Offshore Gaming Harmful to Regulated Internet Betting, Claim Industry Insiders
Recently, Nevada, New Jersey, and Delaware introduced online casinos in their states, leaving some to believe this marked the birth of the American internet gaming industry. However, it's important to note that online gambling had already been existing in the United States since the 1990s, even though the federal government banned such operations within the country. Today, a handful of offshore sites continue to illegally provide their services in the nation. Some experts suggest that the presence of these offshore sites hampers the development of regulated websites nationwide.
At a recent conference in Atlantic City during the East Coast Gaming Congress, various issues facing regulated gambling sites were brought to light. It was revealed offshore, unregulated sites are the primary method through which Americans place online bets.
"Internet gambling exists in all 50 states today," declared David Rebuck, Director of the New Jersey Division of Gaming Enforcement. "It's just not regulated."
Cracking Down on Offshore Sites
This declaration was made following a warning issued by the New Jersey Office of the Attorney General to five unauthorized online gambling sites urging them to stop promoting both regulated New Jersey sites and unregulated alternatives. Sites like RaketheRake.com were told they could face legal consequences if they failed to comply with these requests.
The letter sent by New Jersey Assistant Attorney General George N. Rover cautioned: "This letter shall serve as official notice that your website, by offering links to sites which may be offering unauthorized online gaming, may be promoting activity that is contrary to New Jersey and federal law. We request that you immediately remove any online gaming links that are not authorized under federal law or the law of any State. The State of New Jersey reserves the right to pursue appropriate civil or criminal sanctions against you in you fail to take the requested actions."
However, despite such efforts, a significant number of US residents continue to prefer overseas gambling websites. One reason could be their relatively user-friendly interface, particularly with regard to payment processing.
"People who come online have 20 minutes in the den," remarked Eamonn Toland, President of Paddy Power's North American branch. "They don't have three hours to work out payments. If you can't capture them quickly and easily, they'll just go watch a movie or go do something else."
The Sector's Infancy
Another issue of concern was the general lack of awareness of the legality of online gambling among New Jersey residents. Data from 888.com showed that only 10 percent of the state's residents are aware that online casinos have been made legal in their state.
Despite these issues, the general sentiment among industry experts was optimistic about the future of New Jersey's online gambling industry. Critics who dismiss the performance of regulated online gambling sites were called out by Richard Schuetz, California Gambling Control Commissioner, who likened their views to parents who complain that their five-month-old child doesn't speak any languages despite it being too early for such demands.
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