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Message: Online Gaming in USA

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Online Gaming in USA

posted on Oct 21, 06 07:59PM
Though Pegasus presumably derives the majority of their revenue from Europe (and Africa eventually?), the opportunity for increasing revenue by attracting players from the USA is something I am sure they would like once the opportunity can be realized. That said, and in light of the recent panic following the passage of the anti-gaming law here in the US, I thought this article from The Street.com was worth posting: "Online gamblers who operate in America have been given up for dead, thanks to passage of legislation to ban the practice. So the first bumptious declaration that these companies might somehow, someway be looking to find a way to fight another day did not get much play in the press this week. I had to go all the way to England -- to The Daily Telegraph in the U.K., where all the online-gambling officials not under house arrest in the U.S. are hiding beneath their mattresses --- to find mention of this possible declaration of counterattack in this intriguing little headline: "PartyGaming has not given up on U.S." What followed was a modest little article -- which we'll get to -- but the public's assumption that online gambling is permanently dead in America and the business media's underplaying of these fightin' words that maybe it's not -- seems indicative of opportunity to the Business Press Maven. First, let's back up. Personally, The Business Press Maven found online poker a healthier alternative to the traditional kind because he was a touch less likely to drink and smoke cigars when alone. Professionally, though, I see this as the ultimate test case of whether an industry assumed to be kaput because of government overreach can, in fact, survive -- even thrive. History is on the side of a comeback, from alcohol in the time of Prohibition to healthcare in the waxing years of Clinton. Anyhow, as I've said before, I think it's only a matter of time before a smart and dastardly approach (Offshore money orders? An American government controlled by a party that won't harness a gambling ban onto a pork bill?) put the online gamblers back in business. Online gambling officials, busy trying to stay out of American penitentiaries, have been scared to say as much publicly -- but Mitch Garber, the chief executive of PartyGaming, pulled up close: "Chaos brings opportunity, and this is an unbelievable opportunity." He added: "We still have 10 million customers in the U.S. with our software on their desktops or laptops. We should be looking at a way to maximize the value of those customers. We're not going to offer them online gambling, but we should be looking to offer them legal service." Garber might be acting coy here -- the software is still there, and we'll be back to deal. Or he might be looking to leverage the ruined portion of his business into something salvageable. Either way, should PartyGaming and 888 Holdings, which have lost so much of their value, really be given up for dead by the business media and shareholders alike? That gets The Business Press Maven's dreaded "Back of the Hand" award for the week."

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