Will American Gaming Association Support Online Gambling?

The question raised by many online gambling insiders is which side of the debate the AGA took.

The American Gaming Association reported that it spent $386,000 in the fourth quarter of last year on lobbying expenses, primarily involving Internet gambling. The question raised by many online gambling insiders is which side of the debate the AGA took.

The AGA represents the largest of the land casino operators and is dominated by the big Las Vegas Strip companies. Historically, the AGA threw its power behind efforts to hinder and block online casinos, as they were viewed as competition.

But the economic crisis has changed some opinions. AGA head Frank Fahrenkopf noted that several members had come around to the idea that legalized and regulated online gambling is the right way to go.

Some big casino brands figured that Internet gambling would be the easy way for them to continue expanding without the monstrous financing necessary to keep one-upping each other's land casinos and resorts. Others remain adamantly against online casinos.

So which way did the AGA lobby? Support was given to Nevada Representative Shelley Berkley's bill to study the possible advantages of online gambling in the US. Some gaming insiders think the bill is a delaying measure designed to approve Internet gambling, but only after the land casino operators have time to prepare to enter the field.

The AGA states in its disclosure form that it also lobbied on legislation that would regulate online casinos, but doesn't say what action was backed. Bill Forster, a gaming industry observer, says, "The AGA will only push for legalization when it decides such a change will profit its members. That time is near, but the group will stall if need be to make sure foreign operators don't enjoy a head start."