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Showing posts with label US online gambling. Show all posts
Showing posts with label US online gambling. Show all posts

Thursday, July 21, 2016

More US States Considering Legalized Online Gambling

We continue to see more states in the US  floating legislation to legalize online gambling. Poker continues to be in the spot light as opposed to casino style slots or blackjack. Michigan and Rhode Island are the latest states to join the fray. Essentially, the states are looking for more revenue sources and online gambling appears to be an option. The new states  considering legalized online gambling intend to impose licensing fees on the online gambling operators. Both Michigan and Rhode Island have land based casinos thus following the trend of other US states (Nevada, Delaware and New Jersey) with land based casinos to be the only states where online gambling is either legal or being considered.

Michigan -  Michigan has a population of 9 million people similar to New Jersey's population. Michigan also has land based casinos. However, Michigan's casino are  native american tribal owned and operated.  The  legislation is poker focused only  and does not include any  table  or slot games.   The  proposed Michigan  online gambling proposed licensing fee is 5 million USD with an additional  annual gross revenues tax of 10%.  Certainly, Michigan's population should be able to support a robust poker community.  However, a full casino offering would make for a much better business model and ultimately a better revenue source for the state. 

Rhode Island -   With a population of 1 million residents Rhode Island is following the lead of Delaware as a state with relatively few residents offering legal online gambling. It appears that the Rhode Island online gambling legislation  will be poker "only".   However, this could change with Rhode Island adding casino games mirroring Delaware online gambling options.   Delaware is quite pleased with the revenue it has garnered from online gambling leading Rhode Island to believe it can also benefit from legalized online gambling.  However,  poker may be a challenge given to relatively small population of the state. It is most likely that Rhode Island will poker poker players across state lines and with UK players.  

Population Density -  If Michigan and Rhode Island join the other states that currently offer legal online gambling  the  combined  total population of  the states that will be offering legal online gambling  is 23 million. Of course, one has to be 21 years of age to gamble so the total gambling population is lower. However, if we presume that the adult population of these states is 75% the  eligible gambling population is 17 million.  This is not a trivial number of potential online gamblers.  If poker is the only gambling option in Rhode Island  the population may not be able to support a robust poker community.   With this said it appears that poker is "working" in Delaware which has a similar population.  

Poker Player Liquidity And Players - Providing online gambling legislation is passed in Michigan and Rhode Island the result will be a meaningful population of US based gamblers. Poker appears to be the current focus for US based online gamblers. However, liquidity is always an issue  with poker as it requires a significant amount of traffic to make for a viable poker community. We have witnessed this as New Jersey has teamed with UK online poker sites to improve its own liquidity.

Poker License Barrier -  We will also have to see how many operators will be able to pay for the up front licensing  fees. The Michigan license fee is non-trivial at a 5 million USD starting point. This fee will certainly prune the candidate pool of potential online poker businesses operating in Michigan  and how many operators can coexist in the state. It will also be interesting to see how many non-US based poker rooms will participate launch in these newly added states. The Israeli based poker businesses(Pokerstars, 888, etc.)  have and are active in the other US states and will most likely extend their presence into the new states.

The recent announcement by Michigan and Rhode Island that their state governments are interested in legalizing online poker  demonstrates a growing trend on the part of US states with land based casinos to add online gambling as a regulated activity. Ironically, poker as opposed to  the real land based money makers like slots and other table games being launched online. Certainly there will be a gestation period to determine how online poker is working in individual states and how pooling players across state lines is perceived. We might see the US Justice department step in as cross state line online gambling becomes more prevalent. However, for now it appears all systems are a go and the US online gambling is a growing business sector.



Kevin Flood is the CEO of Gameinlane, Inc. Gameinlane  has developed, launched and operated Internet gambling sites in Europe,  social casino,   freemium and subscription gaming in the US.   The company engages with land based casino  operators, online gambling operators, social casino operator and game developers to assist them in determining their strategy and implementation  of game content in an online context.   Kevin has worked for and with US land based casino operators helping them evaluate social casino and iGaming platforms for the purpose of joint ventures and acquisitions in addition to launching online gambling operations in Europe. Gameinlane is also startup "friendly" understanding the unique value new gaming companies bring to the marketplace.  Kevin frequently speaks at gaming conferences around the world providing him with a unique perspective on this very interesting business sector. Kevin can be reached at kflood@gameinlane.com  and or twitter  at @kflow1776.



Monday, June 13, 2016

If Elected President Will Donald Trump Endorse Nationwide Legal Online Gambling In The United States?

There has been plenty of press over the last several years indicating that Trump is a proponent of legalizing online gambling in the United States. Back in  2011 a Forbes article identified Trump as a proponent of "Online" gambling. His associating with the online poker business Ultimate Gaming  also indicates that he is interested in the online gambling space. Trump has also been involved in the land based casino business  having launched land based casino's in New Jersey. This indicates that Trump is not adverse to "Playing" the gambling card if he wants to fund certain US projects but is constrained by outstanding debt. 

To date he has not mentioned this association in his current bid to obtain the Republican bid for the white house. However, with current US debt is 13.8 billion dollars and   no signs of  decreasing his "trump" card could be to promote online gambling for the purpose of raising tax revenue to fund specific projects and initiatives. His endorsement of online gambling may also be leveraged to raise campaign funds from businesses interested in launching gambling venues in the US. 

Another factor impacting his decision on online gambling is Sheldon Adelson's stated opposition to online gambling in the US . Sheldon is also a land based casino operator with political connections that has flip-flopped on the online gambling subject.  It is still not entirely clear why Sheldon, a one time proponent to online gambling, has recently turned so negative on its proliferation in the US. However, Sheldon is a heavy hitter in terms of his wealth and political clout. With this said, his proposed legislation banning online gambling in the US has gone nowhere in congress. Clearly, someone with bigger pockets has decided that federal online gambling may indeed  be a very good source of tax revenue.  Also, Trump is competitive and  has a mind of his own which may factor into his support of online gambling in the US despite Sheldon's current position on online gambling. 

European online gambling regimes also need to be taken into account  when evaluating Trumps potential endorsement of online gambling legislation.  Europe has a hodgepodge of successful offshore hosted online gambling in Malta, Alderney and Gibraltar and country based online gaming. For instance The UK has a long tradition of offering legal online gambling which is generating hundreds of million pounds per year.  To date we have not seen any rollback of these venues. In fact many online properties are thriving and meaningful tax revenue is being generated by these properties.  

Trump has no fear when it comes to controversial issues. Online gambling certainly has been controversial in the US. However, it can also be a great source or revenue and jobs in the US. Restricting gambling to land based venues is a bit silly and arcane and there is no proof that online gambling has any negative impact on land based gaming revenues. The world has moved on and Trump may very well play this card if he is elected.

Kevin Flood is the CEO of Gameinlane, Inc. Gameinlane  has developed, launched and operated Internet gambling sites in Europe,  social casino,   freemium and subscription gaming in the US.   The company engages with land based casino  operators, online gambling operators, social casino operator and game developers to assist them in determining their strategy and implementation  of game content in an online context.   Kevin has worked for and with US land based casino operators helping them evaluate social casino and iGaming platforms for the purpose of joint ventures and acquisitions in addition to launching online gambling operations in Europe. Gameinlane is also startup "friendly" understanding the unique value new gaming companies bring to the marketplace.  Kevin frequently speaks at gaming conferences around the world providing him with a unique perspective on this very interesting business sector. Kevin can be reached at kflood@gameinlane.com  and or twitter  at @kflow1776.



Monday, April 18, 2011

How Will the US Justice Department's Arrest of PokerStars, Absolute Poker and Full Tilt Employees Impact The Impending New US Internet Gambling BIll?

Many people in and around the online gambling space are pondering how the recent US Department of Justice allegations and arrest of  PokerStars, Full Tilt and Absolute Poker associated individuals will impact the new US online gambling legislation being drafted and debated in congress.   

You have to step back a bit  and consider how close Senator Kyle and Senator Reid  came to tacking on an  online gambling amendment to an existing bill in the  fall of 2010 and the debate that  transpired  preceding the drafting of a proposed online gambling bill to understand the timing of this move.  

One of the hotly debated issues during the deliberations was the inclusion of existing online poker sites that where taking US wagers in the legislation. This would have allowed  the PokerStars of the world to turn their large trove of existing US gamblers into legitimate online gamblers when the  legislation was enacted. Many of the existing US casino operators have no online gaming players and no expertise in running online gambling operations. Obviously, Full Tilt, PokerStars and Absolute Pokers have players and expertise providing for a good partnership.

This lead the normally conservative casino operators to change their lobbying position relative to the acceptance of apparent violators of UIGEA to reenter the US market under  US casino brands. Some of the US casino brands lobbied hard for this and brought attention to the fact that for years companies like PokerStars had being taking US wagers despite UIGEA.

This added attention was a blessing and a curse for companies like PokerStars because people started to ask questions about UIGEA and why it was not being enforced.  Rumor has it that the Justice Department did not go after these companies because the law was essentially unenforceable and the Justice Department was concerned that if they did try to prosecute and lost a case then everyone would realize that there was really no US online gambling law.

I have no idea if this is true or not. However, apparently, people in a position of power started to ask questions and  challenged the Justice Department to either enforce the law or admit that it was unenforceable.

It appears that the Justice Department has decided to go forward  taking on Pokerstars, Full Tilt and Absolute Poker  in a court of law to determine once and for all if the UIGEA is viable.

Is this a good or bad thing for the current gambling legislation being debated in congress?

Oddly one could argue that the Justice Department move could improve the likelihood of a new bill being enacted that would open up online gambling in the US providing all operators and systems providers licenced to do so have no prior history of taking US wagers after UIGEA was enacted. In fact, this may be the real reason for the Justice Department 's swift move to identify which operators could and could not run online gambling operations in the US.

Of course, one could make the argument that all bets are off for new legislation in the short run. The dust may have to settle for a bit before anyone ventures forward. If this is the case Zynga once again becomes the big winner. They are making a fortune selling virtual poker chips in their poker room. No there is no cash out so no legal issue for them.

Kevin Flood is the CEO of Gameinlane, Inc. Kevin writes extensively about online games and their impact and integration into iGaming and E-commerce environments. Kevin is a frequent speaker at online game events and conferences in Asia, Europe and the US. Kevin and his Gameinlane team are currently working with online gambling, social gaming and e-commerce companies integrating social gaming with online gaming operations and integrate game mechanics into e-commerce applications.

Monday, November 1, 2010

How Will Social Gaming Impact US Legalized Online Gambling?

Lobbyists, state legislators, businesses and federally elected officials continue to encourage state and federal authorities to legalize online gambling in the US. The primary motivation continues to be the dire budget situation that most states find themselves in.

These efforts are largely focused on "traditional" online gambling games such as poker, blackjack, roulette and slot machines. The expected audience for these games are the 25 to 50 age group using the standard deposit, play and cash withdrawal models.

To date the efforts to legalize online gambling in the US have ignored the growing popularity of social games and their potential impact on players, conversion to gambling, virtual currency and virtual goods sales. The assumption is that social games are something different and will have no impact on legalized online gambling in the US.

Is this assumption correct?

I would argue that the current proponents of US legalized gambling should reconsider this position for a number of reasons.

Social Games As An Alternative To Traditional Online Gambling - Have entrepreneurs already figured out a way to circumvent US gambling laws? US entrepreneurs are a creative lot. When anti gambling legislation was passed in October 2006 entrepreneurs went to work figuring out other ways to attract online players to other forms of online gaming. In 2007 Zynga immediately launched a poker game in Facebook and later started to monetize players with virtual currency and goods sales. This has lead to an onslaught of online poker games and other monetized social games.

Average Age Of Facebook - Social gaming players are getting older. Facebook is the leading social gaming platform and its demographics have decidedly turned to the over 21 years of age crowd. This means that many of the potential US online gamblers are playing social games.

The Rise Of Virtual Gambling -Most social games monetize their games through virtual currency and goods sales. This form of "virtual gambling" is widespread with Zynga's and Playdom's poker sites rivaling the largest poker site in the world in terms or transactions and players. Zynga, Playdom and Facebook exploit virtual currency and virtual goods to simulate the real gambling experience.

Non Traditional Gambling Games - Farmville is the most commonly referenced social Virtual World/Role Playing Game with millions of players participating. This is just one example of a number of online games that simulate an investment, achievement and reward system that results in a significant amount of virtual currency and goods transaction.

Does The Popularity Of Social Gaming Signal A Change In Online Game Play Behavior? - The assumption is that when online gambling is legalized players will naturally convert to the traditional online gambling model. With all of the other social game options available and the associated restrictions inevitably associated with legalized online gambling is this assumption correct?

Will New Online Gambling Brands Have A Chance? In the US social gaming businesses own a large number of players with many of these players in the 21 and older category. What is to prevent them from converting many of those players to "real gambling" platforms operated by them?

Do European Online Gambling Operators Understand Social Media and Social Gaming? - Many of the European gambling operators are keen to get into the US market once online gambling is legalized. However, do they really understand how to market(and will they be able to?) their brands within the social networks? Are the existing US social gaming companies holding all the cards when it comes to player ownership and loyalty?

The points I have made are very real despite the fact that they address virtual online gambling. In many ways US social game operators have created their own form of virtual gambling and are doing very well. Even Facebook is in on the act with their newly minted virtual currency. That currency is fueling the social gambling phenomena despite what they would like everyone to believe.

The one point that traditional gambling operators make to support their differentiation from social gaming is the fact that a player can not "cash out" of a social game. This is true! However, with the world going completely virtual with Facebook credits being redeemed at Starbucks, Best Buy and WalMart does it really matter?

Tuesday, April 27, 2010

Game Platform Preparation For Legalized United States Online Gambling

The impending legislation to legalize online gambling in the US has ignited debate and speculation on how to prepare for and successfully launch and operate online gambling operations in the US. One of the major challenges for operators and game platform developers will be their ability to provide robust and scalable game content to address the large and sophisticated preferences of the US population. Building and managing reliable and scalable game platforms is a non-trivial. The act of crafting an online game strategy and executing the production, delivery, operation, integration and maintenance of games, game platforms, payment processing, age/identity/location systems is worthy of some serious planning.

Licensing Versus Build - I crafted a blog several months ago called "Should An Online Game Operator License Or Build Games?" I suggest you also read this blog to determine if building your own games/platform or having a third party provide you with a solution is the best way to go for your company. This decision has long term strategic business implications that are difficult to reverse once a path is chosen. The decision does not have to be binary. There are hybrids. However, the decision has significant impact on cost, staffing, organizational flexibility and market differentiation.

Even if you do decide to license games and a game platform the following points should still be taken into consideration when evaluating a vendors product offering.

The Primary Challenge(s) For Online Game Development - Online gaming is fundamentally different then most web applications. Online gaming is transaction intensive. The amount of transactions that occur per second in a popular online gaming site far exceed anything witnessed on a standard e-commerce site. Game applications are "state machines" that must be aware of what has happened, at a detailed level, at any instant in time in order to proceed to the next state. Game applications are data intensive requiring the capture and storage of every detail of game play. This level of detail is required to support the "state machinery", to address the need to audit previous game activity and to support financial transaction processes. Underlying the game play operation is a banking operation that has to be 100% accurate. Gaming platforms have to be secure to avoid internal and external attempts to influence game play and or to extract funds from the game system. Multiplayer games are social networks that include interaction in social and financial terms. Gaming sites are subject to legal scrutiny by state and federal authorities. To sum it up online gambling systems are complex and held to a higher standard then other web applications.

So how does a company, operator, IT or development staff successfully build and operate an online gaming platform.

It Is All About The Database - In many ways this is also true for web applications that are not gaming related. I start here because in almost every online game system I have built, managed or operated the DB has been the primary challenge. In the early stage of development the DB selection, architecture, IT layout, query creation and table design need to be fully vetted. This requires projection of loads, data types and usage patterns. Each DB has its strengths and weaknesses. The way the DB is constructed has an impact on performance, security, reliability, cost and talent required to make it operate efficiently.

Why is the DB so critical in a gaming application? Gaming applications are "transaction" intensive resulting in the accumulation of data at a rapid rate. Games require quick response time to keep up with game play and require knowledge of the "state" of play to determine the next step in the game play sequence. If a system/DB fails to address these fundamental requirements resulting in an incorrect outcome, hesitation in game play, slow response time, or an incorrect result the game is over so to speak. The DB is largely responsible for making sure the game platform is in equilibrium for maintaining the stability and viability of the game platform.

DB selection is important. Developer's and business owners have their prejudices. Prejudice should not cloud your judgment for the DB selection. Databases used in high transaction banking operations come closest to the type's of DB's appropriate for gaming systems. However, these can be costly and prohibitive for startup operations. Certain open source DB's are good alternatives with the caveat that DB architecture and design are even more critical when selecting open source DB solutions.

Avoid monolithic DB's and plan for sharding and or clustering of the DB to segment the DB. The divide and conquer approach provides isolation and will help to avoid an overload of any one server. Design a DB to allow it to be spread over multiple machines. This provides you with an option to add hardware to address DB performance issues.

Who writes the queries and who is in charge of the health, welfare and design of the DB. The answer is simple; NOT THE PROGRAMMERS!! Programmers are not normally DB architects and have a habit of developing queries without taking into consideration the big picture and an overall architecture. Also, some "frameworks" auto generate queries. This is also not a good idea. Each query should be specifically crafted to optimize performance.

Game development organizations should have a DB architect on staff to implement a DB design, create tables, create queries and to interact with business owners, project managers and developers determining the philosophy, design, table structure, layout and setup of the DB. The responsibilities of a database architect are different from a database administrator and are often confused. This confusion is understandable because some database architects can and do administer databases. The distinction between the two functions is very clear. An architect established the DB design, creates tables and queries. An administrator loads the DB on the hardware, does the backups/restores an sets up the monitoring of the DB.

Application Layer - The games will need to run on their own hardware separate from web serving and database activity. This will optimize game performance and provide isolation in case there is a problem. Reacting to problems quickly is important because of the financial implications.

No single application server should act as a "controlling" or traffic router in the application server mix. This will defeat the purpose of distributing traffic to decrease the risk of impacting the entire system if one server has an issue. All application servers should be created equal.

Web Servers - Web server technology, load balancing, logging, etc. has become standardized allowing operations to handle large transaction volumes associated with typical web traffic. Keep game play responsibility away from web servers. Web servers will handle registration, log-in, traffic monitoring and content serving. The heavy lifting will be done by the application servers and the DB. One exception is graphic content. Place graphics on separate web servers.

Caching - Caching is a way of storing information/results on application or web server without having to go the the DB to fetch the information. Caching is most effective when certain data is consistently being used and retrieved. This will off load strain on the DB and distribute the load to the application and web servers.

Plan and Design For Multiple Delivery Platforms - Plan for Facebook, mobile and multiple language deployment. Do not design your game platform to deliver content in only one environment. Develop your application to be deployed in social networks, on mobile devices and with multi language support. Social networks and mobile are especially important given the trend for consumers to exclusively interact in these environments.

Small Foot Print Client - The age of heavy, large and complex game clients is gone or has been marginalized for use in console game environments or MMOG worlds. Keep you client development light weigh allowing players to quickly engage(download) your games.

Age/Location/Identity - For compliance reasons your game system will have to know where a player is accessing your system from, where they reside and how old they are. This can be a fully automated implementation or a combined automated manual process. The implications of allowing a player to play on a gaming site this is underage or from a jurisdiction that does not allow online gambling will be severe. Creating these systems requires expertise in risk managment(AI) and access to multiple data source that provide the operator with comprehensive coverage of the target population.

Prepare For System Audits - A game system will be subject to audit to assure that the system is secure and the outcomes are fair and random. The game systems will be audited by third party organizations. They will determine go and no go. They could shut you down if your system is deemed vulnerable to internal or external attack. Prepare your code and system layout to make this process as painless as possible. Obtain the auditors guidelines beforehand to make sure you are not over or under designing you system for audit and compliance.

Payment Processing And PCI Compliance - The credit card companies have formed an alliance that dictates the level of security your platform will have to have to take credit card transactions. These guidelines are detailed and require a PCI knowledgeable individual or company to help you implement a PCI compliant platform. If you are caught not complying your credit card transaction processing could be terminate. Run through your own PCI audit before launching.

Tracking And Analytics - Google Analytics will not cut it. A system should be created that ties web traffic together with game play and payment processing activity. This is the only way you will get a complete picture of player behavior, marketing results, traffic and revenue per player.

Hosting and IT - Unfortunately "Cloud Computing" may not be an option because it is difficult to enforce PCI compliance in a Cloud environment. This will require the operator to locate a hosting facility in a jurisdiction that allows online gambling operations and has the infrastructure, bandwidth and expertise to support a sophisticated gaming operation. This may be one of the biggest challenges for game operators.

Denial Of Service And Intrusion Attacks - In Europe it is common for a gambling site to be subject to a denial of service attach and then a ransom to stop the attachk Get you hosting, network provider and development team together to craft a strategy to deal will the attacks.

Intrusion attacks conducted by robot scans of your URLS will also be common. The goal is to figure out a way to reverse engineer the URL to get access to your data. So, be careful how you construct your URL's. Do not forget about the URL's you put into e-mails and other promotions. The attackers scan these as well.

Engage a security service company to regularly scan you URL's for vulnerability. This we be required for PCI compliance as well.

Web Services - Your architecture and applications should be designed as web services with the appropriate standard communication protocols (SOAP/XML/Hybrids). Your applications will be accessing data from external systems and supply data to external systems. Do not back your platform into a proprietary setup.

Monitoring And Support - Support for game platforms go well beyond the needs of standard web applications. 7/24 of course. However, the financial implications to players, your company and to payment processors can be severe if the game system has downtime or unexpected failures. Do not skimp on monitoring software or you IT support staff.

In Conclusion - The eventual legalization of online gambling in the US will open up new and lucrative opportunities for businesses. It will also provide challenges for these businesses and their technical staff/partners to deliver and support operations that meet the requirements of their players, regulators and payment processors. Be prepared and design game systems with this in mind.

Saturday, March 6, 2010

Why Is It Important To Prepare For Legal Online Gambling In The US?

I am not sure if online gambling will ever be legalized in the US. If it occurs when it will occur, what form it will take or what restrictions will be associated with it. However, if one believes or hopes that it will occur waiting until the last minute to jump in could be a dangerous strategy.

Why?

Branding - Just because a company has an online gaming brand in Europe or Asia does not mean it has a recognized online brand in the US. Building brands online specific to a market is important because it establishes credibility and potentially results in an aggregation of online players prior to the legalization of online gambling in the US. This prior aggregation of online players can provide an advantage to online gaming brands when legislation changes. When the change occurs the online brands can market to their online players converting them to online gamblers.

PartyPoker and Zynga have US online gaming/gambling brands. They also have accumulated large numbers of free and micro-transaction players. If handled properly, a large number of those players can be quickly and instantly converted to gambling players.

If an operator waits to the last minute to build awareness of their brand they will already be competing in a crowded market with operators that have acquired most of the potential US online gamers.

Land Based Casinos - Having had the opportunity to launch online brands in Europe for land based casino brands taught me how difficult it is to establish online brand awareness for a well branded land based casino.

Branding a land based casino as an online brand can be as challenging as branding a completely new business. Just because you have a "great" offline gambling brand does not necessarily entice players to use your online property. This is especially true if the space is already occupied by well known online gaming brands.

Casinos should start to move online now establishing legal online gaming propositions to begin to build brand awareness, to get an understanding of online player characteristics and to begin to determine how many of their land based players will become online players.

Payment Processing - I work with many legal online gaming companies in the US. They range from skill game, sweepstakes and stock trading models. They all struggle getting payment processors to accept their transactions even though they are legal operations. I am not sure exactly why this is so difficult. However, I suspect the alien and suspicious nature of online gaming is a red flag for processors causing them to hesitate to handle online gaming transactions.

If a company waits to the last minute to establish their US payment processing relationships they could find themselves in a frustrating situation trying to launch an online gaming business without the ability to process payments. If an operator is interested in participating in online gambling in the US they should begin identifying US payment processors and secure relationships now even if they do not intend to launch an online gaming business in the immediate future.

Operational Acumen - Operating an online gaming operation is non-trivial involving technology, software development, legal work, player support operations, and online marketing expertise. Existing online gaming operators will have an advantage entering the US market because they have existing operations and knowledge of how to acquire and retain players. The one caveat might be the requirement by the US authorities to have all of the personnel and gaming machinery located in the US.

If this is the case it is another reason to get started now sorting out where to put the operation, hire staff, setup hosting arrangements, build technical infrastructure and to establish the proper hosting relationships.

Game Selection - Just because an online game is popular outside of the US does not mean it will be popular in the US. We see this in land based casinos as well as online. We also know that a popular land based game may not be popular online.

Each country and culture has its own bias related to game play. The online community has its bias relative to land based play. Operators will have to spend time researching what mix of online games work for the US audience.

The social or casual gaming space will prove to be most challenging for traditional offline and online gambling operators. These games are becoming very popular in the US and could be the predominant gambling type games when it comes to pure player numbers.

Operators will have to spend time researching and experimenting to determine what game and game collections are popular in the US. In some cases this may require operators and game developers to modify existing games, build new games or license games from third parties.

Demographics - Generally speaking online gamers are younger then land based gamers. This could have a significant influence on the games they will play, when they play and how much they wager. Getting an online presence in the US early is important to figure out the age breakdown of US online gamblers. This will influence how to market to the gamers and what game mix works for them.

Game License - With almost absolute certainty operators will have to obtain an online gambling license to operate in the US. With equal certainly the authorities will be more likely to grant licenses to operators that already operate in the US.

The licensing process could be a long drawn out affair that will favor companies that have relationships with federal, state and indian gaming authorities. Gaming companies need to be talking to and working with these groups and agencies, prior to legislative changes, to establish their credibility and make the authorities aware of their operations and the individuals involved in the operations.

Conclusion - The time to start US gaming operations is now if a gaming operator has any chance of being successful in the legal US online gambling business. The development and execution of a successful US gambling strategy will require significant effort, funding and planning to differentiate it from the numerous other companies that want to enter the space. A number of companies have started the process requiring interested parties to accelerate their planning for the "possible" opening up of the US online gambling market.

There is also great "risk" in early preparation for legal gambling in the US. No one is absolutely sure it will happen and how it will unfold. A concentrated investment in one area could prove to be wrong resulting in money spent in the wrong place or at the wrong time.

The collapse of the UK gambling bill is a discouraging historical precedent. Under full support of UK legislators a gambling bill was drafted vetted and moved forward to implementation. A late awareness, by UK constituents, of the bills full magnitude and scope caused it to be scaled back significantly. This caught many land based casinos off guard. They had invested large sums in property purchases and setting up operations. For the most part this investment was wasted.

A wise and thoughtful management team will set aside a prudent amount of funding for US operations and then decide on how best to invest the funds to make sure that it establishes a foundation for moving forward if the US gambling laws change.

When and if an online gambling bill is passed the companies that have established US online gaming brands, operations, and a preexisting player base will be the winners.