The 16th annual East Coast Gaming Congress took place in Atlantic City on May 16th and 17th. The congress features proven leaders in the gaming industry and panel discussions by experts and politicians. The conference invites industry leaders to “share ideas, express concerns and articulate visions.” This year the legalization of online gambling in the United States was a hot topic at the gathering. Richard Bronson, the chairman of turnkey supplier US Digital Gaming, said that he believes that the US congress is too badly divided to enact any legislation dealing with online gaming. Gridlock in Washington has been a sore point for just about everyone. Bronson stated “In a Congress that can’t agree on what day it is, the thought that they’re going to agree to put casino gambling in every living room in America is ridiculous.” One proposed federal law would legalize poker but games kike >online bingo and slots would remain illegal.

Bronson says that he believes that the only way to legalize online gambling is for individual states to pass their own set of laws regulating online gambling. Bronson predicted that one or two states will have legalized online gambling by the end of this year. Bronson said that New Jersey will probably be the first state to legalize online gambling. Bronson also told the audience that legalized online gambling has considerable commercial potential. Last year 40 million people visited Las Vegas but every five days 40 million people log into their Facebook accounts. Bronson said that it is stupid to let such an opportunity go untapped.

New Jersey State Senator Ray Lesniak was one of the speakers at the conference. Lesniak sponsored a bill that is currently moving through the New Jersey assembly that will legalize online gambling in the state. Lesniak said that last year’s veto of an online gambling bill by Governor Christie has cost New Jersey plenty. Lesniak stated “We lost a whole year and hundreds of millions of dollars that could have been coming in to our casinos in Atlantic City.” Eugene Johnson, from Spectrum Gaming consultancy, said that several gaming companies are preparing for legalization. Johnson said his company has been approached by European online gaming operators, US gaming companies, Native American tribes and some state lotteries. Johnson said that online gambling is “the wave of the future” and told attendees that “If you don’t evolve with the future, you’re going to be left behind.”

In China it may be the year of the dragon but in the United States 2012 may very well be the year of the online gambler. In December the Justice department issued a ruling that may clear the way for online bingo, poker and casinos in several states. Many states have already indicated that they are considering the possibility of offering intrastate online gambling. The potential revenues are particularly attractive for states facing massive budget deficits and debt. According to the justice department ruling only sports betting is prohibited online.

Rick Bronson, chairman of U.S. Digital Gaming, said that the new ruling will give states the ability to offer online poker and lottery ticket sales. In addition to skill based games like poker some states say they will offer other games such as online bingo. Bronson estimates that online poker could generate $12 billion a year in revenue for states and that online lottery ticket sales would increase profits for state lotteries. Currently state lotteries generate between $60 and $70 billion annually. A 2010 report by Morgan Stanley estimated that internet gambling could bring in $5 billion annually.

Whittier Law School professor and gaming law expert I. Nelson Rose said that the Justice Department move is a “major Christmas present for the Internet gambling community.” Rose went on to say “We are about to see this explosion of Internet gambling sweep across the nation. All we’re seeing is every single state proposing more and more legal gambling. … Gambling is seen as a painless tax, involuntary tax so it is an easy way to raise revenue without raising real taxes.” Nevada is already poised to implement online gambling. Kentucky Governor Steve Beshear is promoting expanded gambling in the state and Illinois hopes that online ticket sales will boost sales.

Washington D.C. had plans to launch online bingo and poker gaming sites but last week the city council reversed course and gambling proponents will have to start over. Rose pointed out the need for extra revenue and stated “It’s money and [states] can’t raise taxes anymore and they can’t cut services anymore so they need a way to raise money and gambling seems to pay more tax.” For legislators raising taxes would be political suicide in today’s economic climate. Rose also said that states must have programs in place to identify problem gamblers and prevent underage gambling. In several states 2012 may very well be the year of the online gambler.