New Survey: Major Hurdles Now behind the Online Gambling Industry

According to Martin Oelbermann, an analyst with MECN, his firm surveyed close to 100 gaming experts from around the globe for this new report.
 
Oelbermann said the recent weeks were the “toughest ever” for the online gambling industry, as the U.S. House of Representatives passed the draconian Goodlatte/Leach Bill, an online gambling prohibition; the CEO of online sports book site BetonSports.com was arrested by the FBI; and the high courts in Germany limited the validity of private betting licenses.  “These are just a few of the recent shockwaves to hit the online gambling industry,” said Oelbermann. “It is particularly the rapid succession of these events in just a few short weeks that shocked the industry.”
 

Strategic Approaches

 
These events have led to a high demand for more detailed information about how the online gambling industry sees the current critical issues and what the potential strategic approaches might be, said Oelbermann.
 
The thinking of the industry leaders is as follows:

* Ninety eight percent of online gambling experts believe that the recent shockwaves will have only “a medium-term impact” on the industry;

* Twelve percent of the industry insiders surveyed believe that the arrest of the CEO of BetonSports is just a problem for BetOnSports.

* Thirty five percent of the insiders believe that the stock market overreacted to the events.
 
What is more, 77 percent of the experts think that the planned initial public offerings (IPOs) by some online casino companies may have to be postponed to let the adverse publicity become a thing of the past, and not weigh on investors’ minds.
The news of the survey comes as former online gambling executive David Carruthers was freed on a $1 million bond Wednesday after a month behind bars after his arrest at Dallas/Fort Worth Airport on an array of what some believe are trumped-up charges. To put that in perspective, the CEO only has to plunk down $100,000, or 10 percent of that amount, as a surety that he will appear in court again.
 
Carruthers, 48, was freed after a hearing before U.S. District Judge Mary Ann Medler. The former BetOnSports Plc. president will stay in a luxury hotel near St. Louis, but will be allowed to leave the hotel to go to court, visit the doctor, or meet with counsel.
 
Joe Kelly, a business law professor and expert on Internet gambling, said it was most likely that Carruthers' attorney was negotiating with prosecutors to work out a plea deal.
 
Sitting at a court room table, Carruthers spoke and asked the judge a single question: "The house incarceration: Is that 24 hours a day?" The answer from Judge Medler was: yes.

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