|Analysts at Bear, Stearns & Co believe that 60% of the Internet casino revenue is from the U.S. market. With the exception of horse racing no form of Internet gambling has the approval of any state.|
Despite online betting being legally uncertain in the United States unclear laws make prosecution so difficult that state attorneys have to curb the flourishing industry by focusing on service providers, such as PayPal. Previous attempts to pass bills that would explicitly make online gambling a federal offence have been successfully obstructed in Congress.
Confusion over the legal status of online gambling has also led to a reduction in online casino advertising. Only last month Yahoo dropped ads for virtual casinos. Akamai Technologies, which provides some of the Webís highest quality graphics have also refused to carry such ads on its ďcontent serversĒ. Both seem to have followed suit with AOL that hasnít advertised online casinos for a long time.
However the Internet Gaming Council insists that the attempts to knock Internet gambling out of the mainstream simply wonít work. Insisting that it will never be fully possible to prevent, the council urges the U.S. government to legalise and regulate Internet gambling instead. This would enable the prevention of crimes such as money laundering whilst providing more money in the collection of taxes.
Experts believe that Pay Palís withdrawal from the I-gaming space will only cause a temporary dip in online gaming revenues, and will spark the development of more sophisticated online payment mechanisms. Already, payment methods from outside the United States are beginning to take up the Pay Pal slack.