Poll: Individual States Should Decide iGaming Regulation

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Friday, March 7th, 2014 | Written by Stephen Smith

A survey released on February 3, 2014, has found most people are against a federal ban on online gambling and are overwhelmingly in favour of the current state-by-state approach on the issue. The Coalition for Consumer and Online Protections (C4COP) released survey claims three-quarter of voters believe individual states should have the right to decide whether or not to legalize and regulate online gambling, with 57% of the 1,000 people interviewed by telephone coming out against a Congressional ban.

The North Star Opinion Research also found most US citizens believed prohibition did not work, and that it would likely result in an unsafe illegal black market lacking adequate consumer protection. Highlighting the report’s finding, an overwhelming 70% of interviewees agreed that:

“I may not personally engage in online gaming, but I support the rights of other Americans to do so as long as the games are fair, provide regulations to protect children, and raise tax revenues for state and local projects.”

C4COP a counter to CSIG

In recent months, Sheldon Adelson’s Coalition to Stop Internet Gambling (CSIG), an anti-online gambling group funded by the 80-year-old billionaire, has been disseminating information on the so-called ills of online gambling. Amongst the casino mogul’s main claims against internet wagering at either a federal or state level is that it could encourage underage gambling and that criminal organizations and terrorists could use it for money laundering, and other illegal activities.

In response to the Adelson’s crusade against internet gambling, a consortium of gaming interests subsequently formed calling themselves the Coalition for Consumer and Online Protection (C4COP), and vowing to counteract Adelson’s team at every turn. The C4COP enjoys the overwhelming support of the American Gaming Association (AGA) and the Poker Players Alliance (PPA), as well as numerous prominent political operatives, including former Rep. Mary Bono (R-Calif.) and former Rep. Mike Oxley (R-Ohio).

Soon after its establishment, the C4COP subsequently released the results of its Online Gaming survey, dismissing many of the claims and messages sent out by Adelson and his cronies. The survey, entitled ‘Key Findings from National Survey of Registered Voters Regarding Online Gaming,’ was conducted by Republican polling company North Star Opinion, whose political party has traditionally been opposed to online gambling. However, C4COP enjoys support from both Republicans and Democrats, highlighting the status of online gambling as a bipartisan issue.

Survey contradicts Sheldon Adelson’s message

Contrary to the beliefs of anti-online gambling lobbyist, such as Sen. Lindsey Graham who would like to restores the Wire Act and introduce a bill banning online gambling, online gambling proponents insist prohibition is more likely to lead to a situation in which unregulated offshore operators enter USA’s grey market at will, offering little to no consumer protections.

That belief is echoed in the new survey’s findings, with 63% of people believing that prohibition would be ineffectual, and 75% saying that politicians should be more realistic and exercise common sense.

“The American public doesn’t want Congress to pass a sweeping ban of all online gaming. A nationwide ban would put more Americans at risk online, and allow the current overseas, black market gambling operations to thrive,” explained C4COP spokesperson Alison Harden Siciliano.

Needless to say, a federal ban would also decimate the nascent online gaming industries of the three regulated markets of New Jersey, Nevada and Delaware, all of whom have failed to register the massive uptick in problem gambling predicted by alarmists. Moreover, as these markets continue to operate without a single incident being reported, the scare tactics employed by Adelson and other opponents are more likely to be seen for what they really are, namely an attempt to prey on people’s fears.

Online gambling will cannibalize casino gambling

Whereas the debate over legalizing online gambling continues to center around moral issues, economics has always been the real driving force behind resistance, with brick-&-mortar casinos concerned about possible cannibalization of their live gambling revenues. Once again, the markets of Nevada and New Jersey are helping to slowly put this myth to bed, and as Boyd Gaming CEO Keith Smith recently stated when talking about New Jersey’s online gambling industry:

“About 85 percent of our online players have not had rated play at Borgata in at least two years, showing there is little overlap with our land-based business. Online gaming is growing our database, creating a long-term opportunity to market Borgata to an entirely new group of customers.”