Online gambling faces a hurdle within the industry

The American Gaming Association has dropped support for legalizing online gambling after seeing some major divisions between members on how a roll-out should progress.

Casino heavyweights have bickered over what the regulatory framework should be for the industry.

Though the launch of online gambling in Nevada, New Jersey, and Delaware hasn't gone as well as expected with offshore operators still dominating, Morgan Stanley forecasted the legal online gambling market could reach $8B a year by 2020.


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Comments (7)
  • youngdub774
    , contributor
    Comments (152) | Send Message
    Bring back PokerStars
    21 May 2014, 12:18 PM Reply Like
  • BDHPlayer
    , contributor
    Comments (322) | Send Message
    Tired of the government telling me what I can do with my own money.


    Legalize it and get it over with.
    21 May 2014, 12:44 PM Reply Like
  • Hurtsogood
    , contributor
    Comments (730) | Send Message
    I used to play on PokerStars, and FullTilt here in the U.S and loved it...that is of course until the Feds realized how much money they were missing out on and shut these sites down to us U.S players. hence it was called..."Black Friday" and happened on April 15 2011....i still miss playing online poker to this day.
    21 May 2014, 12:55 PM Reply Like
  • Howard Jay Klein
    , contributor
    Comments (1020) | Send Message
    At this point online gaming remains a very big question mark. Beyond the usually stated problems of transaction processing with wary banks and tepid results in the three test states a far more basic problem underlies the entire initiative. There is no certainty that the European patron model will have any resonance in the US. The entire betting ethos is different. Americans are far more experientially oriented. That's why there's never been a Las Vegas in Europe. They still view live gaming as something of an esoteric entertainment, fine in Monte Carlo, or small casinos in various countries but the critical mass that created the US brick and mortar gaming giant and also found quick footing in Macau does not exist in Europe. And that is part of the reason that on line is doing well there. Unlike the US European culture tends to favor entertainment in smaller doses, more intimate, less big and bold as is the case here. Online has a long way to go. It is early but at this point if you do not see the like of Wynn diving in you have to ask yourself this: Why?
    21 May 2014, 01:02 PM Reply Like
  • profitablegrowth
    , contributor
    Comment (1) | Send Message
    Why do so many US online gaming pronouncements reveal so little about the benefits of gaming expansion and so much about the fears of those overseeing and running gaming businesses? If the objective is to increase business and state tax receipts, then they should first increase their own probabilities of identifying and welcoming key constituents (customers, shareholders, employees, regulators and other communities those businesses must serve). That is not usually achieved within the "bubble" of industry media, regulatory filings or opaque dealings with legislators. It is done by demonstrating absolute credibility (track record of success), strong rapport (intellectual perspective, powerful language, skillful politics) and converting conceptual agreement into signed agreements (demonstrating tremendous value for ALL key constituents).
    21 May 2014, 04:24 PM Reply Like
  • Drucke
    , contributor
    Comments (3) | Send Message
    Over the years PENN has been very good to me, but now it is dead weight. I don't think we will ever see $13 a share. They are to big and have some weak spots.
    22 May 2014, 05:29 PM Reply Like
  • Howard Jay Klein
    , contributor
    Comments (1020) | Send Message
    From the perspective of someone who has run major casino marketing programs as a senior executive I can tell you without reservation that in my personal opinion do not look at online gaming as a panacea for sagging stock prices. The accretive value of merely being on line is elusive, if not questionable. Its a high cost basis business, acquiring a critical mass of patrons triggers huge marketing costs and sustaining cutting edge technology remains high. Companies like Penn, which are fine companies, pretty well managed, cannot overcome revenue flatness or declines in established markets with on line or further jurisdictions per se. They, like all big operators need to rationalize their capacity to fit the demand curve as it now exists not as it was during the time when underserved demand was all over the place.
    Those days are gone forever.
    29 May 2014, 08:03 AM Reply Like
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