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Casino vies for online license
MGM Mirage bids for Web gambling site in British Isles
By JEFF SIMPSON
lasvegas.com GAMING WIRE
MGM Mirage isn't waiting for Nevada casino regulators to decide whether the state should regulate Internet gambling.
The company has applied for a cybercasino license from the Isle of Man, a small semi-independent island located in the center of the British Isles.
"There is no certainty anyone will ever be able to set up a Nevada-regulated site," MGM Mirage Vice President Alan Feldman said Friday. "We expect the Isle of Man regulation to be as strict as Nevada's, and expect to be able to comply with Nevada regulation as well as the Isle of Man's."
The company was one of 10 or 11 firms to file applications to operate an Internet casino regulated by the island government, Feldman said.
Applications were due last spring, and the Isle of Man is expected to select three companies to license in September.
MGM Mirage's interest in a foreign Internet casino comes as state gaming regulators begin to tackle the question of whether to regulate Internet casinos and federal lawmakers propose anti-Web gambling bills.
"Because of conservative members of Congress hell-bent on controlling individuals and their actions, it's no sure thing that Nevada will ever be able to allow Internet casinos," Feldman said.
Nevada Gaming Commission Chairman Brian Sandoval said MGM Mirage told state regulators the company planned to apply for the Isle of Man license.
"MGM Mirage assured me they wouldn't accept wagers from American citizens or minors, and that they'D stay in compliance with U.S. and Nevada law," Sandoval said.
Sandoval noted that Nevada regulations don't prohibit MGM Mirage or any other state license-holder from operating Internet casinos regulated by foreign jurisdictions.
"But if an American citizen were able to make a bet on the site, (MGM Mirage) would be subject to discipline in the state of Nevada," he added.
The U.S. Justice Department has considered Internet gambling to be illegal from within the United States because of a 40-year-old federal law designed to outlaw interstate betting on sporting events via the telephone.
The Isle of Man plans to pick companies already licensed to operate land-based casinos, he noted. Those companies would be reluctant to lose their significant investments by risking their licenses to operate brick-and-mortar casinos by violating rules in those jurisdictions.
A knowledgable source said five of the initial Isle of Man license applicants were from the United States, but declined to identify the applicants.
Sandoval said no other companies had informed him of an Isle of Man application.
Harrah's Entertainment, Mandalay Resort Group, Station Casinos and Boyd Gaming Corp. executives said Friday their companies had not applied for the licenses.
Park Place Entertainment spokeswoman Debbie Munch failed to reach top company executives Friday who could say whether their company is interested in an Isle of Man license.
Wynn Resorts spokesman Billy Vassiliadis failed to return an afternoon phone message seeking comment.
MGM Mirage Chairman Terry Lanni has been an outspoken advocate of U.S. regulation of Internet gambling, a fact noted by Internet gambling expert Mark Balestra, vice president of publishing for the St. Louis-based River City Group.
"Lanni's been very clear about what he wants to do, and I'm not surprised they applied for a license," Balestra said. "While the Isle of Man plans tougher regulations than the Caribbean jurisdictions, I don't think the technology exists to keep any Internet casino operators in compliance with Nevada law."
A large percentage of the companies offering Internet betting are located in the Caribbean, where they escape the oversight of major world governments.
Nevada lawmakers recently approved a bill allowing the state Gaming Commission to develop rules to let Nevada casino operators operate Web gambling sites.
The five-member panel must find that technology exists to prevent people from betting in countries and states where Internet gambling is illegal. The technology must also be able to prevent children from gambling.
Federal lawmakers have also recently targeted Web betting.
Sen. Jon Kyl, R-Ariz., and Rep. Bob Goodlatte, R-Va., propose to outlaw Internet betting.
Rep. Jim Leach, R-Iowa, and Rep. John LaFalce, D-N.Y., have introduced a bill that would limit the ability of online casinos to accept credit cards or electronic checks for customer wagers.
Balestra noted the problems Las Vegas-based American wagering had in 1999 with its Australian-based Internet sports betting subsidiary, Megasports Australia.
Nevada Gaming Control Board agents were able to place wagers on the Web site from within the state's borders. The company paid a $10,000 fine and last year agreed to sell the operation.
"With what MGM Mirage has at stake in Nevada and elsewhere, they'd be risking an enormous amount," Balestra said. "I can't imagine every state (MGM Mirage is licensed in) will approve of the company operating an Internet casino from the Isle of Man."
The Isle of Man is a 220-square-mile island in the Irish Sea.
MGM Mirage bids for Web gambling site in British Isles
By JEFF SIMPSON
lasvegas.com GAMING WIRE
MGM Mirage isn't waiting for Nevada casino regulators to decide whether the state should regulate Internet gambling.
The company has applied for a cybercasino license from the Isle of Man, a small semi-independent island located in the center of the British Isles.
"There is no certainty anyone will ever be able to set up a Nevada-regulated site," MGM Mirage Vice President Alan Feldman said Friday. "We expect the Isle of Man regulation to be as strict as Nevada's, and expect to be able to comply with Nevada regulation as well as the Isle of Man's."
The company was one of 10 or 11 firms to file applications to operate an Internet casino regulated by the island government, Feldman said.
Applications were due last spring, and the Isle of Man is expected to select three companies to license in September.
MGM Mirage's interest in a foreign Internet casino comes as state gaming regulators begin to tackle the question of whether to regulate Internet casinos and federal lawmakers propose anti-Web gambling bills.
"Because of conservative members of Congress hell-bent on controlling individuals and their actions, it's no sure thing that Nevada will ever be able to allow Internet casinos," Feldman said.
Nevada Gaming Commission Chairman Brian Sandoval said MGM Mirage told state regulators the company planned to apply for the Isle of Man license.
"MGM Mirage assured me they wouldn't accept wagers from American citizens or minors, and that they'D stay in compliance with U.S. and Nevada law," Sandoval said.
Sandoval noted that Nevada regulations don't prohibit MGM Mirage or any other state license-holder from operating Internet casinos regulated by foreign jurisdictions.
"But if an American citizen were able to make a bet on the site, (MGM Mirage) would be subject to discipline in the state of Nevada," he added.
The U.S. Justice Department has considered Internet gambling to be illegal from within the United States because of a 40-year-old federal law designed to outlaw interstate betting on sporting events via the telephone.
The Isle of Man plans to pick companies already licensed to operate land-based casinos, he noted. Those companies would be reluctant to lose their significant investments by risking their licenses to operate brick-and-mortar casinos by violating rules in those jurisdictions.
A knowledgable source said five of the initial Isle of Man license applicants were from the United States, but declined to identify the applicants.
Sandoval said no other companies had informed him of an Isle of Man application.
Harrah's Entertainment, Mandalay Resort Group, Station Casinos and Boyd Gaming Corp. executives said Friday their companies had not applied for the licenses.
Park Place Entertainment spokeswoman Debbie Munch failed to reach top company executives Friday who could say whether their company is interested in an Isle of Man license.
Wynn Resorts spokesman Billy Vassiliadis failed to return an afternoon phone message seeking comment.
MGM Mirage Chairman Terry Lanni has been an outspoken advocate of U.S. regulation of Internet gambling, a fact noted by Internet gambling expert Mark Balestra, vice president of publishing for the St. Louis-based River City Group.
"Lanni's been very clear about what he wants to do, and I'm not surprised they applied for a license," Balestra said. "While the Isle of Man plans tougher regulations than the Caribbean jurisdictions, I don't think the technology exists to keep any Internet casino operators in compliance with Nevada law."
A large percentage of the companies offering Internet betting are located in the Caribbean, where they escape the oversight of major world governments.
Nevada lawmakers recently approved a bill allowing the state Gaming Commission to develop rules to let Nevada casino operators operate Web gambling sites.
The five-member panel must find that technology exists to prevent people from betting in countries and states where Internet gambling is illegal. The technology must also be able to prevent children from gambling.
Federal lawmakers have also recently targeted Web betting.
Sen. Jon Kyl, R-Ariz., and Rep. Bob Goodlatte, R-Va., propose to outlaw Internet betting.
Rep. Jim Leach, R-Iowa, and Rep. John LaFalce, D-N.Y., have introduced a bill that would limit the ability of online casinos to accept credit cards or electronic checks for customer wagers.
Balestra noted the problems Las Vegas-based American wagering had in 1999 with its Australian-based Internet sports betting subsidiary, Megasports Australia.
Nevada Gaming Control Board agents were able to place wagers on the Web site from within the state's borders. The company paid a $10,000 fine and last year agreed to sell the operation.
"With what MGM Mirage has at stake in Nevada and elsewhere, they'd be risking an enormous amount," Balestra said. "I can't imagine every state (MGM Mirage is licensed in) will approve of the company operating an Internet casino from the Isle of Man."
The Isle of Man is a 220-square-mile island in the Irish Sea.