One of the biggest enemies of internet gambling is the brick-and-mortar gambling industry. Imagine Barnes & Noble pressuring lawmakers to ban Amazon and you have a fair picture of the relationship between internet gambling and, say, Las Vegas. Fortunately, Amazon wasn’t able to get the feds to lock up Jeff Bezos. With internet gambling, the bricks-and-mortars have had more success with regulating and criminalizing away their competition.
Over on the Becker-Posner blog, Judge Richard Posner today examines whether one of the claims of the casinos is true. Do they really offer better controls over possibly addictive and self-destructive gambling than online gambling sites? Surprisingly, Posner says they do. The reason is even more surprising. Real world casinos have higher overheads and must charge higher premiums—worse odds—to stay in business than the online gambling sites, Posner says.
So the legal casinos are correct that they offer a measure of control over gambling: by offering only bad odds, they reduce the demand for their product.
What’s interesting about this is that one possible casino response actually makes the case for online gambling stronger. Casino operators no doubt would like to deny that their odds are worse than online gambling—and that they make up their higher overhead by providing other services like splashy shows, restaurants, spas and luxury shops. But since spending money on these things isn’t any more “productive” or responsible than gambling, this actually makes online betting more responsible. At least the gamblers aren’t wasting their money watching Celine Dion!
Internet Gambling--Posner [The Becker-Posner Blog]
Posted by David Thomas , Aug 08, 2006 11:53AM
Unfortunately the opposite is true. The two largest US gambling companies, Harrah's and MGM/Mirage have their eyes on the online business. Harrah's long ago discovered that local (Indian and riverboat) casinos fed their mainstream Vegas and A.C casinos. Not only do they introduce new players to the casino environment, they collect "Players Club" information and use very sophisticated email and direct mail campaigns. They see online in the same light.
Because the American Gaming Association now seems to support US online operations, the most likely outcome of this interest will be legalization and regulation of internet gambling - but having these two giants with their multiple brands dominating the online industry, most smaller gambling websites and affiliate generator destinations will wither and die. Harrah's don't need no stinking affiliates!
Online gambling offers microlimit games and other advantages to players, including free play, and deposit limits. I recall the fight to keep riverboats from our fair city, and all the dire predictions of economic and social disintegration that would follow. None of those came true.
Yes, there will be a fight ahead, but with Britain legalizing online and the WTO taking up the fight, the lobbyists working for legalization will have a lot of ammunition to give to their dinner guests in Washington.
I'll give up online games when they pry the mouse from my cold,dead hand.
Posted by David Thomas , Aug 08, 2006 11:53AM
Unfortunately the opposite is true. The two largest US gambling companies, Harrah's and MGM/Mirage have their eyes on the online business. Harrah's long ago discovered that local (Indian and riverboat) casinos fed their mainstream Vegas and A.C casinos. Not only do they introduce new players to the casino environment, they collect "Players Club" information and use very sophisticated email and direct mail campaigns. They see online in the same light.
Because the American Gaming Association now seems to support US online operations, the most likely outcome of this interest will be legalization and regulation of internet gambling - but having these two giants with their multiple brands dominating the online industry, most smaller gambling websites and affiliate generator destinations will wither and die. Harrah's don't need no stinking affiliates!
Online gambling offers microlimit games and other advantages to players, including free play, and deposit limits. I recall the fight to keep riverboats from our fair city, and all the dire predictions of economic and social disintegration that would follow. None of those came true.
Yes, there will be a fight ahead, but with Britain legalizing online and the WTO taking up the fight, the lobbyists working for legalization will have a lot of ammunition to give to their dinner guests in Washington.
I'll give up online games when they pry the mouse from my cold,dead hand.