Our View: Online gaming: A difficult question for lawmakers
The Bulletin
Norwich, Conn. —
Delaware Gov. Jack Markell signed legislation in June making his state the first in the nation to legalize online casino gambling.
Lawmakers narrowly approved the measure as a means of protecting the state’s embattled casino industry that is coming under intensive competition from the neighboring states of Maryland and Pennsylvania, and posing a serious threat to Delaware casino jobs and state revenues.
Delaware’s Internet gaming — which will be limited to Delaware residents only using geolocation verification software — will be available to patrons through casino web sites and is expected to be up and running next year. Those web sites will offer slots, roulette, blackjack and poker.
Which raises the question, will Connecticut be next?
Gov. Dannel P. Malloy floated the idea of legalizing online gaming last year, citing a U.S. Department of Justice ruling in late 2011 that opened the door for states to take that next step. But that idea was quickly put to rest by legislators in Hartford unwilling to take up such controversial issue in a short legislative session.
However, with Delaware moving forward with its online gaming initiative, and other states expected to follow suit, we expect the issue will resurface in the upcoming legislative session — and for exactly the same reasons that Delaware officials acted: Connecticut’s casinos are just as much at risk from competition and a stagnant economy.
We have not looked favorably upon the prospects of expanded gaming in the past. We opposed the idea of allowing the state Lottery Commission to introduce Keno games in bars and restaurants, and we strongly opposed efforts to allow the two casinos to extend the time to serve liquor as a means of encouraging patrons to gamble longer.
However, we do appreciate what is at risk today from increased competition in neighboring states, the potential loss of thousands of jobs for Eastern Connecticut residents, and hundreds of millions in state revenues.
We’ve seen the impact on slot revenues due to the economic downturn. Connecticut receives 25 percent of the slot revenues from Foxwoods Resort Casino and the Mohegan Sun, both of which reported a continuation of declining slot revenues again last month.
However, allowing for online gaming also has risks. That too could put thousands of jobs on the line if casino patrons opted to satisfy their gambling interests from the confines of their home. Online gaming also poses serious and costly social risks with the potential of increased problem gambling and under-aged gambling.
The threat of casino competition from neighboring states is still years away from reality. Connecticut’s two casinos have long established themselves as destinations offering much more than just gaming. New casinos coming online will be unable to match that for years to come.
But that advantage will not last forever.
What’s the right course of action to take? We’re not sure.
We’re not yet convinced that expanded gambling through the Internet is the right answer, yet we’re not willing at this point to simply dismiss the idea out of hand. We don’t know yet if the advances in gaming technologies are sufficient to provide the necessary safeguards to protect consumers while avoiding adding to the damaging personal social consequences.
We look forward to the debate.
Lawmakers narrowly approved the measure as a means of protecting the state’s embattled casino industry that is coming under intensive competition from the neighboring states of Maryland and Pennsylvania, and posing a serious threat to Delaware casino jobs and state revenues.
Delaware’s Internet gaming — which will be limited to Delaware residents only using geolocation verification software — will be available to patrons through casino web sites and is expected to be up and running next year. Those web sites will offer slots, roulette, blackjack and poker.
Which raises the question, will Connecticut be next?
Gov. Dannel P. Malloy floated the idea of legalizing online gaming last year, citing a U.S. Department of Justice ruling in late 2011 that opened the door for states to take that next step. But that idea was quickly put to rest by legislators in Hartford unwilling to take up such controversial issue in a short legislative session.
However, with Delaware moving forward with its online gaming initiative, and other states expected to follow suit, we expect the issue will resurface in the upcoming legislative session — and for exactly the same reasons that Delaware officials acted: Connecticut’s casinos are just as much at risk from competition and a stagnant economy.
We have not looked favorably upon the prospects of expanded gaming in the past. We opposed the idea of allowing the state Lottery Commission to introduce Keno games in bars and restaurants, and we strongly opposed efforts to allow the two casinos to extend the time to serve liquor as a means of encouraging patrons to gamble longer.
However, we do appreciate what is at risk today from increased competition in neighboring states, the potential loss of thousands of jobs for Eastern Connecticut residents, and hundreds of millions in state revenues.
We’ve seen the impact on slot revenues due to the economic downturn. Connecticut receives 25 percent of the slot revenues from Foxwoods Resort Casino and the Mohegan Sun, both of which reported a continuation of declining slot revenues again last month.
However, allowing for online gaming also has risks. That too could put thousands of jobs on the line if casino patrons opted to satisfy their gambling interests from the confines of their home. Online gaming also poses serious and costly social risks with the potential of increased problem gambling and under-aged gambling.
The threat of casino competition from neighboring states is still years away from reality. Connecticut’s two casinos have long established themselves as destinations offering much more than just gaming. New casinos coming online will be unable to match that for years to come.
But that advantage will not last forever.
What’s the right course of action to take? We’re not sure.
We’re not yet convinced that expanded gambling through the Internet is the right answer, yet we’re not willing at this point to simply dismiss the idea out of hand. We don’t know yet if the advances in gaming technologies are sufficient to provide the necessary safeguards to protect consumers while avoiding adding to the damaging personal social consequences.
We look forward to the debate.
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