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Total annual wager on mobile casino services is expected to pass $5 billion by 2012, according to a new report by Juniper Research. According to author Dr Windsor Holden, “Many online casinos are now moving into the mobile environment, while bookmakers such as Ladbrokes and Coral have partnered with leading applications providers to launch own brand mobile casinos. Furthermore, the recent success of casino products from mobile-focused companies such as Probability demonstrates the latent demand for these kinds of services.”
However, the report cautions against over-optimism, observing that, recent deregulation notwithstanding, in many markets, including the US, remote casinos remain prohibited.
“While it is possible – even probable – that we will see some form of regulatory reform that will permit location-based, mobile casino services in the US by the end of the decade, casino services – mobile, online or otherwise – are illegal in a number of territories and are likely to remain so for some time,” said Holden.
“Given the stringent penalties which can be imposed on unlicensed service providers, those wishing to deploy casino-based or other gambling services must ensure strict compliance with local legislation.”
Pro-Online Gambling Group Argues Unfair Burdens of UIGEA
Proposed rules to prevent Internet gambling would place a high burden on U.S. financial institutions, according to an analysis published by a pro-online gaming group. The Safe and Secure Internet Gambling Initiative announced an advisory report from law firm Alston & Bird on Monday that concludes new rules for Internet gambling place unfair burdens on financial institutions.
The national firm found that, under proposed rules that support the Unlawful Internet Gambling Enforcement Act of 2006, U.S. residents would be able to circumvent regulations and continue gambling online by processing their transactions through foreign banks in jurisdictions where Internet gambling is legal.
“The proposed rules create an unprecedented and unwieldy regulatory burden on the U.S. financial services sector,” Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative, said in a prepared statement. “U.S. financial service companies are being left to interpret ambiguous state and federal gambling laws, which do not clearly differentiate between legal and illegal Internet gambling activities or transactions, and then implement unreasonable and costly solutions to achieve compliance.”
The pro-gambling group supports legislation that would regulate and tax Internet gambling, specifically the Internet Gambling Regulation and Enforcement Act and the Internet Gambling Regulation and Tax Enforcement Act. The companion bills would allow Internet gambling but require operators to obtain licenses, take precautions to prevent underage and compulsive gambling, and ensure safety and integrity of financial transactions.
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