Feature: New gambling bill of health for the US? - July 2005  

Mobile gambling consultant, Jacques LeDisco, outlines why a change to Nevada state legislation could provide a fillip for the US mobile gambling industry.

The proposed state legislation, Bill AB 471 not only offers Nevada casinos the opportunity to offer Wi-Fi gambling to patrons on resort premises, but also to a worldwide market of legalised mobile gambling.
Whilst online gambling is illegal in the territories of the US, in Europe, mobile phone users browse the wireless internet to play poker, bet on horses, play lotteries and scratch games, deal in blackjack and even try the slots. Such applications are designed for a variety of platforms, including Java-capable mobile phones smartphones, Palm- and even Pocket PC-based personal digital assistants.
A study by the firm Jupiter Research projected mobile gambling services to generate $5.7bn worldwide by 2006. The firm forecasts casino-style services to total around $900m, with lotteries and competitions accounting for the remainder. In addition, as the legality of such activities is not challenged in much of Europe, local financial institutions have no bans on processing transactions for mobile betting.

Legislation and regulation

Although Nevada is one of five states where internet gambling is expressly outlawed, the state Gaming Control Board was mute when MGM Mirage and Harrah's presented their proposals for moving toward virtual casinos. As analysts noted, licensing web gaming would generate increased tax revenues to state coffers. In fact, the AGA, once a vocal critic of internet gambling, now supports legalisation and regulation.
In 2000 glitz-and-mortar casinos initially moved toward online gambling, despite strict state regulations forbidding the acceptance of net-based bets. MGM Mirage announced a deal with Silicon Gaming to create a new subsidiary called WagerWorks. The proposed venture aimed to launch a free online site to promote MGM Mirage brands such as the Bellagio, Treasure Island and New York-New York casinos.
Commenting on online gambling, MGM Mirage chairman J. Terrace Lanni stated: "The internet has proven to be an exciting, emerging medium for both information exchange and entertainment. Our agreement with WagerWorks will allow us to better leverage the internet as a marketing tool for our family of properties."
In 2001, MGM Mirage received a license to open an online casino on the Isle of Man in the UK. After discussions of offering online gambling to non -US residents, no further progress was made.

Viva Las Vegas

By adding WAP and SMS/MMS communication protocols, along with support for Java-based colour handsets to the proposed Wi-Fi gambling services, Las Vegas resort properties can be promoted to 1bn mobile phone users worldwide.
In addition to enticing mobile users with comps and free mobile casino games, Las Vegas may consider offering real money mobile games to European and Asian residents.

Jacques LeDisco
Mobile gambling consultant
consult@radicaltek-mobile.co.uk

New Report: Mobile Gambling Issues, Obstacles, and Opportunities
This Mind Commerce publication is based on primary and secondary research conducted by industry analyst and consultant Jacques LeDisco in which he answers many important questions pertaining to on-line and/or mobile gambling including:
What are the legal issues for the gambling market in the US?
What precedents have occurred for mobile gambling?
What has been successful and what has not?
What is gambler sociology and gambling preferences?
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For further details see: www.mindcommerce.com/Publications/mobile_gambling.php
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