States Prepare to Bet the House on Online Gaming


Originally published in Business Law Today - April 2012.

In recent years, cash-strapped states have begun to seek alternative means of generating revenue and boosting state coffers––including exploring expanded gaming. For some states, this meant the legalization of casinos, once considered the exclusive territory of Nevada, Atlantic City, and the tribal authorities. However, the frontier of expanded gaming stretches well beyond casinos and slot machines. In particular, the online gaming, or iGaming, industry is booming. According to the American Gaming Association’s (AGA) white paper: Online Gambling Five Years After UIGEA, global online gambling revenue in 2010 was nearly $30 billion, with roughly $4 billion originating in the United States.

Recently, the United States Department of Justice issued a legal opinion indicating it may be reversing its long-standing opposition to online gaming under the Wire Act, causing several states to move to seize new gaming territory––and the considerable tax revenue that it could generate.

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