CNN Report: Internet gamblers can afford it

*TT* · #1 05-09-2006, 11:13 PM

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Report: Internet gamblers can afford it

Tuesday, May 9, 2006; Posted: 12:46 p.m. EDT (16:46 GMT)

CARSON CITY, Nevada (AP) -- A gambling industry survey shows that people who use the Internet to place their bets tend to be affluent and educated -- a finding that could help advocates of a federal law change to legalize such wagering.

Release of the American Gaming Association survey on Monday follows the Washington, D-C.-based casino trade group's recent call for a congressional study of Internet gambling now that other countries, including Great Britain, are moving to authorize online betting.

Frank Fahrenkopf Jr., AGA president, said the group has opposed legalization of Internet gambling in the past "because regulators were opposed to it, and we're the strongest supporters of tough regulation."

"But the technology has changed greatly, and now Great Britain is legalizing online gambling -- and we're saying that Congress ought to take a look at (online gambling)," Fahrenkopf said.

"A lot of the opponents have been saying that the people who gamble on the Internet are the ones who can least afford it," he added. "But look at this survey. It shows they tend to be more educated and have more money than other people."

The survey of 552 Internet gamblers, conducted by Peter D. Hart Research Associates Inc., showed 41 percent had incomes of more than $75,000 a year, while only 12 percent had incomes of less than $35,000.

More than two-thirds of the online gamblers were men, more than two thirds were under age 40, most had started such gambling only in the last two years, 61 percent had at least a college degree and nearly half of those responding said the biggest reason for Internet betting was convenience.

The survey also said 55 percent believe online gambling companies find ways to cheat, and fewer than one in five knew or would admit that online gambling currently is illegal in the United States.

On other subjects, the survey showed:

The 455 commercial casinos in 11 states generated $30.29 billion in gross gambling revenue last year, for an increase of nearly 5 percent over the preceding year.

Las Vegas revenues surpassed $6 billion and Atlantic City revenues surpassed $5 billion for the first time.

A poker boom that started in 2004 is still going strong, with nearly one in five of those surveyed saying they played poker last year.

The gambling industry employed more than 354,000 people and paid wages of more than $12.6 billion last year. The industry also paid $4.92 billion in taxes and fees to state and local governments.

Those who responded to the March 18-21 survey were screened to ensure they were 21 or older and had made an Internet bet within the past year.

Because it's what's known as a "convenience sample" of a specific group, there's no reported error margin as there would be in a random survey of the general public.

Copyright 2006 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.

The DaveR · #2 05-09-2006, 11:22 PM

When one considers what it takes to gamble online regularly (a computer, an internet connection at home, and money that can be moved easily to services like Neteller), one thinks, "Duh."

The DaveR · #3 05-09-2006, 11:22 PM

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Las Vegas revenues surpassed $6 billion and Atlantic City revenues surpassed $5 billion for the first time.

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Can this possibly be true?

palman · #4 05-09-2006, 11:43 PM

I can't possibly see how LV doesn't have 3x the revenue of AC.

sweetjazz · #5 05-10-2006, 01:28 AM

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I can't possibly see how LV doesn't have 3x the revenue of AC.

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Having an ocean around leads to a lot of sales of suntan lotion. Lots of $$$ to be made there.

Miah · #6 05-10-2006, 02:29 AM

New Jersey isn't exactly what you would refer to as a poor state, there are plenty of people with money.. also don't forget all the people from NYC. At the Borgata on the weekends it's common to see minimum bets of 100 at the various tables.

I know lots of professional people that go to AC pretty regularly and bet the tables hard. That all said, I too find it surprising that AC would be so close to revenue in comparison with that of Vegas.

MaxPower · #7 05-10-2006, 03:29 PM

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I can't possibly see how LV doesn't have 3x the revenue of AC.

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Go to a casino in AC at 10:00 AM on a Tuesday and then go to a LV strip casino at 10:00 AM on a Tuesday.

*TT* · #8 05-10-2006, 03:45 PM

[ QUOTE ]
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I can't possibly see how LV doesn't have 3x the revenue of AC.

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Go to a casino in AC at 10:00 AM on a Tuesday and then go to a LV strip casino at 10:00 AM on a Tuesday.

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I can't confirm that the article's statement about revenues is correct, but Max Power has a point. AC is always rocking... Vegas is the city that sleeps. I've never seen the Bellagio, Mirage, Ballys, Wynn, MGM, etc as jammed as the AC casinos tend to get, I've seen (not often of course) waiting lines on the slots in AC. This is also a common occurrence at Casino Arizona, they just don't have enough tables/machines for their customers in the tent.

TT [img]/images/graemlins/club.gif[/img]

The DaveR · #9 05-10-2006, 04:43 PM

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
I can't possibly see how LV doesn't have 3x the revenue of AC.

[/ QUOTE ]

Go to a casino in AC at 10:00 AM on a Tuesday and then go to a LV strip casino at 10:00 AM on a Tuesday.

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I can't confirm that the article's statement about revenues is correct, but Max Power has a point. AC is always rocking... Vegas is the city that sleeps. I've never seen the Bellagio, Mirage, Ballys, Wynn, MGM, etc as jammed as the AC casinos tend to get, I've seen (not often of course) waiting lines on the slots in AC. This is also a common occurrence at Casino Arizona, they just don't have enough tables/machines for their customers in the tent.

TT [img]/images/graemlins/club.gif[/img]

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Then I don't understand why Borgata was the first new AC casino in like forever. I can't imagine AC real estate is more expensive.

MaxPower · #10 05-10-2006, 05:03 PM

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
I can't possibly see how LV doesn't have 3x the revenue of AC.

[/ QUOTE ]

Go to a casino in AC at 10:00 AM on a Tuesday and then go to a LV strip casino at 10:00 AM on a Tuesday.

[/ QUOTE ]
I can't confirm that the article's statement about revenues is correct, but Max Power has a point. AC is always rocking... Vegas is the city that sleeps. I've never seen the Bellagio, Mirage, Ballys, Wynn, MGM, etc as jammed as the AC casinos tend to get, I've seen (not often of course) waiting lines on the slots in AC. This is also a common occurrence at Casino Arizona, they just don't have enough tables/machines for their customers in the tent.

TT [img]/images/graemlins/club.gif[/img]

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Then I don't understand why Borgata was the first new AC casino in like forever. I can't imagine AC real estate is more expensive.

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I can't say for sure, but I think it has a lot to do with the New Jersey legislature and the way gambling is regulated. It is not like Vegas where you can just have gambling anywhere. There are a only a few places where you can have casinos.

I do know that up unitl a few years ago the gambling revenues from the AC casinos was higher than the casinos on the Strip. The Strip might be more now because of all of the new casinos.

The bus traffic is the reason for the high revenues and it is why the AC casinos are packed all day. There are just a massive number of people who live within 2 hours of AC and their incomes are generally high. Other than its proximity to California, Las Vegas isn't really a great location.