One factor contributing to the increase in the number of online gamblers is ambiguity in the law. Numerous letters have been sent to major media firms, claiming they were aiding illegal gambling by posting ads for online gambling on their web sites. Such efforts seem to be somewhat in vain, since media firms continue to promote internet casinos. Even Google and Yahoo, the largest portals on the web have posted ads for online casinos.
It seems that online casinos may have lost the battle against the Justice Department but they are certainly winning the advertising war. Although there may be fewer banner ads for online casinos, the largest gambling sites are increasing their spending on everything ranging from sponsorships to marketing campaigns. GoldenPalace.com has begun advertising on major cable channels including ESPN and BetonSports.com is running billboard ads in major U.S. cities.
The Wire Act, the federal law pertaining most specifically to online casinos, forbids wiring sports betting information across state lines.
Some online casinos are not waiting for special laws concerning web gambling but instead focus on becoming big names in the internet casino industry. States such as Louisiana and Illinois have laws forbidding internet gambling, while other states do not have such specific rules but instead have more extensive gambling laws. In stricter states, online casinos run ads that promote games just for fun, or in other words, play-for-free. Ads for real money games are run in other states that are less strict about internet gambling.
According to Christiansen Capital Advisors, online casinos sites will generate about $7.5 billion in revenue this year, which is up from $5.7 billion last year. Next year will reap an estimated $9.9 billion in revenue and by 2010, an astounding $18.4 billion.
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