MGM MIRAGE gets Internet gambling license for Isle of Man

Kevin Ferguson

Thursday, Sept. 20, 2001 | 11 a.m.

MGM MIRAGE, a longtime proponent of legalizing Internet gambling, is positioning itself as leader in the controversial industry now that it has become one of the first big traditional casino operators to receive an Internet gambling license.

The Las Vegas-based casino operator has been granted one of three lucrative Internet gaming licenses from the Isle of Man, an island-nation located off the coast of Great Britain.

The semi-independent government is in the process of establishing a regulatory environment for the industry.

The other two companies to be awarded licenses today were Sun International of South Africa and Littlewoods of Liverpool, England.

"We are honored by being one of the first companies to be granted, and we will move forward deliberately, but cautiously," MGM MIRAGE Chairman and Chief Executive Terry Lanni said in a statement. "We intend to work closely with the Isle of Man government and domestic regulatory authorities to develop a safe, secure and enjoyable Internet gaming system."

The three companies surmounted compliance procedures including police, treasury and data protection checks on individuals as well as their companies, said a statement issued by the island nation's Department of Home Affairs.

Another nine companies are expected to be granted licenses in the near future, if they pass the background checks, the statement said.

MGM MIRAGE spokesman Alan Feldman said it will probably be about 12 months before the regulatory structure is established and sites are up and running.

Isle of Man gaming regulators will have to approve both the games and the underpinning software. Bets will only be allowed to be taken and placed from jurisdictions where the activity is permitted.

The Internet gaming industry was estimated to generate $1.5 billion in revenue in 2000. That figure is expected to grow to $5 billion by 2003, analysts say.

Lanni said the MGM MIRAGE is working with the American Gaming Association to develop a code of conduct for Internet gaming sites.

Nevada gaming regulators do not yet permit Internet gambling within the state's borders. But they are exploring how to establish a regulatory environment and could legalize it when such an environment is created.

The MGM MIRAGE operation will likely include a staff of about 100, which would include workers in the Isle of Man and in the United States.