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  Gambling News - May 2005  

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

In an attempt to compete with the online gambling industry, lobbyists for the Bay State’s racetrack businesses have been pushing for years for slot machines, but they have, thus far, been unsuccessful. Meanwhile, anyone in the state wanting to try his hand at gambling can, from the convenience of his home, flip on his computer and go to any one of a dozen ore more online casinos. From the online casino sites, players can then choose from a variety of betting games such as bingo, blackjack, craps, poker, roulette and more.

Consequently, racetrack operators are bemoaning the day that the Internet started to catch on in the gambling industry. Internet gambling is slowly but surely luring gamblers away from 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 doesn’t seem likely to stop anytime soon.

While the United States Government has taken the position that Internet gambling is illegal, basing this position on the 1960’s era Wire Act, which prohibited the use of phone lines for placing wagers, 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. 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”. 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.

Representative David Flynn (D – Bridgewater) intends to champion efforts to make online gambling completely illegal in the state, saying that “It’s running rampant right now and it’s hurting us”. Speaking of the damaged caused 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”.

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 too. In contrast to the racetrack industry, which is highly regulated, TV and online gambling allow unlimited betting worldwide. As Gary Temple, assistant manager at Raynham-Taunton said, “they’re actually bookies, there’s no regulation and they’re killing the racing industry which is so regulated”.

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 the popularity of Internet gambling is already too strong a force to eliminate altogether and the racetrack business will continue to suffer.

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