Home
News
US Midterm Elections Impact On Online Gambling

US Midterm Elections Impact On Online Gambling

Added: November 6, 2014

The results of the November midterm elections have cast a gloom not only on the Democratic Party but also on the online gambling fraternity in the United States. The Republicans have snatched the Senate from the Democrats and have increased their majority in the House of Representatives. Industry experts have already put out their opinions that Internet gaming legalization and regulation will not be on the agenda of the new Congress.

Macquarie Securities gaming analyst Chad Beynon analysed the issue in some depth. The most visible impact of the Republican victory is that Democrat Senator Harry Reid from Las Vegas will no longer be Senate Majority Leader. He was one of the most vocal supporters of legalizing online poker on a federal level. This will be a setback for online gambling. The Grand Old Party also came into power in several states. Beynon pointed out that this could have an adverse effect on intrastate online gambling efforts.

Republicans have significant support from conservative sections of the American society and have always been negative on Internet gambling. Fortunately for them, and unfortunately for online gambling supporters, the revenues reported from the three states that have legalized intrastate online gambling have been below projections. Therefore the arguments that this activity will help in bridging immediate budget deficits are being considered cynically. The Republicans will use this as ammunition for their cause. The biggest state that is contemplating online gambling is California. If it makes the move then the sentiment can change. Beynon pointed out that California is nowhere near solving the issues that are holding it back.

The detractors of Las Vegas Sands Corp. Chairman Sheldon Adelson now have dirt on their faces. His efforts at opposing Internet gaming legalization seem to have paid off. Adelson has invested millions to prevent Internet gaming at the federal and state-by-state levels. It was reported in Politico that Adelson had given $10 million to Crossroads GPS, which was used to fund the campaigns of GOP Senate candidates. Many of those candidates won and will owe to Adelson.

The forward movement of online gambling is definitely on hold till after the next presidential election. Some analysts have expressed fear of a roll back of the steps taken. There are bills pending that seek to ban online gambling at a federal level, taking the choice away from the states. One such bill seeks to reinstate portions of the Federal Wire Act that would impose a blanket ban on online gambling. This could be pushed from early next year.