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what are overseas gambling companies
thevillagewell | November 24, 2022
Foreign Gambling Firms Flocking to U.S.2. Ruling on Overseas Gambling Companies Could Spur Investment
As the Trump administration continues its crackdown on offshore gambling, foreign operators are nonetheless finding ways to set up shop in the United States.
This week, a federal judge in New York ruled that a 6-year-old law banning most online gambling was unconstitutional. The decision could clear the way for foreign firms to establish themselves in the U.S. market.
The ruling stemmed from a case filed by offshore gambling firm Golden Nugget, which argued that the law – known as the Unlawful Internet Gambling Enforcement Act (UIGEA) – unfairly targeted them while allowing domestic companies to continue operating.
Judge Paul Oetken agreed, writing that the law "plainly discriminates against nonresident companies" and represented an "unconstitutional discrimination against interstate commerce."
While the Golden Nugget victory is seen as a major win for the offshore gambling industry, it is also likely to spur investment by foreign firms looking to get a foothold in the lucrative U.S. market.
The ruling comes as Trump's Justice Department ramps up its efforts to shut down unregulated online gambling operations, which it says pose a national security threat.
In March, the department announced that it was seeking to seize control of three major offshore gambling domains – .com, .net and .org – on the grounds that they were being used for illegal activities.
3. State Officials Eye Changes in Law to Boost Revenue from Overseas Gambling Companies
Amid the state government's scramble for more revenue, officials are eyeing a change in the law to allow it to get a bigger piece of the action from offshore gambling companies.
The proposed amendment to the law, which would be submitted in this legislative session, is under consideration as an option to help close a $2.3-billion budget gap, according to people familiar with the proposal who were not authorized to speak publicly about it.
There is no estimate yet of how much additional revenue could be generated by such a change, but one advocate of the idea said it could bring in "hundreds of millions of dollars."
Nevada is one of only three states — along with Delaware and New Jersey — that currently allow some form of online gambling. The industry has taken off since Nevada first allowed it in 2013, with companies such as Las Vegas Sands and Wynn Resorts Ltd. amassing large international customer bases.
But the state has seen only a fraction of that revenue because offshore companies have been able to avoid taxes and other regulatory requirements by operating out of other countries. Legislation being drawn up by Assemblyman Nelson Araujo, D-Las Vegas, would require those companies to partner with licensed Nevada operators and pay a tax on their gaming revenues.
A spokeswoman for Gov. Brian Sandoval declined to comment on the proposal, saying only that the governor is always interested in finding new ways to grow the economy and create jobs.
Supporters say the change is needed because Nevada's existing regulations do not apply to companies based outside the United States. They also note that many U.S.-based casino operators have been left out of the industry because they are not licensed in other countries.
"What we have now doesn't work," Araujo said in an interview Thursday. "This gives us an opportunity to level the playing field and bring these companies into compliance while generating revenue for our state."
The proposal comes at a time when state lawmakers are under pressure to find new sources of revenue as they face mounting budget deficits. Lawmakers are considering a range of options, including new or increased taxes and fees, as well as proposals to borrow money or reduce spending on education and health care programs.
4. Delaware Considers Allowing Overseas Gambling Companies to Operate
Delaware may soon allow gambling companies from other countries to operate in the state.
This week, the Delaware State Senate passed a bill that would legalize gambling companies from outside of the United States. The bill will now head to the House for a vote.
Supporters of the bill say that it will help create jobs and generate revenue for the state. They also argue that it will make Delaware more competitive in the online gambling market.
Opponents of the bill say that it could lead to increased crime and addiction rates. They also argue that it could hurt local businesses that offer gambling services.
The House is expected to vote on the bill in the coming weeks.
5. Rhode Island Looks to Benefit from Growing Trend of Overseas Gambling Companies
Rhode Island may be seeing some benefits from the growth of overseas gambling companies. The state's Division of Lottery has entered into a new agreement with Intralot, a global lottery operator, to provide Rhode Island with new and innovative gaming products.
The move is seen as a way to help Rhode Island keep up with other states that have already partnered with Intralot, including Massachusetts, Delaware, and New Jersey. Rhode Island lottery director Gerald Aubin said that the new agreement will give the state access to cutting-edge products such as virtual sports and instant win games.
Intralot has been in business since 1992 and operates in more than 35 countries. The company has been expanding its operations in the United States in recent years, and now operates lotteries in 14 states.
The growth of overseas gambling companies is seen as a positive for Rhode Island because it could lead to more jobs and revenue for the state. Gambling companies are typically willing to invest more money in new technology and products than domestic companies, so Rhode Island stands to benefit from this trend.
In addition, many of these companies are willing to partner with state lotteries to offer exclusive gaming products that can't be found at casinos or racetracks. This could help Rhode Island attract more tourists and generate more revenue from gambling taxes.
The Division of Lottery is hopeful that the new agreement with Intralot will lead to continued growth for the state's lottery industry.
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