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| Proposed Trial run for gambling website endorsed by Las Vegas |
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10/31/2000 The city of Las Vegas may decide to enter the world of dot.com gambling
Las Vegas is seriously considering the prospect of lending its name and seal to an Internet gaming venture. If the city decides to grant the use of its logo to VegasOne.com for a proposed, Australian-based online casino, Las Vegas will receive 25 % of the company's profits. The money will be used to fund city projects. Plus, if the city serves in a regulatory capacity, it will also receive 5 % of the gross gaming revenues. Key players that pitched the idea to Las Vegas Mayor Goodman include former MGM Grand boss Larry Woolf, ex-Caesars Palace boss Dan Reichartz, one-time Nevada Gaming Control Board Chairman Phil Hannifin and internationally known gaming lawyer Tony Cabot. Last week at a City Council meeting, Mayor Goodman proposed a three-month trial run for an Internet gambling site to be endorsed by the city of Las Vegas. Goodman recently commented, "I'm the kind of mayor who wants to explore every conceivable way for the city to generate revenues so we can provide services to our constituents." Council members and some residents raised concerns that the online gaming website may harm the city's reputation if the site conducted itself in an unethical manner. City Councilman Larry Brown expressed his interest in moving forward with the plan but questioned, "Where do we draw the line between partnering with a company and overseeing it? What is our role as a government agency?" He stressed the need for more public dialogue regarding the proposed venture. The city intends to use a portion of its take to hire a regulatory body that would oversee the operation to ensure the games' integrity.
Brown stressed the financial benefit of the undertaking, saying, "If we make $1 off a hat with a logo and $1 million off Internet gaming, it's essentially the same thing." Vegasone.com executives believe revenues could be as much as US $1.2 billion in 2003, or about 20 percent of the projected $6 billion expected to be earned by Internet gambling sites in two years. U.S. players would not be permitted to wager on the site, but VegasOne.com Attorney Jim Jimmerson maintains the site will enhance international gambling tourism to Las Vegas. Jimmerson says VegasOne.com needs only a bit more credibility, namely the stamp of approval from the city of Las Vegas, to launch what it thinks will be the most visited casino in cyberspace. Jimmerson will tell the council tomorrow whether his client's will agree to the proposed trial period. However, the City Council still have to vote to determine whether the city's seal could be placed on the site.
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