Conclusion: SIGHT Lives
Some casino operators, particularly those that have operations in Atlantic City, have begun to recognize the opportunities that Spectrum first identified 15 years ago. The future of gaming could ultimately rest on a business model in which adults who have a demonstrated propensity for games of chance make wagers from the privacy of their home, with certain assurances that the“ house” that is accepting wagers offers a known brand and the seal of approval from state regulators. Such players can earn rewards for their play that can be redeemed for room nights, meals, show tickets or free play at a brick-and-mortar casino.
Clearly, land-based operators do not hold a monopoly on reliable brands, and indeed numerous online brands have emerged in multiple industries in recent years that convey trust and reliability. Rather, we suggest that the added value of a land-based license simply helps ensure that reliability.
Comprehensive regulatory oversight can send a clear message that online gaming is operated by those who have demonstrated the requisite level of good character, honesty and integrity. The technologies exist to help ensure that it can be regulated in more than name only.
Take, for example, the following excerpt from a 2009 paper, Can Internet Gambling Be Effectively Regulated? Managing the Risks, authored by Malcolm K. Sparrow of the John F. Kennedy School of Government at Harvard University:
Notwithstanding the current prohibitionist legal and regulatory approach, millions of U. S. residents gamble online through offshore gambling sites. As a result, the United States finds itself in the unfortunate position of incurring all the social costs of online gambling while having no control over the gaming sites that serve U. S. residents. The United States cannot disqualify industry participants from competing effectively for U. S.-based customers or offer its residents any consumer protections. Nearly all states permit some form of commercial gambling, and the industry is large and well-established. Clearly, policymakers have extensive precedent from which to draw strategies to mitigate the potential social harms of gambling. Although some controls used in bricks-and-mortar casinos may not translate well to online gambling, several of the risks we examined become more amenable to control online. New technologies can be effective, even for those risks that are more difficult to address online. For example, geolocation and age verification technologies can help turn potentially significant risks into manageable ones. 14
Sparrow’ s views have been vindicated over time, particularly in the markets that have already authorized online gaming.
14
Malcolm K. Sparrow,“ Can Internet Gambling Be Effectively Regulated? Managing the Risks,” December 2, 2009, p. v, https:// www. standupca. org / legislation / sparrow. pdf
Observing 15 th Anniversary of SIGHT 13