictions about online gambling come true, as criminals benefited from the ban and exploited the unintentional result, a block only effective against transparent and listed operators.

"When the act was signed into law, we stopped taking wagers from the US and effectively gave up 75 per cent of our business in one go," said John Shepherd of PartyGaming, one of the companies eager to return to the US, in a statement to Bloomberg News.

Because US regulation will carry requirements that likely favor the domestic land operators already under state regulatory rules, overseas online casinos receive an advantage by partnering with US interests. Likewise, the experience and knowledge acquired by UK and other Internet gaming concerns make them attractive to land casino execs unfamiliar with Internet operations.

Harrah's and 888.com already have agreements in place for European business, and may become linked for US operations as well. PartyGaming is negotiating with several land casino companies to create a US network when the time arrives, and other online gambling outfits seem likely to partner with US gaming companies.

Published on May 21, 2010 by MattMiller

Top 10 NO deposit Bonus offers @

Read More... [Source: Harrahs Casino News]