Gambling News - May 2005 Edition

"Online Casinos Contribute to Waning Popularity of Massachusetts Racetracks"

The appeal of online gambling is too fierce for traditional style racetracks to compete with.

Owners and promoters of Massachusetts’ racetracks are trying to make it legal for the racetracks to install slot machines on their premises. They hope that this will help to bring back some of the popularity of the racetrack industry. So far, however, their efforts have been in vain. Also many people in the industry feel that even if slot machines were permitted, there is no guarantee that their presence on the racetrack premises would bring back customers. They feel that a simple step such as installing slot machines will not help the racetracks compete with the convenience, variety and attractive promotions and rebates of online gambling.

Like most racetracks across the country, racetracks in Massachusetts are feeling the predicament from the competition with the online casino industry. While online betting continues to grow in popularity, the attractiveness of traditional brick-and-mortar racetracks continues to decline. It appears that the appeal of online gambling is just too fierce for traditional style racetracks to compete. Not only is the convenience of Internet gambling a large draw, but the variety of rebates and promotions that most online casinos offer makes Internet gambling much more attractive.

The majority of online gamblers on the internet, in spite of the fact that online gambling is illegal in the U.S., are residents of the U.S. The United States, in terms of the law, takes the position that online gambling is illegal, but law enforcement agencies do not go after individual gamblers.

The U.S. has gone after the operators of online casino sites, basing their case on the 1960’s Wire Act, which prohibits the use of phone lines for placing wagers. But the jurisdiction of the Wire Act is questionable and unless the United States takes a stronger position against Internet gambling and actively prosecutes those involved in all aspects of the industry, players as well as operators, traditional racetracks and all forms of land-based gambling will continue to come in a poor second.

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