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Online Casino Prohibition Unlikely

Following his high profile online debate with a Republican Senator Jim Leech, David Carruthers of Bet On Sports has stated the attempts to ban the online casino industry are doomed to fail. The statement from the online casino boss has echoed an earlier one made by 888’s CEO John Anderson, predicting that the online casino ban will fail due to lack of support for the bills currently under consideration by the U.S. Senate.

In an interview with Reuters last week, Carruthers said he expects sports betting and online casino gambling to be legalised by the U.S. government in the next few years. The online casino boss highlighted past attempts to ban online casino gambling by Arizona’s Republican Senator Jon Kyl, and said that he would be very surprised if any of the current anti-gambling bills survived the year past July. Given the U.S. government’s vociferous approach to stamp out online gambling, several large operators have sought to diversify their markets in recent years in an attempt to wean themselves from valuable U.S. revenues. Last year money generated from U.S. gamblers was thought to represent about 80 percent of the total online casino market. Industry analysts now believe that this amount has reduced significantly to around 60 percent. The industry as a whole is commonly expected to grow to $22 billion dollars in the next four years from its current value of $12 billion.

Carruthers also stated that a current bill seeking to prevent financial transactions to online casino operators would be impossible to implement. Provisions in the bill to stop credit cards companies from allowing payments to online casino sites would have little effect considering the majority of casino players now use internet transaction providers such as Neteller for depositing money in casino accounts worldwide.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.