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In December 2008, with their stock prices crashing and their companies struggling under mountains of debt, the captains of the U.S. casino industry headed to the Las Vegas offices of IGT for a critical board meeting of the American Gaming Association. There were some huge egos in the room and the topic under discussion was whether their powerful lobbying group would change its position on Internet gambling. For years the industry had essentially opposed it, fearing cannibalization of the casino business and that the dark corners of cyberspace would be impossible to regulate. Some in the room, however, like Gary Loveman, chief of Harrah’s Entertainment, were pushing for a new policy. Loveman found himself vigorously opposed by billionaire Steve Wynn, who won the battle since the AGA’s bylaws required unanimity.
Las Vegas casino industry sat on the sidelines for another full year while offshore companies like PokerStars and Full Tilt Poker made fortunes from the massive U.S. online poker market. PokerStars became the biggest online gaming business in the world, with an estimated annual profit of $500 million. This fact did not escape the attention of the Las Vegas casino moguls who had turned their backs on the Internet. By March 2010 Wynn was no longer a member of the AGA and the industry had become convinced games like online poker could be adequately regulated. Loveman, whose company owns the World Series of Poker brand, had little trouble getting the AGA’s other board members to change lobbying policy. The March 2010 decision by the AGA’s board to support online gambling regulation represented a sea change and was one of the defining moments of the online poker landscape in the U.S and even the world.
CONTINUED ON FORBES
Las Vegas casino industry sat on the sidelines for another full year while offshore companies like PokerStars and Full Tilt Poker made fortunes from the massive U.S. online poker market. PokerStars became the biggest online gaming business in the world, with an estimated annual profit of $500 million. This fact did not escape the attention of the Las Vegas casino moguls who had turned their backs on the Internet. By March 2010 Wynn was no longer a member of the AGA and the industry had become convinced games like online poker could be adequately regulated. Loveman, whose company owns the World Series of Poker brand, had little trouble getting the AGA’s other board members to change lobbying policy. The March 2010 decision by the AGA’s board to support online gambling regulation represented a sea change and was one of the defining moments of the online poker landscape in the U.S and even the world.
CONTINUED ON FORBES