Trump Entertainment Resorts Inc. is set to partner with Lasry’s Avenue Capital Group to venture into the online poker industry. Both parties are hopeful that the US will legalize online gambling and allow the companies to offer online poker games to Americans. Ever since a take over contract was signed between the two companies, Trump Entertainment’s operations have been controlled by Avenue Capital.
Legalization of Online Gambling Supported by US States
Many states in the US – including New Jersey, which is Trump Entertainment’s home base – support the legalization of online gambling. It has been estimated that about $6 billion is spent by Americans every year to wager on offshore operated gambling sites. The authorities, currently facing a significant budget deficit are likely to take the matter into consideration and plan their actions accordingly.
Ivanka Trump, the daughter of Donald Trump, commented that if the legalization proposal is passed, not only will the country’s revenue be increased, but also a lot of jobs will be created. Trump Entertainment, which recently reorganized itself from the bankruptcy it experienced last year, stated that the joint venture is a beneficial way of venturing into the field of online gambling. The associated costs are reasonable. The company also stated that there are possibilities that a few more parties may be included in the deal as investors.
Richard Bronson Speculates Investment Expenses
Establishing a gambling platform requires a large amount of capital to be invested, stated Richard Bronson, the chairperson of the California based firm, U.S. Digital Gaming Inc. The associated costs are more for marketing the site than actually creating it, according to Bronson. U.S. Digital Gaming Inc is a reputed firm which develops technology for online wagering.
Setback Faced by Online Poker Industry in Recent Past
A few months back, the online poker industry went through a difficult phase, when the Department of Justice of the country filed lawsuits against a few of the top poker rooms. Allegations were brought against Absolute Poker, Full Tilt Poker and PokerStars that the firms violated a federal stature passed in 2006. The law restricts financial institutions from offering payment solutions to gambling websites operating offshore. All three poker sites in question dominated the US gambling markets even though they operated from offshore locations.
After the legal charges were filed, two Las Vegas based casinos, MGM Resorts International and Caesars Entertainment Corp came together to fund a group called FairPlayUSA. The group works with the sole aim of promoting online poker regulation and legalization.
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