Industry affirms stance against Internet gambling

Friday, May 25, 2001 | 10:41 a.m.

The board of directors of the American Gaming Association, which has opposed Internet gambling because of problems the industry could have supervising play, has affirmed its stance on the controversial issue.

Frank Fahrenkopf, president and chief executive officer of the association, issued a statement following a Tuesday meeting at which board members discussed the merits of pressing ahead on Internet gambling in the wake of new efforts to legislate its legalization in Nevada and New Jersey.

"While the board maintains its view that gaming is primarily a state regulatory matter, the consensus of the board is that appropriate regulatory and law enforcement oversight does not presently exist with regard to Internet gaming to properly protect the integrity of the games, the security and legality of financial transactions and against the potentially harmful effects of underage and pathological gambling," Fahrehnkopf said.

"The AGA will evaluate specific pieces of Internet legislation on a case-by-case basis as they are introduced in Congress and by state legislatures," he said. "Such legislation must not create competitive advantages or disadvantages between and among commercial casinos, Native American casinos, state lotteries and pari-mutuel wagering operations."

In a related matter, published reports indicate at least two leading casino industry executives also oppose the industry moving too quickly into Internet gambling.

The Press of Atlantic City reported that Thomas Gallagher, chief executive officer of Park Place Entertainment Corp. of Las Vegas, which operates several resorts in Las Vegas including Caesars Palace, urged caution on the development of cyber casinos.

"There are some very important and very real concerns about when and how there will be adequate safeguards and adequate security to assure that minors are restricted from access," Gallagher said in a panel discussion on Internet gambling at the Mid-Atlantic Gaming Congress.

Phil Satre, chairman and chief executive officer of Harrah's Entertainment Inc. of Las Vegas, also suggested the industry take a cautious approach on the issue.