Online Gambling Laws Possibly Pushing Republicans Toward Harry Reid

The upcoming election will be one of the most tightly contested of Senate Majority Leader Harry Reid's career in Nevada. A strong push is coming from Republican candidate Sharron Angle in an attempt to unseat Reid in the Senate.

In past years, a strong Republican candidate may have been just what the doctor ordered for casino executives in Nevada. This year, however, many Republicans are throwing their support behind Democratic candidate Reid.

One of the biggest issues facing Reid and existing land-based casinos in Nevada is the future of online gambling. Reid has yet to fully commit one way or another on the issue, but may be more inclined than in past years to support Representative Barney Frank's legislation that would overturn the Unlawful Internet Gambling Enforcement Act.

For years, casino executives have been opposed to the idea of Internet gambling regulations for fear that it would take away from their revenue. In recent years, the gaming companies have started to waver on that stance.

On Wednesday, Reid's campaign released a list of twenty-five Republicans who are supporting his effort to retain his seat in the Senate. Among those listed was Marybel Batjer, Harrah's Entertainment's policy chief.

Harrah's Entertainment is one of the gaming company's based out of Las Vegas that has openly endorsed online gambling. The company has launched online casinos in jurisdictions of the world where online gambling is regulated, and Harrah's is prepared if and when the laws should change in the US.

Reid will be a major reason why those laws would change. For Representative Frank to pass his proposed legislation, the rep. from Massachusetts will almost certainly need Reid's endorsement. An endorsement from Reid would mean an endorsement from the many casino owners that Reid represents in the state of Nevada.

Other Republican gaming executives that were named on the list released by the Reid campaign Wednesday include MGM Resorts International Marketing Executive Bill Hornbuckle and senior Spokesman Alan Feldman.

Steve Wynn has been the one gaming executive that has consistently been against online gambling law changes in the US. Other companies have started to look into the possibility that the land-based casinos may never again reach the revenue status that they have enjoyed in the past.

"Nevada casinos have experienced several years of tough revenue decreases," said Gaming Analyst Steve Schwartz. "Couple that with the fact that the US is considered to be the largest online gaming market in the world, and it is easy to see how these Republican executives could have an eye towards the future when they endorse Senator Reid."

If the US laws change, it is likely, according to gaming experts, that major US casino company's would get the first shot at the Internet casino licenses. One of the stipulations that Republican leaders had amended in Rep. Frank's proposed bill was that any online site that has not adhered to US laws, will be ineligible to receive a gaming license.

The battle for Senator Reid will intensify in the coming months, but it is clear that no matter the outcome, a changing of the guard has taken place among casino executives. By backing Reid, Hornbuckle, Batjer, Feldman, and other Republicans are expressing a willingness to at least accept online gambling law changes, even if that may not be the reason they are supporting Reid on the surface.

September 9, 2010
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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