Stick or Twist? Will America's Online Gambling Laws Change?
It seems like even the US presidential candidates are getting embroiled in the debate about the legalisation of online gambling websites in the US; whilst Jeb Bush called the rise of daily fantasy sports sites "day trading without any regulation at all", Chris Christie said simply "let them play".
The reality is that sooner or later the US government is going to have to look at how it administers online gambling, and take some big decisions.
Despite the dotcom explosion of the early naughties, online gambling in the US had never quite come to resemble the cash cow many people thought it would be, and one of the main reasons for that has been the inability of different states to agree on a common policy that would make it crystal clear what kind of activity is permitted, and what is not.
The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 was the hammer blow that put an end to any discussion about the potential profitability of online gambling, outlawing "gambling businesses from knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law."
Game over – America prefers real life casino's – and casino owners made for, still make in fact, a powerful anti-online lobby.
And yet?
Some people have estimated that a fully developed and legalised American market – with casinos, online and retail oulets would combined contribute more than $12.4 billion in annual revenues to the US economy.
At the same time, the rise of illegal online gambling syndicates is troubling. A recent New York Times expose uncovered an illegal gambling ring consisting of more than 2,000 US based bettors, gambling millions of dollars using different banks and credit cards as well as overseas websites to evade detection.
The suspicion is that this is just the tip of the iceberg. So what is the immediate solution?
Just like the politicians, the public are divided. Not just about whether online gambling should be permitted or not, but about who should be making the decision. The states, or the government?
So far only 2 states have taken the bold decision to legalise online gambling – Nevada and New Jersey. These 2 states, gambling powerhouses, raced each other to be the first in the US to legalise online gambling with Nevada just about beating New Jersey to the punch. "Today I sign into law the framework that will usher in the next frontier of gaming in Nevada", said governor Brian Sandoval, a former chairman of the Nevada Gaming Commission.
For the everyday US gambler who enjoys a flutter on a sporting event or a virtual trip to the casino, but is unable to do so, these must feel like frustrating times. But there are alternatives. The rise of e-sports, for example, like competitive gaming – no fewer than 36m people live streamed the League of Legends World Finals with a peak concurrent audience of 14m – that's a lot of competitive gamers!
Then there is FanDuel and DraftKings – fantasy sports sites where you can take on your friends – and lay a wager on who will win each week – but once again, the regulators are already breathing down their necks.
It seems like America simply can't decide what it wants to do. Save its money for an annual Vegas holiday and blowout, or take the online route – on the one hand it's easy, cheap and the wagers are smaller – on the other, compare and contrast a lonely individual sitting in a darkened room in an upstairs office while their husband or wife and kids play downstairs. It's hardly a compelling image. But let's not forget, away from the bright lights in Vegas things can also get pretty grim.
Meanwhile European online gaming companies and retail chains are looking on excitedly from the side-lines – the market in Europe has been legalised in many countries– first the UK, then Italy, now Germany, Spain and France are following suit. If the American markets finally do open their doors, the European bookmakers will come rushing in. Betfair and Ladbrokes are already in Nevada, and the Canadian company behind Party Poker have finally managed to prise the door open a crack in the state of New York.
In Europe, the older online betting culture is now more relaxed; witness these culturally significant and comical collections of some online bookies greatest ads. Online tipster communities take the sting out of aggressive or illegal gambling sites, asking visitors to discuss their best bets and volunteering information about where to get the best odds or what a bet365 bonus code is.
Will America take a leaf out of Europe's book, relax regulation and open the floodgates? Right now it's anyone's guess - but I'd wager Donald Trump and his fellow White House wannabees will have a (carefully considered) opinion. What's paramount is that it's the lighter, entertaining side of online gaming that wins out – much like the legalisation of marijuana, there's a PR war being waged; the more responsible adults there are in the world, the better.
