TURNING THE TABLES ON US LAW

(638) (8-October-2006)

This could be good for British horse racing companies

Attempts to curb the use of various financial channels used by US players in online gambling could backfire on one of the chief supporters of an online gambling ban - the US horse racing industry.

The industry, which spends millions on US political contributions has consistently been given exemption, or "carve-out" status over the years in the many bills proposed by US politicians that seek to hamstring Internet gambling. This protects its online betting facility whilst blocking competition.

But, the UK newspaper The Scotsman points out this weekend, the US Congress's decision reeks of hypocrisy because online betting on horse racing is still allowed, and that could be good news for the British racing and betting industries, including betting exchanges.

A spokesman for one betting exchange operator told the newspaper: "The exchanges could see this ban coming, as our own legality and existence has been challenged in the USA.

"It seems like a disaster for those firms who dealt mostly in online poker, but the exemption for horse racing could be very good news for British racing and online bookmakers as well as exchanges.

"If the industry gets its act together, there could be a big future in broadcasting our [British] racing to the USA and taking bets online from over there. After all, we now know they're legal!

"You can now see American racing on satellite television here in the UK and bet on it every night, so why not do it vice-versa and have Americans betting on our racing?"

The Scotsman was also critical of the US attempt to interfere with Internet based payment systems and ISPs, commenting: "The US government formally protested when China started censoring American-based internet search engines, but by using the device of stopping payments to internet gambling companies, they have effectively made the Federal government an internet policeman as far as gambling is concerned. 

"When Congress banned online gambling in the USA last week, in one fell swoop they declared economic war on Britain while simultaneously ending the notion of cyberspace as a "government-free" territory."