With the number of Internet users and the amount of money they spend projected to significantly increase in the next few years, the prospects for cyberspace gambling are great – especially for governments that cash in early.
That was the word given by experts at the first day of the V.I. Casino Control Commission’s Internet gaming seminar at St. Croix’s Cormorant Hotel Thursday. The seminar panelists include Anthony Cabot, an author on Internet gaming from a Las Vegas-based law firm; Gary Collins, an attorney in Antigua and chairman of that country’s Gaming and Betting Committee; and Frank Catania, an attorney and former director of New Jersey’s Gaming Enforcement Division.
Cabot noted that the technological revolution is still in its infancy and that advances will mean more people will have greater – and easier – access to the World Wide Web. And in the case of online gambling, that means a person being able to view the odds of the "big game" on his or her cell phone or being able to gamble in the comfort of his or her own home via a Internet-equipped TV.
Cabot said that by 2005, 91 percent of homes in the U.S. will be hooked up to the Internet, and not necessarily through a computer. Almost three quarters of those homes will be able to go online through their TV sets.
"By 2005, anybody who buys a TV will have Web access," he said.
And in light of the fact that in 2000, some $2.2 billion was spent on Internet gambling and more than $10 billion projected by 2005, Cabot said it is a growth industry.
"It’s a vastly under-served market with huge potential demand," he said. "It should exceed the entire gross revenues of all the casinos in the state of Nevada."
Those numbers are not lost on at least 52 governments around the world, Catania said. From Antigua to Canada and Australia, governments are cashing in by sanctioning some type of Internet gaming.
"Regulations at this point range from nonexistent to regulations similar to the regular gaming industry," Catania said.
He added that some jurisdictions charge fees for preliminary investigations of the prospective Internet gambling operator – of which there are about 350 world wide – to charging for a simple business license.
The latter occurs in some Central American countries where there is no regulations for operators of Internet gambling sites, "and it’s suspect," Catania said.
Internet gambling varies from sites where people can bet on sports to traditional casino games like blackjack, slots and poker. Most of the sites are operated outside the U.S.
Australia, Antigua, Greece and Monte Carlo have legalized on-line gambling. In 1998, Australia became the first large country to develop and enact a player-protection act. In Antigua, operators of Internet gambling sites are subject to a background check and a licensing fee of up to $150,000.
In the U.S., however, Congress is debating whether on-line gaming should be made illegal. The concerns include the availability of gambling to children and teens, the problems posed for adults with gambling addictions and the opportunity for illegal activity such as money-laundering and fraud.
As for the Virgin Islands, Eileen Petersen, chairwoman of the CCC, said the seminar was intended to inform the community about the pros and cons of Internet gambling. Currently, the status of such gambling is not illegal under federal law, but that could soon change.
"The question is, is the Virgin Islands going to be ready either way?" Petersen asked. "If it’s not going to be illegal, are we ready to jump in?"
That concern was voiced by Michael Bornn, a financial advisor and former V.I. tourism commissioner in attendance. He said the territory acted on its own laws regarding land-based casinos after the initial boom on the mainland. A similarly slow response to the prospects of Internet gambling could place the territory in the back of the pack.
"I look at this with an open mind," said Bornn. "It’s obviously a growth industry."
The seminar continues Friday at St. Croix’s Cormorant Beach Resort from 9 a.m. to 1 p.m.
