Nevada has become the first state in the US to approve the practice
of internet gambling by casinos within the state. The move comes
despite the view of the US Justice Department which says that
internet gambling is illegal in the US. State officials in Nevada
think that future legal challenges could force the federal
government to change its position.
The Nevada Gaming Control Board and state Gaming Commission must
now draft and adopt rules to govern internet gambling in the state.
The state of New Jersey wanted to beat Nevada into the realm of
internet gambling through a bill allowing New Jersey casinos to
offer blackjack, roulette, slot machines and other games over the
internet. However, the bill has stalled.
According to the Associated Press, experts estimate revenue from
internet gambling in the US, currently based off-shore due to its
illegality, reached $1.5 billion last year. The industry reportedly
could be worth $6 billion by 2003.
Hotel casinos with unrestricted licences in Nevada could apply
for a two year on-line licence for a $500,000 fee. This fee is said
to be an attempt to ensure that only reputable companies are able
to apply. Manufacturers of any interactive gambling devices would
pay a $250,000 licence fee, a $100,000 fee would be assessed
against a manufacturer of equipment associated with a gambling
device, and a $50,000 fee would be charged for a licence to
manufacture peripheral equipment.
Casinos would pay 6% tax on any gross winnings.
