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Opinion
Opinion: Key issues for tribal governments and Internet gaming


"Legalized Internet gaming: opportunity or threat? Efforts in Congress last year to pass a federal Internet gaming bill failed, but a new bill was introduced in the House on March 17 and it is anticipated that a new Senate bill will be introduced later this year. A number of states are considering Internet gaming legislation, including states where there are tribal gaming operations, such as California, Iowa and Florida. It is far from certain that any of these bills will pass this year, but it does seem likely that efforts to pass Internet gaming legislation will continue and intensify, particularly since both the federal and state governments are desperate to find additional sources of revenue.

Each tribal government must make decisions about Internet gaming based on its unique circumstances. Before making a decision to support, propose amendments to or simply oppose a particular Internet gaming bill there are important issues to consider:

Will Tribal Governments Be Eligible to Participate?

Some of the proposed bills would exclude tribes entirely or contain restrictive conditions that would allow few tribes to qualify. Others would require that tribes compete against commercial gaming entities for the opportunity to participate, effectively shutting out most tribes. As governments authorized to conduct gaming under federal law, tribes are in a strong position to argue that they should be able to participate in Internet gaming without meeting new licensing requirements or being forced to compete against commercial entities for the opportunity.

Will Tribes Be Able to Compete?

Proponents of Internet gaming often argue that it will allow Indian tribes to generate more gaming revenue since they will be able to offer games to players located beyond tribal lands. This is not necessarily true because every other entity authorized to conduct Internet gaming will be competing for those same customers. Depending on the bill, competitors could be other tribal gaming operations, commercial casinos, game vendors, card rooms, pari-mutuels, off-shore interests and other entities. Since all Internet gaming sites are equally accessible to any player with a personal computer and an Internet connection, a gaming site operated by a tribe with a small or medium-sized gaming facility may not have the name recognition or resources necessary to compete with a site operated by a major casino company. The level of competition allowed by an Internet gaming bill is an essential consideration for determining if it will provide a significant opportunity or will simply cannibalize an existing customer base. "

Get the Story:
Joseph H. Webster: Key Internet Gaming Issues (Indian Country Today 3/31)