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Caesar’s: Intrastate vs. Interstate Online Gaming

15 March 2011 by admin

I have a feeling that Caesar’s Entertainment Corp. will be the bane of every state level bill to legalize and regulate online gambling. For one thing they seem to loathe the very idea of intrastate online gambling, preferring to shoot for interstate online gambling.

Before we go any further, the differences between the two types of online gambling. Intrastate online gambling is when a state has legalized and regulated online gambling within its own borders thus allowing its residents to legally play in state licensed online gambling portals. Interstate online gambling on the other hand is when, and I do mean when, the federal government repeals the Unlawful Internet Gambling Enforcement Act (UIGEA), legalizes and regulates online gambling for the entirety of the United States, thus allowing its citizens to play in online casinos with federally issued licenses.

Now there is a reason behind Caesar’s turning their nose up at intrastate online gambling and is pushing for interstate online gambling. And that reason is ease and money. Caesar’s owns and operates forty brick and mortar casinos in the US spread out over several states; not to mention that they are the owners of the World Series of Poker (the most well-known of tournament poker series). For them it would be easier to set up online gambling portals for all of their casinos rather than only the ones who are in states that might approve intrastate online gambling. Not to mention that they want all of their casinos to have the same online gambling portals. For them, to have all forty casinos partnered with an online gambling portal they will be in line to receive a hefty chunk of the estimated $4 billion that the US online gambling market is worth.

“Our focus is not intrastate, our focus is interstate. It is federal, it is putting together an American, an appropriate regulation and licensing regime and taking the jobs and revenues going to foreign companies and bringing it back to America,” said Caesar’s senior vice president for communications and public relations Jan Jones.

Now here is the thing: if a state were to regulate online gambling on an intrastate level it would mean the creation of jobs within that state. So while there would not be a national creation of jobs, there would be jobs and revenue being taken back from foreign operators, which, according to Caesar’s is what they want to see. But the personal interest for them and the potential revenue to be had is too big of a lure, and so Caesar’s continues to push steadily, taking small steps, for federal interstate online gambling.

Now while I would very much like to see federally regulating online gambling in the United States, the conservative base may just be too big of a foe for Caesar’s to topple. So I think Caesar’s should heed some of my mother’s favorite advice to give: some is better than none. And in this country, some online gambling in the US is better than none.

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