Legal US egaming? Get out your chequebook
Despite optimisim among many in the industry about Barney Frank's bill to legalise online gambling in the US, the outlook for the bill is poor, says Chris Krafcik of US egaming consultancy BolaVerde Media, for one main reason: lobbying dollars...
MANY WONDER WHETHER 2010 will be the year Washington, DC says ‘yes’ to regulated Internet gambling. (My take is ‘maybe so, but probably not.’) If one thing is clear, however, it’s this: 2010 will be the Year of the Lobbyist.
After combing through hundreds of filings in the Lobbying Disclosure Act Database, my consultancy business, BolaVerde Media Group estimates that, for the third quarter of 2009, internet gambling lobbying spend came in at approximately $3.65m, up 50 percent over the same period in 2008.
A big reason for the uptick is Harrah’s. The company, which, according to our estimates, spent a little more than $6,000 lobbying egaming in Q3 2008, shelled out approximately $875,972 in Q3 2009.
UC Group, the biggest Internet gambling spender on DC’s Capitol Hill, also increased lobbying outlay to $727,424 during Q3 2009, up 20 percent over Q3 2008.
What made Q3 2009 such a money magnet?
Well, if you’re the world’s largest casino operator, there was the introduction of a Senate bill that would regulate and tax Internet-based games of skill, including poker.
If you’re an advanced deposit wagering operator concerned about transaction over-blocking, or a member of the financial services industry losing sleep over liability, there was a petition to delay the UIGEA’s compliance deadline.
Although there were three fewer lobbying parties in Q3 2009 “ 32, compared to 35 in Q3 2008 “ most of them spent more (and a few, like Harrah’s, spent a lot more).
But what does the egaming industry have in the pipeline, now? One House bill with 64 co-sponsors (of the 435 voting members of Congress), and a Senate bill with none.
When Internet gambling is what you eat, sleep and breathe “ as it is for many of us “ it’s easy to think nebulous facts like a Democratic majority or a poker-playing president mean bright and shiny things are ahead.
But it’s useful to remember that Internet gambling regulation is still, at best, a marginal political issue. Think of it this way: The world’s biggest drug maker, Pfizer, spent more lobbying in Q3 2009 ($5.4m) than egaming supporters, observers and opponents combined did during the same period.
If, politically, Internet gambling regulation is going to matter “ really matter “ it’s going to cost a lot more money.
And the lobbyists are there, waiting for you to spend it.
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