Online Gambling Operators and Their Not So Squeaky-Clean Past

Online Gambling Operators and Their Not So Squeaky-Clean Past

Recently, there has been a lot of buzz concerning new developments on the online gambling front in the United States. Earlier this week, PokerStars partnered up with Resorts Casino Hotel and applied for a license to operate Internet gambling in the state of New Jersey. Not to mention, all 12 Atlantic City Casinos applied to New Jersey authorities for licenses to operate online gambling sites.

Legalized online gambling is scheduled to open up in the state of New Jersey later this year. New Jersey Governor, Chris Christie, projected that the state will bring in $160 million by taxing online casino users in the upcoming fiscal year. In order to do so, lawmakers must license companies that offer online gambling. One of the challenges facing the legalization of online gambling is that many of the companies that know how to best run Internet gambling enterprises have closets full of skeletons.

PokerStars represents a powerhouse in the arena of online gambling. According to Jim Quigley, president of the market research group U.S. Gaming Survey, it is “the one company that everyone in the business of Internet gambling should try to emulate. They have the largest market share, the most capitalization, and by far the best poker product.” But the American Gaming Association, a trade group representing casinos, contested that PokerStars’s “deceit, chicanery and the systematic flouting of U.S. law” should disqualify it from doing business in New Jersey.

Several years ago, PokerStars basically got kicked out of America. The U.S. government sued the company for operating an illegal gambling business, shut down its website, and arrested PokerStars’ founder. Thereafter, the rich online poker market in the States effectively ended.

This isn’t necessarily about a single company. Indeed, it’s difficult to find an online gambling company without at least some skeletons their closet. For example, Bwin.party (BPTY) recently settled a law suit with the state of Kentucky, which had sued it for taking illegal bets. Caesars Entertainment, has fought for legislation in Illinois that would ban companies that have taken online bets in the last 10 years. Oddly enough, this would include 888 Holdings, the Gibraltar-based gambling company it is teaming up with elsewhere in the U.S.

About The Author

I made my entrance to online gambling in 2004 in an attempt to understand the psyche of the casino goer. I've spent prolonged periods delving into the industry and its inner functions and continue to do so at VegasMaster every day. My research and experience has given me insights into gambling that I hope you'll benefit from.

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