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U.S. Gaming Lobby Does About Turn Re Online Gambling

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Supporters of a legalized and regulated online gambling industry in the United States will welcome the news that the U.S. gaming industry's lobbying group has reversed its once neutral online gambling stance, as it now believes the technology exists to regulate the practice at a state and federal level.

Based in Washington DC, the American Gaming Association (AGA) has issued a statement saying that it is now open to the idea of legalized online gambling in the United States, provided that 'regulatory structure is in place to protect players and the game's integrity', which could be a sign that change is imminent.

That said, the ASA - which represents the majority of America's multi-billion dollar land casino operators and casino game manufacturers - has still not made its position clear regarding the many pro-online gambling bills doing the rounds in Congress, which need to be passed en route to legalizing online gambling.

Said AGA CEO, Frank Fahrenkopf Jr, 'If something were to start, then fundamentally this give us a seat at the table. The majority of our board now has a favourable stance regarding online gambling, as long as there is strong regulatory control. But that said, we're not endorsing any of the bills currently in the loop.'

Just a few years ago the ASA was 'indifferent' regarding the legalization and regulation of online gambling in the United States, and for obvious reasons. The highly popular and lucrative internet activity was seen as a direct threat to the U.S. land casino industry, which is why its support for legalization was withheld.


However, now most of America's largest land casino groups have realized the financial implications of launching their own online gambling divisions or acquiring existing successful online gambling brands. This 'change in attitude' may play a part in reversing America's draconian anti-online gambling UIGEA legislation.

For example, Harrah's Entertainment was one of the first leading land casino groups to back the legalization of online gambling and support a bill proposed by Rep. Barney Frank, D-Mass. designed to establish a framework in the United States to allow online gambling operators to accept wagers from U.S. residents.

According to the AGA, in 2008 U.S. online gamblers wagered approximately $5.9 billion with offshore online gambling companies, while $21 billion was wagered by players globally.