Missing a $50 billion opportunity

Fifty billion dollars.

That's what America is leaving on the table by not legalizing, regulating, and taxing online gambling right now.

Fifty billion dollars.

According to a report by PriceWaterhouseCoopers (PWC), America could raise over $50 billion by repealing the UIGEA and taking online gambling.

Fifty billion dollars.

Now, y'all might remember that last year I wrote about a similar report by PWC that stated potential online revenues of only $42 billion.

So, what changed in the meantime?

Nothing. In fact, that is the most startling part of this report.

Last year's analysis factored in the likely effects of the UIGEA and its then-probable dampening effect on the online gambling industry.

This year's analysis realized that the UIGEA, in fact, has done very little to stop the growth of the online gambling industry, and therefore PWC increased the upper limit of the industry's potential by another 20%, given that the industry obviously is stronger than they originally expected.

So there you go.

As this report underscores, the UIGEA represents the worst kind of legislation. ... [More]

Responsible gambling is a two-way street

As a biased industry observer, I admit that I generally try to put a positive spin on gambling news, while pushing for industry and legal changes that I think will help grow and improve the industry.

But sometimes I feel like a PR guy on Wall Street. It gets tough trying to defend your position when you have no control over some of the stupid decisions being made around you.

Early last year, I took William Hill to task for it's part in allowing an obviously sick individual to lose £2.1m, including a single wager worth £347,000.

I also chided UK regulated gaming companies when the news came out that they were not volunteering their financial support to charity.

In my opinion, when you operate a gambling enterprise, it is just plain bad business to NOT do everything in your power to be socially responsible.

Especially when you rely on the whims of politicians for your livelihood. The best way to get your industry legislated out of business is to act in a manner that creates recurring news stories about people losing their jobs and life savings because somebody in your industry took advanta... [More]

North American jurisdictions racing for sports betting dollars

BANG! The race is on!

The dust is settling after the Presidential race, and now another race is beginning... which North American jurisdiction will be the first to fully embrace sports gambling - and take it online?

Of course, it all begins with first making sports betting legal.

Already in America, there are several jurisdictions that do NOT outlaw sports betting. Those are Nevada (of course), Montana, Oregon, and Delaware.

In Canada, most provinces already allow betting on sports lotteries offering poor odds - including online betting.

But now comes the interesting part... these jurisdictions have to decide whether that are going to sit on the fence or if they are going to attack the market.

Oregon has already hosted sports betting in the past, but was bought off by the NCAA, which is hosting basketball games in Oregon during next month's tournament.

Already, interesting things are happening in Delaware, as USAToday reported last week. While there is expected anti-gambling lobbying to come from the NFL and other leagues, it seems pretty likely that Delaware will soon be offering a sports lottery similar to the Canadian model.

That means that, very soon, there will be legal sports betting within a half-hour drive from Philly, Baltimore, and Atlantic City. I think it is safe to say that the states... [More]