Update: Great Boost for Reid's Bill

American Gaming Association supports the bill Nevada Senator Harry Reid's bill for legalization of online poker in the US has received another important boost on Dec 10, when previously neutral American Gaming Association assessed that the bill includes solid oversight and consumer protections. "Current online gambling laws do not provide these safeguards, leaving players and the system open to fraud, cheating and other illegal acts," it was added by the group's chief Frank Fahrenkopf. Over 440 commercial land casinos are represented by the AGA, and all of them account in excess of half the billions in gambling revenues generated in the United States each year. According to Fahrenkopf: "This is tough law-and-order legislation that puts in place a solid regulatory framework and legal oversight that will prevent illegal activity and protect the estimated 15 million Americans who already are playing poker online. "Ours is a unique industry in that it wants tough regulatory control and strict law enforcement oversight, which ensures the integrity of our business and protects consumers. Current online gambling laws do not provide these safeguards, leaving players and the system open to fraud, cheating and other illegal acts." It was reported by the Associated Press news agency that the Reid bill proscribes a two-year period in which only existing casino companies - either commercial casinos already approved by various states or licensees approved by American Indian tribes - will be licensed to operate online. In the first three years, this popular pastime will be allowed only for the US-resident gamblers, and applicant sites now offering online gambling would have to shut down their US operations within 30 days of the bill's passage or risk being barred from ever winning a license. The position that there should be no expansion of the legalization initiative to other gambling types, usch as casino games, evidently remains in Reid's books, as he stated last week: "I still have serious concerns about legalizing the broad range of casino-type gambling through the Internet. The bill I am working on would make other types of Internet gambling clearly illegal, while increasing penalties and strengthening the ability of law enforcement to shut down illegal sites." If the bill is passed, it will strongly benefit one of the major supporters of Reid's re-election campaign, MGM Resorts International, which could generate $100 million to $200 million per annum from related earnings. Another major Reid contributor, formerly Harrah's Entertainment - now Caesars Entertainment Corp. – will also score some benefit, as the owner of the World Series of Poker, the world's richest and most popular series of live card tournaments which online companies support via satellite tourneys.