Harrah's and Youbet Back Barney's online gambling Bill

Posted:18.05.2009, 20:08 Harrah's and Youbet Back Barney's online gambling Bill

Harrah's and Youbet Back Barney's online gambling Bill
http://news.yahoo.com/s/bloomberg/20090506/pl_bloomberg/aqupyyldta0q_1

In the past America's terrestrial gambling heavyweights have lobbied hard to block any moves to open the US market to online gambling operators. This time around their tune has changed.

The American Gaming Association, which represents the interest of member casinos across the US, has always been an ardent opponent of any moves in Washington to legalize online gambling. Now, faced with a new Bill introduced by Rep Barney Frank of Massachusetts that some believe will receive bipartisan support, they are conspicuously silent on the matter.

And one the AMA's largest members, Harrah's is actually lobbying in favor of the new Bill. Harrah's has contributed over $400,000 in the three months to March this year in support of Frank's new Bill, that would repeal the UIGEA and open the door for licensed offshore operators to operate in the US with fear of prosecution.

Harrah's about face is a clear signal that the US gaming industry has decided that if you can't beat them you just have to try to join them. Harrah's has for months now been readying itself for an online casino launch in anticipation of licenses being offered in the near future.

California based wagering firm Youbet, have also jumped on board the Barney Frank train, hiring a lobbyist to help push the bill in Washington, while the powerful PPA have publicly announced their intentions to back the Bill hard. Youbet's operations are currently restricted to wagering only, but they would move into online casino and poker if permitted by the new laws.

One of the lines being pushed by the gambling operators to lawmakers is the ability of online gambling taxes to help plug the many government budgetary holes resulting from tough economic times. As Michael Brodsky, CEO of Youbet reasons, “...it’s a very nice revenue-raiser at a time when everyone is looking to plug in the holes.” While Harrah's Vice President Jan Jones has been in Washington spruiking the message that online gambling taxes could pour up to $6 billion annually into Treasury coffers.