MGM Grand comes out in favor of legalized internet gambling

[The Judge]

MGM Mirage Considers Online Gaming within IGREA Framework
The Senior Vice President of MGM Mirage, Alan Feldman, has given his backing to the Internet Gambling Regulation and Enforcement Act (IGREA) proposed by Rep. Barney Frank.

The MGM executive stated that if online gaming became legalised under the proposed bill, they would enter the online arena as quickly as they could.

"We would have it up and running within a year. And I have to believe that just about everyone will get involved at some level. All the major players," Feldman said in an interview with the San Francisco Chronicle.

“All the major entertainment companies will get involved, too. Sony, Apple, Universal, Columbia, Time Warner. It just seems logical that at some point they would find their way into the industry.

Even a company as family-oriented as Disney could get involved in opening an Internet casino, he said. "I know Disney has certain beliefs about its core brand structure that could prevent it, but they could always create a sub-brand, as they do with their movie company Touchstone Pictures which produces R-rated movies."

MGM Mirage owns and operates numerous major Las Vegas casinos, including MGM Grand, Mirage, Monte Carlo, Bellagio, Mandalay Bay and Luxor.

MGM Mirage previously operated an Internet casino from the Isle of Man from 2001 to 2003, that was open to people in every country but the United States. The casino failed, Feldman said, because of that ban.

"About 70 percent of the global online wagering market is from the U.S.," he said. "So we were competing, with only 30 percent of the market. It wasn't enough to be profitable. But with the U.S. market under Frank's proposal, it would be profitable,” he predicted.

If the bill passes, MGM Mirage will operate its Internet casino from Nevada. "That's the point (of the bill)," he said. "For the home state to get the tax benefits."

[rjb1816]

anybody have ideas about the pros and cons of this happening? for example what the ramifications would be? such as how you would get taxed on winnings, could you write off your losses? different books you think would open up?

[johnny1212]

Everyone will enter but the solid offshore books will still be around for people who don't like the tax or want to bet on professional sports since this bill allows professional sports leagues to opt out.

[The Judge]

Originally Posted by rjb1816

anybody have ideas about the pros and cons of this happening? for example what the ramifications would be? such as how you would get taxed on winnings, could you write off your losses? different books you think would open up?

It is not clear how any new law would address the tax issue but in the UK, personal gambling activities are not tavable unless a person has registered with Inland Revenue as a professional gambler. The books themselves are taxed a very small percentage on their total action which I believe is less than 5%.