There has been a lot of talk in the online gambling industry lately about the U.S. Congress passing gambling legislation during the lame duck session. To be honest, I’ve never paid much attention to it because I thought there was no way it would happen.

Congress usually doesn’t pass anything major or anything controversial during the lame duck session. In addition, there are much bigger concerns for Congress right now, such as avoiding a January tax hike and funding the government. Yes, that’s right. Congress has not yet gotten around to passing a bill providing funding to the government. Without a stopgap funding bill, there would be no appropriations for the government – not that that’s important! With unemployment at almost 10% and underemployment at almost 18%, there are much bigger things for Congress to do by the end of the session than worry about online gambling.

I should have known, though, that this Congress doesn’t care about what is important; they have their own priorities (that’s why so many lost their jobs). So instead of worrying about keeping taxes at their current level (or better yet, lowering them), they are more concerned with passing an amnesty bill for illegal immigrants, repealing Don’t Ask Don’t Tell, passing a weak START treaty and more. So it shouldn’t come as a surprise if they consider online gambling a priority, too.

I’m now paying attention to this scenario because it’s now being reported by legitimate sources. Yesterday, Bloomberg reported that Democrat Senators are being accused of a secretive deal attempting to pass online gambling legislation in the lame duck session. Three Republicans in the U.S. House are calling the process “closed-door” and “undemocratic.”

Those representatives are Spencer Bachus (who will be chairman of the Financial Services Committee), Dave Camp (who will be chairman of the Ways and Means Committee) and Lamar Smith (who will be chairman of the Judiciary Committee). All three committees would oversee online gambling legislation if conducted through a normal open Congress.

The three representatives believe that some Democrats plan to attach online gambling legislation to “must-pass” legislation, such as tax cuts, and have asked Senate Majority Leader Harry Reid to abandon the secretive deals and conduct business out in the open.

In the letter they said that creating a new industry and “imposing an unprecedented new tax regime on such activity requires careful deliberation, not back-room deals.” They have a right to be angry, and this Democrat-controlled Congress has been one of the worst at history in terms of crooked back-room deals. Still, to be fair, UIGEA was passed as a sneaky add-on to a bill in 2006.

Many in the gambling industry applaud this move to pass online gambling legislation as an add-on, but is it a good idea? I want online gambling legalized in the United States, but can the Democrats who have ruined every industry they have gotten their hands on be trusted to regulate the industry in an efficient way? (The answer is no). Can they be trusted to tax the gambling industry in a fair and appropriate rate? (The answer is no).

I am 100% opposed to the tactic of conducting secretive back-room deals to push legislation through, but I support legalizing online gambling. Does the ends justify the means? To me, the answer is no, especially when I don’t trust the Democrats to regulate the industry in a way that allows the industry to thrive. However, passing gambling legislation would not be a priority for the next Congress and if they were to pass it at all, it would probably be a while. Maybe we should hope that the legislation passes now and that wise fiscal conservatives can amend the law later to make it more sensible. What do you think?

As much as the casino industry is struggling in Atlantic City, those businesses could use all the help they can get. Profits have been down, in part because of the Great Recession and in part because of the competition from casinos in nearby states – such as the new table games in Pennsylvania.

Two Democratic State Senators Jim Whelan and Raymond Lesniak have proposed a bill that would provide a $25 million tax break to the Atlantic City casinos. The tax break is regarding freebies at the casino. The casinos are taxed for all transactions, including coupons for free games and other free promotions given to the players. Those freebies, though they bring no money into the casino, are still recorded as revenue and taxed at an 8% rate. Back in 2008, the New Jersey legislature worked out a deal that applied that 8% tax to only the first $90 million worth of freebies, and after that, those free promotions were tax exempt.

That tax exemption passed in 2008 has accounted for an additional $7.2 million for the casinos each year. The new bill currently in the state Senate would expand the tax exemption, which could result in a tax break of up to $25 million. The increase in profits could help some casinos avoid layoffs as they see more revenue.

When Republican Chris Christie became governor of New Jersey last year, he made saving the casino industry in Atlantic City a priority. As one of the largest industries in the state, helping their businesses to remain profitable would be a benefit to the residents of New Jersey. Not everyone is happy about this new bill, though. In order to pay for the tax breaks, the money would be taken from the Pharmaceutical Assistance to the Aged and Disabled, a program that helps the elderly and disabled afford prescription drugs and other medical expenses. Leave it to Democrats to screw up something good like tax breaks.

Atlantic City casinos are struggling. That’s not exactly a newsflash. However, new numbers have been released for October and they paint a pretty dismal picture.

In October, total revenue from all Atlantic City casinos equaled $284 million. That is a 12% drop from this time last year. It’s easy to blame declining revenue on the Great Recession, especially for an industry that relies on tourism and disposable income. The recession isn’t the only problem, though, because we’re not talking about a 12% drop from 2006 or 2007. This is a drop from October of 2009, when the U.S. was still in the middle of the recession. Now the government tells us that the recession is over, but anyone with a bank account, a grocery list or an updated resume knows that’s not true.

If it’s more than the recession then it becomes more necessary to find the problem and fix it. While slot revenue took a 10% drop from 2009, which is still bad, revenue from table games fell by 17%. That sharp drop is likely due to the new table games in nearby Pennsylvania casinos. People who want to play blackjack and roulette no longer have to go to Atlantic City. When you’re no longer the only game in town, you have to do something to get customers.

That is why some Atlantic City casinos are now looking at online gambling as a partner rather than a threat. People are already gambling online, whether those casinos like it or not. Instead of fighting against regulation, if the Atlantic City casinos can get involved and open their own online casinos (like Harrah’s has done overseas), they can reap the benefits of online gambling’s increasing popularity.

Residents of Alberta, Canada did less boozing and gambling last year, according to a new report. The report by the Alberta Gaming and Liquor Commission, released on Wednesday, stated that Albertans drank less alcohol and spent less money on gambling last year than in previous years. Also reduced was the amount donated to charities and community programs.

A lot of that makes sense. Alberta, like most of the world, has been struggling through a deep recession that was caused in large part by fiscal irresponsibility. With people losing jobs all over the place, it seems like a bad time to spend money on non-essentials. For that reason, gambling revenues dropped for the second consecutive year, which is not surprising because nobody can claim that gambling is a necessary expense. What’s a little surprising is that alcohol consumption also dropped. Again, that is an expense that some deem “unnecessary,” but for many people, tough times are easier to get through with the help of a bottle. Alcohol revenue actually increased slightly in 2009 (due to higher prices and taxes), though consumption went down. That is the opposite of what you would expect, suggesting that people didn’t decide to switch to cheaper drinks during the recession.

According to the report, this is the first decline in alcohol consumption in at least five years. Overall, the Alberta government make $2.1 billion from the combination of liquor and gambling in 2009, which is down from $2.2 billion the year before. Charity revenue fell from $335 million in 2008 to $323 million last year. All of these numbers are a drop from 2008, which is when the recession started. When compared to more prosperous years, the drop-off is even larger.

Members of Alberta’s government expect the gambling and liquor revenue to rise again when the economy rebounds. Frank Oberle, the Solicitor General of Alberta, said that he anticipates “that gaming will come back in a more active sense as the economy improves.” I guess he can thank U.S. Senate Majority Leader Harry Reid for that possibility. According to Reid, the entire world would be in a depression if not for him!

Despite the drop in revenue, Oberle says that Alberta has no plans to regulate online gambling for extra revenue, like British Columbia and Ontario. He said that “it’s a pretty saturated market and it’s an expensive market to play, and I think we have enough gaming opportunities right now in Alberta.”

It’s time to face the facts and admit something that has been staring us in the face for quite some time: Las Vegas may never return to prosperity. The days of the entertainment-based city being a symbol of vacation, fun and relaxation in the casino hotspot of America may be over. While some parts of the country are recovering from the Great Recession, Las Vegas is not. Worse yet, I doubt it will recover anytime soon. Still worse, it may not recover at all.

The U.S. federal government tells us that the Great Recession ended in June 2009. If that seems a little odd to you, you’re not alone. Unemployment has gotten worse since that time period and it has been hovering at approximately 10%, with underemployment over 17%, for several months. Still, many states have reached a baseline, where although there has been no recovery, no adding of jobs, things haven’t gotten worse in a while. You also have to remember that in several points of time during the Great Depression, experts proclaimed the depression to be over.

Of the 50 states that make up America, Nevada ranks dead last in most economic numbers. The biggest one, of course, is unemployment. Nevada has an unemployment rate of 14.4%, which is worst in the country and is almost 5% higher than the national average. The city of Las Vegas is even worse, with a 14.7% unemployment rate.

It’s not difficult to figure out why Nevada is struggling. Its top two industries are related to casinos and related tourism and home construction. With all of the foreclosures going on combined with economic problems, there isn’t really demand for new homes. By the way, Nevada also leads the nation in foreclosures. But what about gambling in Las Vegas? No one can take that away from them, can they?

Yes. The casino industry requires people with enough disposable income to be able to go on vacation and blow money in casinos. With 10% of the nation out of work, more than 17% with insufficient employment, and the rest of the country worrying that they can lose their job at any time, this isn’t a time when many people would choose to visit Vegas and hit the craps table.

With all of that working against Las Vegas, they face another threat: online gambling. With online casinos, players don’t need to take a trip to Vegas, pay for a room, buy drinks and pay for some shows. With online casinos, they can play their favorite casino games from the comfort of their own homes.

It is for that reason that many Las Vegas casinos are opposed to online gambling being regulated in the U.S. However, I think that instead, the land-based casinos need to embrace online gambling. They can’t beat online casinos. Even if the industry is never regulated in the U.S., that won’t stop Americans from playing at overseas casinos. If you can’t beat them, join them. Las Vegas casinos need to follow Harrah’s lead and create their own online casinos. If the U.S. decides to regulate the industry, they can offer their services in America. If not, they can focus on the rest of the world.

Opposing online gambling is a worse idea now than ever. Las Vegas casinos need every bit of income that they can get, because the economy in America shows no sign of getting any better in the near future. There is too much debt to pay off, too much spending to end, too many government agencies to do away with, and too many jobs that are being lost. Though they may seem like enemies, online casinos are the best chance Las Vegas has to stay relevant and profitable.

On Friday, New Jersey lawmakers met for the second gambling summit, in order to debate the various issues affecting their gambling industry as well as consider possible solutions. The U.S. state of New Jersey is basically cut into two sections when it comes to gambling. The southern part of the state is the Atlantic City market, known for its large, luxurious casino resorts. The northern part of the state is the Meadowlands market, where racetracks pull in gambling revenue. Neither industry is doing well right now.

You don’t have to be an economic guru to understand why gambling businesses are struggling right now. In this recession, most businesses are struggling – except for road construction, of course – and with people cutting back on the money they spend, unnecessary expenses like trips to a casino are the first to get cut. President Obama even told people not to go to casinos, much to the chagrin of Las Vegas and Atlantic City!

New Jersey’s economy is worse than most of the country, thanks to Jon Corzine’s big-government policies driving them into the ground. New governor Chris Christie shows promise, but it will take time for him to turn things around.

In an attempt to boost business, the Meadowlands racetracks want to add other casino games to their businesses. Since Christie wants to end government subsidization of the racetracks, some see expanding their games to include more casino games is the only way to compete and stay in business.

In the gambling summit, lawmakers called for an increase in off-track betting parlors in the state. Currently, 15 such parlors are allowed by law, but only three exist. While the idea of opening more off-track betting parlors and allowing more casino games at the racetracks appeals to some, owners of Atlantic City casinos largely oppose the measure. They fear that if residents had access to closer casino games they would not make a trip to Atlantic City, which Christie is attempting to turn into a major tourist destination (and not just for gamblers). Atlantic City is also facing tough competition from neighboring states.

Another idea that was debated in the summit was creating an intrastate online gambling market. The area’s land-based casinos could create online casinos and only people within the borders of New Jersey could play. Since it’s confined to the state’s borders, no federal regulation or legalization would be necessary and UIGEA would be irrelevant.

While there was much debate, this little “fact-finding” meeting had little real results. Lawmakers never came to an agreement on any plans to revive the struggling gambling markets. The meeting was held in large part to come up with an alternative to Christie’s plans, but no better plan emerged (except maybe the intrastate online gambling plan, which wasn’t supported by every member in attendance). So I guess it’s politics as usual.

Gambling law in Alabama may soon change. The state has traditionally been against gambling, but recent events have some people, the residents as well as politicians, reconsidering their position. Electronic bingo machines, which are currently illegal, have sprung up across the state, but so far nothing has been done about it. Governor Robert Riley was frustrated with the fact that the city police and attorney general seemed to look the other way. In response, he formed a Task Force on Illegal Gambling last year.

One of the first actions of the task force was to raid three establishments believed to be housing illegal gambling, which include Country Crossing, VictoryLand and the White Hall Entertainment Center. However, since they did not have a warrant, a judge ordered that the raid be halted. VictoryLand then filed a restraining order. Since then, a warrant has been issued to search the establishments and in response, the businesses have closed indefinitely to avoid being raided.

And that’s where things get tricky. If the businesses are indeed running illegal gambling operations, Riley is well within his rights by going after them, though many in the gambling community see him as an evil anti-gambling activist. The attempted raids and subsequent closings, however, have stirred up controversy in the state and now it seems that the people don’t even agree with the gambling ban anymore.

Once a strong anti-gambling voice, the people of Alabama have seen their state, like the rest of the country, mired in a bad recession. Jobs are scarce and with those businesses shut down, the economy is hurting even more and countless workers are wondering if they still have jobs. As a result, a recent poll by the Christian Coalition shows that 2/3 of the people of Alabama are opposed to Riley’s gambling raids and a poll by the Public Affairs Research Council of Alabama found that 72% of the people are in favor of regulated gambling in the state and only 25% want gambling outlawed.

In response, Riley’s popularity in the state is falling and state Representative Marcel Black introduced a bill that would allow the voters to decide whether or not to legalize gambling. At this time, shutting down illegal gambling is perfectly constitutional, but doing so could hurt Riley. With thousands of jobs at stake, no one wants to be the guy who made the unemployment situation in Alabama even worse. For that reason, it may be best to let the people vote and see what they decide. In the meantime, do nothing. It may turn Riley’s stomach to turn a blind eye to illegal activity, no matter how harmless, but it may be what’s best for the state, his reputation and that of his party.

Though the global recession is hurting most businesses, there are some that are thriving. Gun and ammunition manufacturers are making a killing due to Americans who fear that a government that is rapidly expanding its power may soon outlaw the sale of firearms. Fast food restaurants with dollar menus are fattening their wallets because consumers can’t afford good food. The chocolate industry has made a sweet profit because chocolate is a comfort food and right now a lot of people need to be comforted. Whatever company provides the paper for the unemployment offices is doing pretty well, too. The point is, though business in general is bad, some companies are still making money.

Count PartyGaming in that category. Between the second and third quarters of the year, PartyGaming, the parent company of PartyCasino, reported a 17% growth in average daily revenue for their online casino operations. At the half-year point, the company saw underlying earnings rise by 34.8%.

The increase in revenue is attributed to an aggressive marketing strategy as well as the launching of 60 new games. That expansion is believed to have added new customers and convinced established customers to stop by the site more often.  The increase in revenue is very welcome news to the company, who is paying $105 million to the US government in a settlement related to the Unlawful Internet Gambling Enforcement Act (UIGEA).

According to CEO Jim Ryan, though some of their websites have seen losses, PartyCasino has been their biggest earner.  He stated that “Casino has been our star performer and continues to go from strength-to-strength, consolidating our position as the world’s leading online casino.” That is good news indeed. So when you get a stomach ache from eating too much chocolate, log on to PartyCasino and enjoy the new games that have made the online casino profitable.

The economy has been in the crapper for quite a while now. Still, it’s hard to fathom how an industry whose customers continually pump quarters into slot machines without a true expectation of return on that money can claim hardship. I understand that people are spending less money gambling online, but let’s be real…online gambling is a can’t lose industry for those that are successful. That being said, 888 Holdings Plc, the second-largest U. K. online gambling company is predicting further growth in the coming months.

Gigi Levy, Chief Executive Officer of 888 said, “We feel a lot more confident in the industry’s going back to its normal growth trend, rather than continuing to be hurt by the recession. We’re looking at Q1 as the lowest point and aiming to grow from there.”

This recession is the worst since World War II, which coming from a British person is pretty terrible when you consider that Great Britain was pretty much obliterated. 888’s second quarter income saw a decline of 12 percent and an 8 percent slump in active online casino and poker players. Amidst the financial turmoil, 88 is taking an aggressive stance and seeking out joint ventures, having secured over twenty contracts with other companies, state owned lotteries, television stations and other media outlets.

888 is also interested in the ladies…their money that is. They are seeking to acquire or develop their own online gambling games geared towards women. Online bingo seems to be the big attraction for girls these days and Levy confirmed this will be their focus.

A recent poll conducted by the betting exchange found that there are two major factors weighing on the minds of internet gamblers, the US government’s freezing of assets back in May and the recession. The fact that the US government overstepped their authority, or what I like to call “doing what the government does best” by seizing funds to be paid out to winning players is a major concern among online players – at least those who know about it. The survey showed that 88% of the players were concerned about the security of their money and 76% moved to different sites as a result. However, only 42% of the players in the United States were aware of the freezing of assets from PokerStars, Full Tilt, Ultimate Bet and Absolute Poker.

 The poll also showed that 52% of the US players are spending less money in online casinos than the previous year due to the recession. So basically, online players are worried about the government stealing their money and about the government trashing our economy by spending too much of their money. Both problems seem to stem from the same principle: the government cannot be trusted with your money. The players’ worries about the government is the hurting online casino business, which should come as no surprise, because the current administration of bad for every other business as well, though it is good for the United Auto Workers union (UAW) and lawyers that love frivolous malpractice lawsuits. So if the online players want to make some real money they should probably join the UAW.