Legal Uncertainty Forces MGM To Close Online Casino

by Glen Shapiro, LawAndTax-News.com, New York

06 June 2003

Online gambling giant, MGM Mirage announced this week that due to the 'unclear' legal and political climate surrounding internet gambling in the United States and elsewhere, it will be shutting down its website.

The company has long since refused to accept business from US punters, fearing that it could jeopardize licenses granted in the US for its brick-and-mortar operations. However, this, combined with the fact that the firm was obliged to 'adhere to the highest of all possible standards to protect...[its] license' meant that MGM Mirage could only operate in a few countries, and was at a serious competitive disadvantage.

Speaking to CBS MarketWatch following Wednesday's announcement, Terry Lanni, CEO of the online gambling firm observed that millions of US citizens 'currently participate in online gaming in an unregulated environment,' and predicted that:

'The day will clearly arrive when this activity will be legalized and regulated and we will participate fully at that time.'

A vote on proposed internet gambling legislation which would have clarifed the situation - albeit by blocking credit card payments from US citizens to online gambling sites - was cancelled on Tuesday, after it became clear that the bill did not have enough support in the House of Representatives.

According to reports, the bill was pulled from consideration by House leaders after two Republican Committee chairmen, and several leading Democrats revealed that they would vote against it

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