Friday, March 7, 2003 | 11:13 a.m.
A sister company of The Venetian casino resort in Las Vegas has been awarded an Internet gambling license from regulators in Alderney, one of the British Channel Islands and one of a few jurisdictions worldwide that has crafted regulations allowing for the lawful operation of Internet casinos.
The license paves the way for the Venetian unit to introduce a Web casino that will be operated by Venetian Interactive Ltd. in conjunction with business partner SSP Gaming LLC. SSP is a subsidiary of SSP Solutions Inc., an Internet security company based in Irvine, Calif.
The company hasn't yet determined when it will launch the as-yet unnamed site but expects to finalize operational plans within the next several months, said David Friedman, assistant to the board chairman of Las Vegas Sands Inc., The Venetian's parent company.
"An Internet gaming license in Alderney provides Venetian Interactive with some of the highest regulatory standards and controls in the industry, which supports our goal of providing a user-friendly gaming and entertainment experience in a totally secure and trusted environment," Richard Depew, chief executive officer of Venetian Interactive, said in a statement.
The company decided to apply for a license with Alderney regulators because the island has developed stringent regulations that are in harmony with federal and Nevada laws relating to Internet gambling, Venetian spokesman Kurt Ouchida said.
The U.S. Justice Department has determined that Internet gambling is illegal. But that claim has already been challenged in court, meaning that such sites are operating in a kind of legal gray zone, gaming attorneys and other experts say. And Nevada is still exploring whether to legalize Internet gambling for in-state residents only.
The Venetian is controlled by businessman Sheldon Adelson.
Adelson's Venetian Interactive is only the second major Las Vegas company to introduce an Internet casino.
The development comes as other companies are pulling out of the market due to the uncertain regulatory environment and cloudy profit potential of such sites. Last year, Station Casinos Inc. decided to pull the plug on its interactive gambling unit, saying it hadn't received enough clarity from Nevada regulators on whether to proceed. In January, Bahamas resort operator Kerzner International Ltd. discontinued its online gambling division, citing increasing competition, more restrictive play in legalized jurisdictions and the unlikelihood that Internet gambling would become legal in the United States.
Park Place Entertainment Corp. has an Internet gambling license pending in the Isle of Man, a tiny island nation near Britain that has also developed Internet gambling rules. But the company has historically taken a conservative approach to Internet gambling and hasn't yet announced plans to actually launch a Web casino there.
Last fall, MGM MIRAGE, introduced an Isle of Man-based Internet gambling site for U.K . and European bettors. The company introduced the site to test the market rather than reap a significant profit, executives say. MGM MIRAGE continues to push for the legalization of Internet gambling in this country and expects that more jurisdictions worldwide will eventually adopt regulations governing Web casinos. Other companies are divided on the issue.
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