[woodguy]

[ QUOTE ]

I'd love for this conspiracy to be true, but it seems like the conspirators went to an awful lot of trouble to achieve something they could have accomplished with much less effort and gotten done much sooner. If Harrah's or some other American gaming corp wants online gaming legalized, why not just go through the typical lobbying channels? If Harrah's, Caesars Ent., MGM et al want Frist or some other Senators do something for them, they typically just cut a bigger check and send it directly to their campaign coffers, or threaten to fund their opponents -- not engage in long, drawn-out legislative shenanigans that would invariably cost them lots of money if this was their 'real' motive.

Party made something like $850 million dollars in revenue last year. I suspect a legitimate American company with huge brand awareness and endless resources like Harrah's or MGM could make two or three times that if given the opportunity. You think they're going to spend a year or two orchestrating this kind of conspiracy when they could be making all that revenue right now? If the answer is "but they want to gain market share" -- that seems pretty silly. Party/Stars/888.com couldn't hope to compete with the B&M behemoths and their aura of legitimacy/infinite advertising resources/huge brand awareness.

[/ QUOTE ]

Do not underestimate the cost of starting a new online gambling venture and actually get past the break-even point.

Not many would gamble at "Harrah's Online Casino", just because it was Harrah's.....so what? They would be a late comer to a market that is already oversaturated.

But.....

What if you could essentially cut off 80% of your future competitors income, while at the same time become of one of very few servicing the industry (US)?

That is worth many multiples ove the $19,250 that is recorded as being Harrah's official contribution to Frist. (the number is probably higher, probably significantly higher if Frist had any idea how much it was worth)

I would personally pay over $1 Million (depending on how long I could have the market virtually to myself), and my business only generates about $30 Million in revenue per year. That's revenue, not profit.

Tin-Foil-Hat firmly in place,
Woodguy