One of the big-name players in online gambling
is leaving the table.
MGM's Mirage gaming unit is discontinuing operations
of its online casino, PLAYMGMMIRAGE.com, on June 30.
"Unfortunately,
even in light of a successful working model, the legal
and political climate in the U.S. and several countries
around the world remains unclear. The fact is that millions
of U.S. citizens currently participate in online gaming
in an unregulated environment. We believe that a more
sound and realistic public policy would be to regulate
the activity and hold operators to the highest standards
of probity and integrity," says Terry Lanni, chairman
and CEO of MGM Mirage.
He says the MGM effort
was successful in showing that a regulatory model
works, emulating state-regulated brick-and-mortar
casinos.
"We were successful in demonstrating a working
model that provided the proper checks for jurisdictional
control, age verification and the necessary security
and responsible gaming measures required to function
in a regulated market," Mr. Lanni says.
"In the meantime, millions of U.S. citizens who
are currently playing casino games online every day
must continue to do so without the protections provided
by common sense regulations that we believe should
be implemented. The day will clearly arrive when this
activity will be legalized and regulated and we will
participate fully at that time," Mr. Lanni says.
As a result of the announcement, the company will
record a loss from discontinued operations of approximately
$5 million, net of tax, in the second quarter related
primarily to unrecoverable costs of software and hardware
utilized in the operation, second quarter operating
losses and tax benefits and prior period operating
losses.
MGM Mirage Online is based in the Isle of Man, an
internally self-governing dependency of the British
Crown.
Good
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