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Las Vegas council to explore legality of Internet gambling
January 03, 2002
LAS VEGAS (AP) - The City Council has taken a cautious step toward making Las Vegas the first U.S. city to license and regulate Internet gambling.
Citing the need for new revenue, the council voted 6-1 Wednesday to study the issue.
"We would be derelict not to explore it," Mayor Oscar Goodman said.
The move could one day allow Internet gambling sites to use the city's name and its seal as part of their marketing efforts. So far, three companies have expressed interest.
The council directed the city manager and city attorney's office to research whether such a partnership would be legal and to consult with state officials about whether it's feasible.
The staff is expected to report to the City Council within 30 days.
Although the federal government considers Internet gaming to be illegal, Nevada is working on regulations that would let it become the first state to allow Internet gambling and capture some of the estimated $2.2 billion wagered worldwide over the Internet in 2000.
That figure is expected to exceed $6 billion in 2003, according to Christiansen Capital Advisors, which studies the industry.
A law passed in June authorized Nevada gambling regulators to craft rules allowing state casino operators to also operate Internet casinos, providing key conditions were met. The commission must decide that Nevada-based Internet casinos comply with all applicable federal and state laws.
Dennis Neilander, chairman of the Gaming Control Board, has expressed reservations about such a partnership, citing the potential for scandal if such a site could be accessed by children or other unauthorized users.
But others argue that Internet gambling is inevitable and that the only question remaining is how it will be regulated.
"The mayor senses that the ship is leaving, and he wants to be on it," said Scott Frost, chairman of the Technology Business Alliance of Nevada, a nonprofit organization that has approached the city about helping set up a regulatory framework. "Nevada has a chance to lead the regulation of a pristine gaming environment."
Frost said he supports the mayor's efforts, but doesn't think the city would generate as much revenue as it hopes.
"They could make a substantial amount of money, but it's not billions," Frost said.
Another possible obstacle could come from the gaming industry, which has frowned on new competition. Goodman acknowledged that without the support from existing "bricks and mortar" casinos, the city's cyberspace venture probably would be doomed.
"We understand the power of the gaming industry," he said. "And unless they also buy in, the odds of us succeeding would be severely diminished."
LAS VEGAS (AP) - The City Council has taken a cautious step toward making Las Vegas the first U.S. city to license and regulate Internet gambling.
Citing the need for new revenue, the council voted 6-1 Wednesday to study the issue.
"We would be derelict not to explore it," Mayor Oscar Goodman said.
The move could one day allow Internet gambling sites to use the city's name and its seal as part of their marketing efforts. So far, three companies have expressed interest.
The council directed the city manager and city attorney's office to research whether such a partnership would be legal and to consult with state officials about whether it's feasible.
The staff is expected to report to the City Council within 30 days.
Although the federal government considers Internet gaming to be illegal, Nevada is working on regulations that would let it become the first state to allow Internet gambling and capture some of the estimated $2.2 billion wagered worldwide over the Internet in 2000.
That figure is expected to exceed $6 billion in 2003, according to Christiansen Capital Advisors, which studies the industry.
A law passed in June authorized Nevada gambling regulators to craft rules allowing state casino operators to also operate Internet casinos, providing key conditions were met. The commission must decide that Nevada-based Internet casinos comply with all applicable federal and state laws.
Dennis Neilander, chairman of the Gaming Control Board, has expressed reservations about such a partnership, citing the potential for scandal if such a site could be accessed by children or other unauthorized users.
But others argue that Internet gambling is inevitable and that the only question remaining is how it will be regulated.
"The mayor senses that the ship is leaving, and he wants to be on it," said Scott Frost, chairman of the Technology Business Alliance of Nevada, a nonprofit organization that has approached the city about helping set up a regulatory framework. "Nevada has a chance to lead the regulation of a pristine gaming environment."
Frost said he supports the mayor's efforts, but doesn't think the city would generate as much revenue as it hopes.
"They could make a substantial amount of money, but it's not billions," Frost said.
Another possible obstacle could come from the gaming industry, which has frowned on new competition. Goodman acknowledged that without the support from existing "bricks and mortar" casinos, the city's cyberspace venture probably would be doomed.
"We understand the power of the gaming industry," he said. "And unless they also buy in, the odds of us succeeding would be severely diminished."
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