The biggest issue in the online gambling industry since its creation has been the traditional anti-gambling stance adopted by the United States. Controversy has reigned since the industry’s revenue increased dramatically over recent years. In 2005 over $10 billion dollars was recorded, the majority of which was derived from the U.S. Many online gambling operators as a result of the U.S. government’s position have sought out more welcoming hosts such as Costa Rica and Gibraltar, while more recently some have made their fortunes by floating on the London Stock Exchange.

Although the legality issue continues to hound the industry there seems little doubt that online gambling is here to stay, despite the efforts of Arizona Senator Jon Kyl and his contemporaries. 2006 will see further attempts by Kyl to outlaw online gambling in the U.S. on the basis of social and moral grounds.

However while Kyl has attracted the support of a strong anti-gambling lobby, an equal amount of pressure is being directed toward the government to regulate and legalize the industry. Adherents cite player protection and employment, growth and investment opportunities as major benefits of legalization. Their argument is a strong one. Even opponents of legalization admit that online customers in the U.S. spend 10 times more on online gambling than on pornography.

Key players in the industry to watch in 2006 are SportingBet’s chief executive officer Nigel Payne, along with MGM Mirage chief Terri Lanni and the Harrahs Entertainment Group. Lanni has already stated that if online gambling was legalized in the U.S. MGM Mirage could make $12 billion in revenue each year. Harrahs, with its access to millions of casino fans worldwide, could also reap huge profits.

Other supporters of legalization include Steve Wynn of Wynn Resorts and Sheldon Adelson of Las Vegas Sands. Both entrepreneurs are currently focussing on the Chinese market of Macau, however have expressed keen interest in joining the online industry.

Among the boldest predictions for 2006 is that online gambling will be fully regulated by the U.S. by 2007. Land based casinos will be quick to join the online world and revenues will provide a healthy form of taxation for the U.S. government.

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