Online Casinos Blocked While "Account Wagering" Grows?

Kentucky race tracks continue to operate account wagering while online casinos are forbidden in the US, leading to the question as to what might be the difference between Internet gambling and the Kentucky computer betting.

If there is an epicenter for the hypocrisy involved in US policies for online casinos and Internet gambling, it surely lies in Kentucky. Even as the state attempts to seize 141 online casino domain names in a court action, the president and CEO of Keeneland, a Kentucky track and thoroughbred sales operation, talks of the expansion of "account wagering."

Account wagering means allowing US residents to open and fund an account, and then place bets from a computer drawing on the funds in that account. Payment is made back into the account, and the account owner can withdraw funds when he wishes.

To many people, this is called online gambling. However, somehow the US Department of Justice overlooks account wagering when it asserts that all forms of online gambling are illegal throughout the US.

Keeneland CEO and president Nick Nicholson told Ed Lane of the Lane Report that "the biggest change in the last 10 years has been the growth of account wagering, where people set up accounts and bet through their computer, Blackberry and/or their cell phones.

"Account wagering is off to a very good start; it’s the fastest growing segment of Keeneland’s handle right now," Nicholson commented.

Some gaming observers pointed out that market growth was certainly aided by prevention of competition from entering the picture, a condition online casinos hope to end with the passage of Barney Frank's bill ending the UIGEA ban.