A proposed federal Internet gambling bill released last week is likely to face resistance in Delaware, where the bill could override state laws, according to professors.
Economics and public policy professor William Latham said he thinks the state is unlikely to pass the bill, which can be adopted through an opt-in program, because Delaware wants to remain competitive with neighboring state casinos.
“States have too much interest and too much invested in their gambling laws,” Latham said.
The bill, titled the Internet Gambling Prohibition, Poker Consumer Protection, and Strengthening UIGEA Act, would limit online gambling to poker and off-track horse betting.
It is the latest in a series of proposals by Democratic Sen. Harry Reid of Nevada, Republican Sen. Dean Heller of Nevada and Republican Sen. Jon Kyl of Arizona. If passed, the bill would supersede Delaware’s latest law that allows more virtual casino games.
The legislation, The Delaware Gaming Competitiveness Act of 2012, was signed by Gov. Jack Markell (D-Del.) in June, making Delaware the first state to authorize Internet casino gambling with online versions of slot machines, poker and roulette.
Sociology and criminal justice professor Tammy Anderson said that some Delaware politicians are working to expand the casino industry.
“There is a profound belief for those that endorse expansion of gaming that it is good for the economy,” Anderson said.
In Delaware, table gambling, sports and horse betting all take place in the same venues, according to Latham. The state’s three casinos are Delaware Park, Dover Downs and the Harrington Raceway and Casino.
Anderson said under the Delaware Gaming Competitiveness Act, each location would have its own virtual gaming website that would be controlled and operated by the Delaware Lottery.
“Most of the gambling is supposed to come through the three brick-and-mortar casinos,” she said. “When you log on you will now see an online gambling option.”
According to Latham, current gambling laws are aimed at keeping Delaware casinos competitive with popular Maryland and Pennsylvania casinos.
Latham said some Delaware residents are actually closer to Philadelphia casinos than they are to those in Delaware.
Anderson said that Markell and other officials are trying to expand Delaware’s casinos in order to keep players in-state.
“Delaware has been very successful in preventing people from going to Atlantic City to do their gambling,” Anderson said.
Online expansion furthers this goal, according to Latham. He said Delaware residents could be less likely to cross the border to play because online casinos allow players to participate from the comfort of their own homes.
If the state chooses to opt-in to the Senate legislation, much of the Delaware Gaming Competitiveness Act would become obsolete. Under Kyl and Reid’s bill, the added profits of online gambling in the state would be limited to poker and horse race betting, reducing players’ options.
Anderson said Markell and other Delaware Democrats would be reluctant to make the change. Democrats view casino expansion, including to online venues, as a viable way to raise state revenues and create jobs, Anderson said, so a proposal that decreases the variety of online options would not be well-received.
“Absolutely it would face resistance,” she said. “Markell spent a great amount of political capital in getting [the Delaware Gaming Competitiveness Act] accomplished.”
Even if the bill is passed in Delaware, it is unclear whether a change in Internet gambling laws would impact the university community. According to a study in 2011 by the Delaware Council on Gambling Problems, the majority of university students have gambled in their lifetime, but online play is less common.
The study found 26 percent of university students had gambled at casinos in the past year, while only 4 percent of those polled had betted online. Other types of gambling, including the lottery, sports betting and card games were more popular, according to the study.
Senior Andrew Berkowitz, 21, plays poker online and at casinos in Atlantic City, N.J., but said he does not think gambling is common among students.
“I’m one of the few people I know who actually gambles,” Berkowitz said. “College students don’t really gamble because they don’t have the money to do it.”
Sophomore Mike Tampellini, 19, said that he gambles at racetracks at home in New York.
“I don’t think a great percentage [of people] play online,” Tampellini said.
Anderson said that she does not think limiting the kinds of online games available would deter those that do play.
“They’ll just switch their games,” she said. “Whether you stem the tide of new people starting to gamble online is a different story.”
Berkowitz said he would not miss the games that would be illegal under the proposal, like roulette. Most table games are based on luck, he said, making it harder for players to control the outcome. Poker is the only came he feels he can have an impact on, he said.
According to Berkowitz, playing poker is easier online because there is no way to observe players’ body language that gives away information about what cards they are holding. But despite the ease of online gambling, he said he would rather play at a casino, where he can enjoy the environment of the floor.
“[As] a college kid it’s more fun to go to the casino ‘cause you can drink, socialize, have fun and you’re in Atlantic City,” Berkowitz said.
Anderson said the point of the bill is to prevent gambling addictions, and the games that are proven to be the most addictive would become illegal under the new proposal.
“The gambling addiction is highest with slot machines,” she said.
According to the DCGP, only 5 percent of students fit the criteria for problem gambling, while 1 percent of students could be categorized as pathological gamblers.
According to Latham, it is easier to find instances of addiction and dramatic money loss on campus than instances of successful play.
The issues, he said, could arise in any setting, whether someone plays online or at a casino.
Tampellini said he does not think gambling is a problem on campus because students are busy with classes and other activities.
“We’re occupied with a lot more stuff and we don’t have that much free time,” he said.
Berkowitz said he has not lost more than $100 playing poker. He plays recreationally, he said, unlike many of the players he sees at casinos.
“I will go with $100 to the casino,” Berkowitz said. “If I lose it, I’ll leave.”
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