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Well the worst case would be really bad. I figure we have a 3 year window before it became legal. Keep fighting back and it will increase the size of the window.
It really could go either way, the govt could come up with a simple way to tax all American gamblers, then let them be the grownups they are, and let them play at any site they want to.
I could also see the Vegas guys greasing the right people to make it as boring and regulated as the Lottery, and all through the land based giants.
Dan
Yeah, I do see legalizing gambling as the end to the affiliate industry (in the US).
Casinocity may run ads for Harrahs but most of the portals dont have the traffic to attract advertising and still be as profitable as today.
Dan___SF wrote:It really could go either way, the govt could come up with a simple way to tax all American gamblers, then let them be the grownups they are, and let them play at any site they want to.This is the way to tax it… in fact it’s a good tax model all round I think…
Roo
But you will have taxes on the casino itself and then taxes on the winnings of the players. I fail to see how this could benefit anyone but the Treasury Dept….
This is a snippet from the Bodog email, I am sure some of you have got it too:
Over the years we were able to keep our deposit and withdrawal transaction costs extremely low and pass the savings on to our players in the form of reload bonuses. The unfortunate events of last week mean those low-cost providers have left the US market and the options that remain are expensive, labor intensive or both. It was a very tough decision to make, but rather than pass on the higher fees to our players, we have decided to remove reload bonuses while continuing to offer free deposits and withdrawals.
Now, think about what they will cut off if they had to pay tax? :terms:
And another thing – take Party Poker, for example. They are licensed in the UK, but if they want to do business in the USA they will have to get a USA license. Now – do they want to do biz in the US? Hell yeah. But do they want to loose their UK license, considering the wishy-washy US government? No. So they would have to pay double now…
Yes true but look at how low the rate is… if this model was applied then there is no way for anyone to dodge paying their share of tax… no evasion.
If this was a complete tax system as an individual you would be paying much less tax.
Stupid wrote:Now, think about what they will cut off if they had to pay tax?The increase in USA players alone would easily make up for it 10 fold.
The increase in USA players alone would easily make up for it 10 fold.
Do you really think so?
Bodog got one of the biggest pieces of pie ever when Playtech and MG pulled out, and yet, they have to cut off bonuses because of maybe 5% increase for payment processing?
If you look closely – you will see that the few online casinos left servicing the entire US market (some casinos seeing increase in players in the thousands percent), those are the ones introducing predatory T&C and cutting bonuses… And this is with minimal competition. Now, think about what will happen if Bodog had to compete with Harrah’s Entertainment. Or Party Poker with WSOP.
Stupid wrote:I would like to get some feedback on this one:http://www.ogpaper.com/comments/article-0192.html
We have been talking about US legalizing it, but do we want it legal?
Yes – yes -yes and yes. Legalise it immediately.
I think that we can compete and offer value to surfers – and will survive – just as we do in the European market wher gambling is legal.
:popcorn:I think that we can compete and offer value to surfers – and will survive – just as we do in the European market wher gambling is legal.
I dont think Europe and USA could be compared in any way.
And why not?
If gambling is legalized then it can be compared directly.There are plenty of land based operations in Europe. They advertise mainstream in newspapers on TV, on advertising hoardings.
But they know that if they’re serious about penetration and market share in the online world then they need to have a presence in the online world where potential players are just “a click away”.
I see no difference at all – if gambling is legalized.
Oh, I was talking about how things are done in USA and in Europe, and you really cannot grasp the vast differences between them two unless you have lived in both for a long period of time.
Take this for example:
Soccer jersey advertisement is the most common form of advertsiement in European soccer. AC Milan has Bwin on their jerseys, but do you see Atalnta Falcons having “Ford” on their jersey?
Small example, but powerful enough, I hope. Why dont MLB sell ads on their uniforms? Because things are done differently here.
Another thing – land based casinos do have very strong community, unlike online casinos. It’s impossible for online casino operators to get together and lobby on something or even agree on standards of any kind, where the land based casinos WILL get together and will establish terms which will be to their own benefit – for example, no sign-up bonuses, cap on affiliate comissions (if any affiliates at all) etc.
I have no idea why American teams do not do shirt sponsorship – probably because it’s a franchised business model and the controlling owners of MLB, NBA, and NFL have set restrictions on this line of revenue so that they can control the flow of money.
However, that’s a moot point – and unrelated to the discussion of legalizing online gambling.
Of more relevance is the “powerful cartel” the the existing US casino’s have – and that might prove to be some sort of barrier to entry for new players …
but I think that money talks and the US market will be too lucrative to ignore.If gambling in the US was legalized – even with restrictions like a physical persence and paying (say) 20% tax on profits – there would still be a flood of new entrants into the marketplace.
The US market is extremely lucrative, and we are talking about online play here – a factor which means that the land based casinos do not have an overwhelming superiority here.
Individual casinos will certainly advertise – and some will certainly get brand name recognition – but many players will want a comparision of offers and some advice on payouts, payout % and bonus offers.
That’s where the online portal comes in – and there will be a place for solid sites with good quality content in the online space for many years to come.
In summary :
Legalising the market allows the market to grow immensely – meaning more players and more offers out there – and a highly competitive market.I don’t want to break laws – I want to be successful in a legitimate market – and online gambling in the US would boom if it was legalised.
As an affiliate I’d rather be playing in a market of $10b a year and fighting for my share – than playing in a market of $1b a year if it’s banned and money payments are totally outlawed.
Good affiliates with good sites will THRIVE !!
and the controlling owners of MLB, NBA, and NFL have set restrictions on this line of revenue so that they can control the flow of money.
My point exactly – in USA laws are made for the corporations, period. And each industry has 1-3 major players, and that’s it. The same way NFL is the almighty for the football all over US, or the National Fluid Milk Processor is the almighty for the milk industry (got milk?), or the FTC, or the MLB, or Kraft, etc.
My major point – if online gambling is legalized in the USA, the law will be beneficial ONLY to the local comapnies – you saw how a port security bill had “something” to do with internet gambling – there are no standards (recognized) for creating laws in this country, and legal online gambling will be given to the local land based casinos and nobody else. Legal online sports betting is out of the question.
And they WILL NOT use the affiliate model, because they won’t need it. You will not be able to compete, because there will be nothing to compete with. Even if they decide to use affiliate model, it will be $10 per player. I dont think you would make enough this way.
And contrary to what you were saying – the casinos here have a very powerful brand recognition – take MGM for example.
As an affiliate I’d rather be playing in a market of $10b a year and fighting for my share – than playing in a market of $1b a year if it’s banned and money payments are totally outlawed.
You are wrong – big markets do not allow small players. And for the online gambling to be what it used to be – it needs the gray area – not legal, but not illegal, just the way it used to be.
Completely disagree …
but I think you should follow your own advice and get out now.
