Developments in the Worldwide Gambling Industry

Gambling used to be the domain of Las Vegas and Atlantic City casinos, until a few people began to establish Internet websites catering to gamblers and bettors. These online casinos soon began to grow in size, stature and number. By the late 1990s, the online gambling industry was seriously challenging their brick-and-mortar counterparts for dominance of the global gambling market. In just a few years, Internet-based casinos have surpassed traditional casinos in terms of revenues.

While the operations of Internet-based casinos or online casinos are geared for the worldwide market, majority of the revenues earned in these casinos come from American gamblers. This has led to a confusing and highly controversial status of online gambling in the United States. In fact, the U.S. Congress has threatened to ban all forms of online gambling, whether the operations are based in the U.S. or not.

Gambling laws in the United States differ from state to state. Some states like Nevada allow most gambling activities in casinos and betting salons, while other states ban gambling altogether. Gambling activities which are legalized by a few states are highly controlled and regulated by the government, and revenues are taxed. The online gambling industry, however, is not regulated nor taxed by the U.S. government.

Seeing the fierce competition posed by online casinos, traditional casinos in Las Vegas began buying and building online gambling companies in a bid to increase profits. Today, there are several Las Vegas casinos that already own Internet versions of their casinos. These casinos are also in favor of legalizing online gambling, saying that regulation of the online gambling industry will make it easier for Americans to gamble online and also lower online casinos' operational costs.

The American Gambling Association is also in favor of legalizing and regulating online gambling. Online gambling regulation will enable authorities to keep track of gambling activities and to tax revenues earned from American citizens. Traditional casinos like MGM Mirage and Harrah's have taken the charge in petitioning the U.S. Congress to legalize online gambling.

The worldwide gambling scene has clearly shifted from the traditional, Las Vegas-style casinos to the virtual world of online casinos. The free nature of the Internet, the privacy and anonymity as well as the countless advantages offered by online casinos have enticed many gamblers to make the move from the bright lights of Las Vegas to the ease and convenience of online casinos. It remains to be seen if the online gambling industry can survive the problems facing it.