Gambling News - May 2005 Edition

"Don't Bet on It: Tracks Decry Offshore Derby Gambling"

Can Internet gambling spell death knell for horse racing?

Anyone in the state of Massachusetts wanting to try his hand at gambling can do so from the convenience of his home. He just has to switch on his computer and log in at any one of a dozen or more online casinos. From the online casino sites, players can then choose from a variety of betting games such as blackjack, craps, bingo, poker, roulette and others.

Racetrack operators are bemoaning the day that the gambling industry discovered the Internet. Internet gambling is definitely attracting gamblers away from the racetracks and, with many of the online casinos offering between 10% to 15% cash rebates on all bets, the trend toward betting online instead of at the racetracks is going from strength to strength and looks like it will continue.

Meanwhile lobbyists for the Bay State’s racetrack businesses in an attempt to compete with the online gambling industry, have been pushing for years to allow slot machines on racecourses, but so far they have been unsuccessful.

Taking the attitude that Internet gambling is illegal in terms of the 1960’s era Wire Act, which prohibited the use of phone lines for placing wagers, the United States Government law enforcement officials have been reluctant to go after individual gamblers. This ultimately translates into the loss of billions of dollars to offshore gambling casinos. Analysts of the Internet gambling industry estimate that there will be as much as ten billion dollars bet online this year, nationwide – all of which is tax-free. As Raynham-Taunton Greyhound Park owner, George Carney, said regarding the impact that online gambling has had on his business, “We’ve got one arm tied behind our back and both legs shackled.”

Representative David Flynn (D – Bridgewater) is going to champion efforts to make online gambling completely illegal in the state. He says that “It’s running rampant right now and it’s hurting us.” Speaking of the damaged to the employment rate in the state, Flynn also stated, “I think we’ve been very lax as far as protecting this industry that employs more than 6,000 people. We’re really promoting the death knell for racing and that’s sad.”

In contrast to the racetrack industry which is highly regulated, TV and online gambling allow unlimited betting worldwide. Online gambling isn’t the only threat to the racetrack business as satellite TV also allows gamblers to set up wagering accounts and bet on live racing from home. As Gary Temple, assistant manager at Raynham-Taunton said, “They are actually bookies!. There is no regulation and they’re killing the racing industry which is tightly regulated”.

The popularity of Internet gambling is already too strong a force to eliminate so as time passes the racetrack business will continue to suffer. Actions recently taken by the Government to go after online casinos in Antigua and Barbados have some in the racetrack industry hopeful, but most fear that Internet gambling has stolen the market.

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