LAS VEGAS NEWS AND VIEWS AROUND THE TOWN

Online Casino and Internet Gaming

Las Vegas city officials for some time have been considering another opportunity for the city to lend its name and official seal to an Internet gaming venture in exchange for a share of the profits. City officials have been in discussions with a San Diego-based software company, about a possible Internet gambling partnership.

Las Vegas’ first controversial Internet gambling business opportunity fell through in November 2000 when Mayor Oscar Goodman recused himself from voting on the matter because of a perceived conflict of interest.

One of the problems with regulating Internet gaming has been finding a way to ensure that gambling sites aren't accessed by minors and by people who live in jurisdictions where gambling is illegal. The software developer says it has developed technology to identify the geographic locations of customers, allowing the online casino operator to exclude gamblers from jurisdictions where online gambling is not permitted.

The state of Nevada approved legislation permitting state casinos to set up shop online, however, operators would be limited to accepting bids from those within state lines and in countries which allow online gambling. It could be several years, though, before the first Vegas-sanctioned casino appears online.

The Las Vegas-based MGM Mirage has applied for a license in the U.K. which would allow it to open its virtual doors to the millions of online casino patrons throughout the world. The license would be sanctioned by the semi-independent Isle of Man, located off England's western coast in the Irish Sea, and could be the prelude to a flood of similar applications filed in the U.K. hotbed.

The MGM Mirage is one of 10 companies which have filed applications with the Isle of Man, but they are cautious not to jeopardize Nevada's offer. The state's gaming commission will certainly keep a close eye on any Nevada casino that begins operation outside the country, and any issues that are cause for concern could impact its chances of approving a license at home.

Mirage spokespeople have said that they will not accept any bets from American residents, despite the fact that more than half the online gambling community resides in the U.S.

If they should accept bets from minors or American residents, however, they would be subject to stiff penalties by the state's gaming commission.

The U.K. is widely expected to be the hub of online gambling development in the months and years ahead. Many of the casino industry's leaders call England home, however, because of high taxation rates on sportsbooks and online casinos, most fled to foreign countries for financial relief in small Caribbean countries. The U.K. legalized online sportsbooks earlier this year, and is expected to do the same with Internet casinos in the near future, after finally coming to grips with the obvious financial benefits it could reap from regulating the booming industry.

With financial restrictions no longer an issue, many England based operators are expected to return their business to home soil and will undoubtedly be joined by foreign competitors such as the MGM Mirage, amongst others.