Their proposed legislation would make it illegal to operate virtual casinos, but it would exempt parimutuel wagering and some forms of Indian tribal gambling. The nation's largest casino companies are poised to leap into the fray when the federal government and industry regulators loosen their opposition to Internet wagering. Harrah's Entertainment and MGM Mirage this summer entered into joint ventures with online software giants that allow casino enthusiasts to play games for prizes and vacation discounts. The American Gaming Association, the commercial casino industry's trade group, once called for a ban on Internet wagering, but has softened and now suggests more regulation. The more than 300 Indian casinos operated by 195 tribal governments have long sought exemptions from congressional efforts to ban Internet wagering.
Security is crucial to Internet gambling.
So is the integrity of the games. Industry leaders claim the entry of the most reputable U.S. casino and software companies will drive unscrupulous offshore operators out of business. Specialists in the treatment of problem and compulsive gambling aren't enamored with the notion that Web browsers can wager hundreds of thousands of dollars without leaving the comfort of their own homes. The media is already full of horror stories. But regulation may not be enough to prevent problem and compulsive gamblers from being victimized on the Internet.