There are a lot of issues with legalizing and regulating slots gaming. The market right now is a hot one. It is quickly growing to a multi-million dollar market every month and legislators love that. They realize that slots’ gaming is one of the few activities that can reasonably bring in millions every month in tax revenue dollars. There are many different plans right now to expand slots gaming. One of the main ways is to give out state licenses to development companies. Companies in the market today know full well how to build state of the art facilities for wagering. Normally every state has a set number of licenses to hand out and those companies that get them, then have to contribute licensing fees and a portion of their overall income monthly. This is a great way for states to benefit. Most states are trying to maximize the number of licenses they have available. In addition they are also trying to bring slots to new locations like bars and pubs. Of course the same deal would apply—gaming companies would contribute a portion of their revenue to the state. Finally, states are also trying to combine racing and slots to form racinos. The goal of course is to bring in additional money, but also to save the market of racing that has been declining over the past few months.

There is an issue with uniform law though. Because there are so many different entities involved, they are being taxed at different rates. This is causing some confusion. For example, in Las Vegas casinos are normally charged anywhere from eight to nine percent of their revenue as tax. One issue that has arisen though is the fact that bars and pubs within the state also offer gambling games, but are not taxes at all. These establishments are charged a flat fee for the slots games that they have, which translates to about one to two percent of their revenue. Casinos operators are complaining that they aren’t under the uniform taxation with other locations for gambling. This is definitely an issue that has to be sorted out by state legislators in months to come, but it also is part of the growing pains of moving into a new market.

If you have ever wondered what areas are housing most gaming companies, then think offshore. All online casinos operate outside the US right now, but most of them are soliciting US customers strategically. It is no secret that the US market is a big one and companies all over the world are developing their own plans on taking advantage of it. Most gaming companies set up home bases at Curacao, St. Kitts, Grenada, Gibraltar, Cook Islands, Antigua or the Dominican Republic. The main reason for this is because these areas make it easy for them to operate. There are costs to building up a casino company and that includes licensing and fees. These countries by nature are built to make gaming easy. On the other hand, places like Ireland have been under attack recently due to their hefty licensing fees and are deemed “not casino-friendly” in past months. It seems to be a matter of the country officials getting too greedy. Sure they want a portion of the proceeds of the highly lucrative gaming world, but if they continue to build up costs so much they are going to quickly lose clients. That is already happening and a lot of companies have permanently set their offices up in other more reasonable countries.

Though all gaming companies are housed outside the US, that doesn’t mean the US legislators aren’t busy with the issue. Gaming companies are trying to solicit gamers, but they are ready to move in on the US market if it opens up. Not that it is likely to happen any time soon. It seems that the US is still under the UIGEA and though some legislators are making it a priority to change the rules, it isn’t happening just yet. In fact, now there are so many problems with the issue that it is expected that the US will shelf the issue for another two years. Some legislators are pushing for change, but they haven’t proven effective enough to bring about that change in terms of gaming. Expect the US to hold out for a longer amount of time. Though companies are going to solicit US gamers, they may or may not be able to accept them.
Part two coming next.

When you think of casinos in the US, normally you think of the centers like Las Vegas and Atlantic City. These are cities that have built much of their industries on gambling and tourism. Although they are the biggest and most well known, now things are changing in the world of gambling. In fact, almost every state these days is toying with bringing gambling laws in. They see the huge tax-revenue potential with gaming and want a cut. The recession left many states with few ways of managing financially and the deficits are huge. Because of this, it is going to take a few months for things to regulate and for states to find additional funding options. One problem is where are the funds going to come from?

The quick answer is to implement gambling—legally and regulated— into the state. Pennsylvania, for example, has just approved slots parlors. They are hoping that slots will bring in the millions of dollars needed to overcome state deficits in funding. When Las Vegas released its numbers last year it was surprising to find out that slots were the biggest and most reliable money-maker of all the games available. While high-rollers slowed down on the large-wager tables, gamblers continued to go into casinos to play the slots. Because of this research casinos throughout the country are trying to use slots as a money generating activity. They are hoping the millions expected will be channeled into the economy and help to bring it back from the recession. Though the recession is over, the financial aftermath is still proving to be difficult to overcome.

Right now research is showing that some form of gambling is legal in forty-eight of the fifty states. That is a huge number and that means that a wide range of legislators are hoping to capitalize on slots gaming. Only time will tell how reliable it is, but for now it seems like it is going to be a sure-fire way to bulk up state coffers. Without gambling, many legislators are arguing that there are few other avenues of finding the millions needed to handle the budgets.

Maryland has been making moves to bring in slot machines for over a year now. Like most other states, it is experimenting with the idea of using slots to fund the budget. Post-recession, all states are suffering from huge deficits and looking for money-generating ways to implement. Gambling and slot machines are a huge draw with people and states are hoping to regulate and legalize them in the near future. The move would bring in tax revenue from gambling. Just like tribal-owned casinos are taxed by the state, so would any form of gambling and its operators.

For Maryland, however, it’s been a long road so far and legalization is nowhere in the near future.  Legislators  from the Governor Martin O’Malley to Montgomery County Executive Ike Leggett said that gaming companies will move into the state quickly and the revenue from taxes and licensing. The state is proposing that any company moving into its borders would have to pay taxes and a licensing fee to maintain their operations. The projection is that together the two would bring in millions of dollars for state coffers.

Initially slot machines were supposed to help Maryland’s racing industry. They were hoping to convert racetracks into racinos, the common term for casinos combined with racetracks. Though earlier in the year it was thought that racinos would bulk up revenues, now the picture is changing. Only two gaming licenses have been given out so far so the projection of licenses bringing in $600 million, is drastically overestimated. Much of the problem is attributed to the recession. The recession caused a hike in the unemployment and left millions of Americans without funds.  This caused them to cut back on everything from necessities, to recreational activities like gambling. The cut in revenue is making it difficult for race tracks and casinos to sustain their budgets.

Maryland is just one more state that is struggling to implement its slots plan. Though the initial plan looked good on paper, only time will tell if it really is a viable plan. Legislators are making the push to bring slots into the state, but there may be more red tape for them to sort through before they can reap the benefits of slots gambling.

On November 4th the Gambling Control Board debated over Hollywood Slots request to bring a new type of slot machine to their business.  The board postponed their decision, saying they needed to investigate further. Executive director of the Gambling Control Board, Bob Welch brought the petition to bring “hosted” slot machines to the racino in Bangor. Welch explained that the machines will still be automated but instead of players placing money into the machines, a host employed by Hollywood Slots will do it for them.

The machines are a hybrid between standard slot machines and casino table games like blackjack and poker. Some board members, however, are saying that the definition of a slto nachine under existing law and includes the new type of machines. Board chairman George McHale said that it seems that nowhere in the law does it demand the gamer has to place money in the slot machine by hand. He agreed with Welch in that he believes there is no legal code to prevent the board from approving the new machines for use. Though both are adamant about the lack of definition to deny the application, there are other members who believe that there is cause for debate. Board member Peter Danton said that he considers the new slot machine a card game. Danton acknowledges that the gambling industry changes consistently, but would prefer if the state Legislature’s Legal and Veterans Affairs Committee made a decision. He believes they need to start with defining what types of machines are legal and what aren’t. He added, “Without some clarification, we could fall into the same problems that the UIGEA has..lack of definition and vagueness.”

Richard Arnold, another board member, also stated that he has some concerns. The  hosted slot machines can be played by up to 5 players at once. Though there are more players, each one would be playing the machine and not each other. Cushing Samp said that he also believes the Gambling Control Board should be making the decision and not handing it off to state legislature.

Currently the facility in question has about 1,000 slot machines. That number is not scheduled to change. The casino is looking to bring in additional tables including poker, roulette and backgammon. These changes, however, would require legislative action.

The Illinois Senate has recently approved three new slots casinos to expand gambling in the state. It seems as if the state is working hard to expand slots and hoping that projects will be funded. In particular transportation funding is a huge concern for the city. The deficit is also enormous and state budget cuts are inevitable. Without a large increase in revenue somewhere, the state has little to no chance of financial recovery as a result of the recent recession.

Lawmakers of Illinois are aware of how difficult the deficit will be to overcome. The Illinois Senate is aware of it and is making moves to welcome slot machines into the market. Casinos and supporters are hoping for a surge in votes for increased gambling and they are making the move to start the campaign process now. The Senate believes that as far as the voting for legalizing and allowing slots into the state goes, it’s the wording that will decide if its accepted or rejected by legislators. They are trying to craft a bill that has the right tone and wording for legislators to rest assured that the idea is well thought out and beneficial– not just a monetary gain.

The state of Illinois has been in the midst of debates over expanding slots gambling for some time now but approval has not moved into play because none of the bills introduced have ever gone as far as the House. Many believe that this year will be different however. There are bills that are ready for review and can adequately serve the voting public and the government.  The key difference between bills being introduced now and those of the past is that today’s bills are specific. They cite exactly what will be funded via slots revenue. In the past, bills were not thorough or detailed in terms of where money would be apportioned within the state budget. The recent collapse of a Minneapolis bridge is making the state of Illinois aware of transportation issues looming. the state has to make moves to avert a similar problem within their jurisdiction. The Senate’s recent approval of slots casinos and allowing riverboats to expand, the mean that the money to solve transportation issues could be on the verge of coming into the economy.

Another US state is looking for slots to save the day. This time it’s Illinois that is in the debate. State Governor Pat Quinn signed a deal that would bring more slot machines into the state. It’s no secret that almost every US state has a huge deficit to deal with. The aftermath of the recent recession has put budgets into horrible straights. The deficits for all states are huge and in the billions.  Most states are looking to gambling to help curb the problem and slots are the most viable due to their flexibility and popularity throughout the gaming communities. Illinois is looking to expand their current population of slot machines and bring in additional gambling tax-revenue dollars.

The bill signed by Quinn would allow thousands of slot machines to saturate the state of Illinois.  Restaurants and bars across the state would have slot machines installed. The governor is hoping the money coming in from the machines would allow the state to complete its major projects that have been cut due to the huge deficit the state is trying to manage. Like most states, Illinois has suffered due to the recession and is now attempting a recovery. Part of that recovery is going to entail overcoming the huge budgetary issues it has.

One other issue the state has is regulatory. If the slots are installed the state will have to come up with regulations for the slot machines as they don’t currently have any. They have two months to come up with the new regulations and once the slot machines are up and running the state will get 30% of the revenue they generate.  Under this new proposed bill, the state would increase the number of slot machines to about 77,000. This is a substantial growth in the Illinois gambling market. Part of the problem is that there are no rules dealing with how the machines are going to be run or how many each slot parlor will be allowed to house. Illinois, like most other states, believes that slot machines are going to answer a lot of their financial problems. Although slots are lucrative, legislators need to have laws ready to handle how they are going to be managed.  

The Hong Kong government is thinking of placing further restrictions on the Macau gambling industry. In fact, the government is considering limiting the number of gambling tables a casino can put in their business. This includes slot machines in slots parlors and table gaming.  Executives of six casino operators met with the city’s government to discuss how the industry is developing and where it may be in the future. 

The meetings of the government and gaming officials are focused on the huge growth Hong Kong and Macau are experiencing in the field of slots and gambling. Local units of the Las Vegas Sands and the Wynn Resorts were in attendance. Together all parties are looking for ways to regulate the growth of the industry and they all agree that the city’s gambling market should not be allowed to “expand unlimitedly.”

The government is looking to examine how large the local gambling and slots industries are. This includes the number of gaming tables in Macau as well as the number of slot machines in bars. Some of the suggested changes are to ban slot machines from residential areas and to raise the legal age limit to enter casinos to 21 years old, from 18 years old.

Macau is the only city in China where gambling and slots are legal. Part of the issue is that the city has experienced a huge increase in recent years. In fact the numbers of Macau, in terms of total gambling on tables and slot machines, is now well past the revenues coming from the Las Vegas Strip.  The initial income generated from gaming, both table gambling and slot machine play, fell as a result of the global recession.  Rather than stagnate, however, the market was quick to recover due to the highly aggressive Chinese economy and the changes in visa restriction on mainland Chinese tourists.

Due to huge growth in the industry, expect more dynamic gaming and development. But also expect the Macau government to do some regulation tactics. Their fear is that the industry will grow so quickly that they won’t be able to sustain themselves. Knowing that slots and online gambling are big business, it’s not something they can pass over quickly.

Several weeks ago the Supreme Court decided that Ohio’s plan to introduce slots to the race tracks was subject to Ohioans’ vote via referendum in November. If the group LetOhioVote.org could collect enough signatures, the plan would have to be put on hold for a year to allow Ohioans to vote next year. The Let Ohio Vote group maintained that they wanted to uphold the people’s rights to decide on creating slots parlors at race tracks. They as a whole were neither for, nor against the actual slots parlors going up. Rather, it was a legislative question of authority and power. They believe that the issue is constitutionally in the hands of citizens, rather than a decision legislators can make without gathering public opinion.

On another side of the debate there were activists opposed to the slot machines installation in racetracks. This group also filed a law suit with the Supreme Court asking to be heard. The court ruled and threw their lawsuit out. Their reasoning was that because the slots plan isn’t law and may not happen for up to another year, opponent’s arguments are doubtful because they have not been “legally harmed.”

Rob Wallgate, of the Ohio Roundtable and Freedom Forum, is upset at the decision and the way things have been happening regarding the issue. “We feel that they [let Ohio Vote] had eight or nine valid claims against the governor’s plan, however they jumped the gun. They went ahead and filed theirs in advance and now theirs is being heard first. And going to be acted out and decided. We feel that there are a lot more constitutionality questions regarding the governor’s plan that need to be answered.”

At the center of the argument is whether or not legislators and the governor of Ohio have the authority to alone to authorize slot machines. Some are claiming that only approval of a constitutional amendment voted on by the people can bring about a change in slots legislation. As of now Let Ohio Vote is still petitioning for signatures and hoping to gain public support. Most likely, however the referendum won’t be included in the November vote until 2010.

If you are a fan of online gambling, you aren’t alone. Studies are showing that there are millions of online gaming enthusiasts online at any given time throughout the day. They love slots, poker and table gaming. The number of players is quickly growing the industry to a billion dollar market.  A huge number of those online gamblers are made up of US citizens.  There is a problem however, because legislations are constantly changing. 

Here’s the issue: money.  On one side you have governments that are hard-pressed to fund their huge budgets and most have huge deficits to deal with on top of it. The recent recession left almost everyone—businesses, individuals, and governments—at a loss for dealing with huge expenses. The result is a monetary system that is staggering to find its footing after the difficult recessionary times.

Enter online gambling and the huge growth into the picture.  Now governments are taking notice because they see huge casino-tax dollar potential. The industry is a billion-dollar one and showing no signs of stagnating any time in the future. Governments want a piece of that pie through taxation and regulation of online gaming.

That brings us to the other side. While governments searching for additional funding are on one side, social, ethical and religious-based organizations are on the other. They believe that the legalization of online gambling will inevitably bring corruption and addiction to the forefront of every day lives of millions of Americans. They are hoping that gambling will not be legalized because then table games, slots and poker will become accessible in bars, pubs, race tracks and various other places. Its prevalence could catapult culture into a downward spiral of deprivation.

The two sides are currently fighting it out in local, state and federal levels. Each one has valid points, but with budgets crying as loudly as they are, it may be the ethical organizational front that has to recede in upcoming months. Although local governments have a say in the issue, they are still shoring themselves up for legalization of online gaming through building programs for addicts and creating resources for anyone who believes they may be in trouble. It’s a difficult debate, but money may be the deciding factor for the country.