The Los Angeles Times is reporting that the world renowned and infamous casino tycoon, Sheldon Adelson, has recently come out of the closet as leading the charge against online gambling in the United States. The article, which can be found at http://www.latimes.com/nation/la-na-adv-adelson-online-gambling-20140521-story.html#page=1, details Sheldon Adelson’s recent statements regarding the online gambling industry and the supposed dangers associated with online gambling. Adelson’s seemingly self-serving position has been cloaked with the language of care and concern for the vulnerable.
According to the Los Angeles Times, Adelson recently stated in front of a University of Nevada-Las Vegas audience that he is “in favor of gambling, but [he is] not in favor of exploiting the world’s most vulnerable people.”
As the chief executive of Las Vegas Sands Corp, it appears as though Adelson views online gambling as a threat to his traditional casinos. The powerful casino mogul has been funneling significant resources to Republican governors that have been inclined to oppose internet gambling in the past. Among the recipients of Adelson’s contributions is the controversial Governor of Florida, Rick Scott, who has received over $750,000 in campaign donations from Adelson over approximately five years.
While it is uncertain whether online gambling poses a serious threat to traditional casinos, it is apparent that Adelson perceives virtual casinos to be a threat to his enterprise, and has expended vast resources in an attempt to thwart the growth of online gambling in the United States. Morgan Stanley has projected that online gambling could generate over $9 billion in revenue by 2020, a number substantially similar to the amount generated by traditional casinos today. Other estimates place the potential revenue of the online gambling industry at approximately $2 billion, which is substantially lower, but still a significant figure.
Some have argued that the revenues from online gambling will draw away revenues from traditional casinos around America; however, others have argued that online casinos should be viewed as a blessing for traditional casinos. Online gambling may increase the number of individuals who partake in gambling. As such, an increase in exposure to gambling via the internet may increase the number of individuals participating in gambling activities, and both traditional and online casinos would benefit from this expansion. Evidence that online and traditional casinos can peacefully coexist has been drawn from Europe, where the online gambling industry has not significantly hurt traditional casinos.
Moreover, by preventing the revenue stream from online casinos taking hold in the United States, a potentially significant tax windfall for struggling states is being foregone. Nevertheless, many see online gambling as the future of the gaming industry, and even some traditional casinos have accepted the inevitability of online gambling. Whether, and for how long, Sheldon Adelson can hold off online gambling from resurrecting itself in the United States remains to be seen, but it appears that he is determined to ensure that online casinos never manage to threaten his gambling empire.