Responding to the American Extension

While the move is viewed as a confidence vote of the online gambling industry, a welcome step of a proven player onto the evolving Internet market, it has also raised critical voices from European operators.

The competitors see the new venture, namely an American land based casino stepping into the online industry, as an effect of the Unlawful Internet Gambling Enforcement Act. The UIGEA, which was passed in the United States and forbids Americans from online gambling activities and transactions, is said to be protectionist in nature. If sites cannot compete in the American market, why can American companies compete overseas?

And compete they do. The US-based company is already active in land based operations in foreign markets. It has a strong footing in Asia, with a second venue about to open in Macau, China, and yet another one to open in Singapore down the line. Some around the industry suspect that the new venture is a sign that the company is about to take on online casinos as well. Others see it as learning the business, perhaps in preparation for the day that the US-market will open up.

If indeed the ban is motivated by protectionist sentiments, the overseas adventure might eventually serve as an argument that will convince the American legislators that the sites can be positive and profitable. Many operators would be willing to accept such future developments, but less inclined to accept a ban on the American market but American involvement in other markets, in China, Europe and elsewhere.