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American legal issues on internet gambling are reaching a tipping point

Posted 1/25/11 : The respected internet gambling company analyst Michael Campbell, who works for the Daniel Stewart broking company, has issued a bullish opinion that the massive US internet gambling market will sooner or later embrace online gambling legalisation in one form or another.
Campbell says that the US scene has changed significantly in recent times with increasing pressure from major land gambling companies and the difficult economic situation influencing events. Consequently, several legalisation attempts at both federal and state level took place late last year.
Whilst some of these did not bear fruit, moves in New Jersey and California had been more successful and the market was rapidly reaching a tipping point, he opined. If individual states introduced legalised internet gambling, it would likely have a domino effect on other states, he said.
Playtech and Party Gaming have the greatest chance of landing business-to-business deals in a potentially lucrative US online gambling market, Campbell opined.
“Bricks and mortar casinos have endured a torrid time during the recession and are seeking to explore new ways of generating income,” Campbell said.
“Our view is that online gambling will move ahead whether legislative change happens at Federal or State level or a combination of both.
“Poker may be the only product vertical to pass at Federal level, however we believe that individual States will legalise online casino and poker at state level, with New Jersey and California leading the way, we believe will cause a tipping point, whereby other state will follow.
“We expect to see legislative change implemented and licenses granted in 2011 or early 2012.”
The analyst states the US gambling market is estimated at around US$90 billion annually, primarily consisting of the commercial casinos in Las Vegas in the state of Nevada, and Atlantic City in New Jersey - these key gambling centres account for 37 percent of the total market.
Campbell demonstrates the scale of the opportunity with two key stats.
Firstly he points out that the global online gambling market would be worth an estimated US$30 billion per year, and it is estimated that the US would account for around US$7 billion, or 27 percent of that market.
Furthermore, before it was banned, US online gambling actually accounted for about half the global market. "The scope for growth should legislation follow in the near future in our view is immense.”

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