LAS VEGAS GOVERNOR KENNY GUINN APPROVES PGD'S: WIRELESS PERSONAL GAMING DEVICES IN CASINOS
Mobile gaming is coming to Las Vegas --the wireless wheeler & dealers are abuzz with this week's legislative developments that puts Nevada on way to becoming the first state to allow wireless gambling.
The news opens the way to concern within the gaming industry on whether the new wireless systems could be competition and focuses controversy on where gambling should take place in the U.S.
Wi-Fi GAMBLING LAN RUSH:
Click on JPEG to see interface for one of the games on Diamond I's handheld Wi-Fi Casino OS. Diamond I is one of three firms backing Las Vegas mobile gambling legislation.
MOBILE GAMGLING IS BIG NEWS & BIGGER BUSINESS
Even before this latest gaming news, Mobile Gambling worldwide forecasts already project an astounding $19.3 Billion in receipts worldwide by 2009 (see the Juniper Research report excerpt in this post for details). According to RED HERRING (Cached) that $20 billion is approximately 1/3 of the total mobile entertainment revenues projected worldwide for 2009.
$19.3 Billion Forecast for Mobile Gambling by 2009
Hollywood2020's blog founder Joyce Schwarz notes that a recent (March, 2005) Jupiter report notes that a rapid proliferation of mobile casinos, lotteries and sports betting services should see gross revenues from mobile gambling mushroom to more than US $19.3bn by 2009, The report reveals that lotteries will be the largest money-spinners, with gross revenues of nearly US $7.9bn worldwide by 2009, followed by sports betting (US$6.9bn) and casino-style gaming (US$4.5bn). Source: JuniperResearch.com. ______________________________
LOWDOWN ON VEGAS LEGISLATION
Las Vegas Governor Kenny Guinn signed AB471 on Weds. Note that the law is not carte blanche to wireless gambling everywhere in the state. Rather, the legislation allows gambling in public locations at resorts (that have 100 or more slot machiens and offer at least one other game) and not in hotel rooms or other private areas. Right now news sources are projecting that gambling will be via proprietary handheld devices being termed by some pundits as PGD's (personal gaming devices). How the initiative will be structured and roll-out will depend on state regulations.
MOBILE GAMING SAFEGUARDS
Next step is for regulators to make judgments on mobile gaming safeguards. The hottest topics in gaming trades and in press reports this week include: restricting the areas where it will be used, preventing minors from using it and protecting the system from hackers. The Nevada Gaming Control Board and the Nevada Gaming Commission need to draft regulations on mobile gaming before the wireless devices can be used to play in local casinos. It's estimated that it will take several months to a year for adoption of rules implementing AB471.
THREE FIRMS BACK MOBILE GAMING LEGISLATION
Latest news reports say that the bill was initiated by Cantor G&W (Nevada) LP an affiliate of Cantor Fitzgerald LP, the NY based financial services company. According to an AP article 6/2/05 LAS VEGAS SUN, Cantor says an adaptation of its interactive bond-trading technology will work for casino gambling. The legistlaton was opposed by only one of the state's 63 legislators. Also supporting the bill were two other firms who could benefit by the legislation Louisiana-based Diamond I Inc. (which has already developed its own device called Wi-Fi Casino) and Reno-based International Game Technology, the world's largest manufacturer of slot machines.
Ushering in the Video Game Generation:
In a quote in the LAS VEGAS SUN, Joe Asher, managing director of Cantor G&W says, "People have become more and more comfortable with technology....An entire generation or two have grown up with video games or mobile devices and they are in our view likely to appreciate the ability to play without being restricted to the physical onfines of the gaming area in the casino."
A Casino In the Palm Of Your Hand:
Note, wireless services are already being used in casinos in Vegas for such deployments as letting poker player's know when seats are available at tables at the new Wynn casino.
FOOD,DRINKS, GAMES PGD MULTIPLIERS
The impact of the mobile gaming devices will not be just on gambling revenues. In my 5/24/05 Hollywood 2020 post on Diamond I's Wi-Fi Casino. I note that a big multiplier to the gambling revenues is the ability to order food, drinks, show tickets and play games and other entertainment on the devices.
WIRELESS LAS VEGAS LAN RUSH IS ON:
Add to that advertising revenues or should I say, precede that by the potential for major brand sponsorships like Coke, liquor companies and yes, possibly even cigarette firms (no regulation on these closed-circuit type devices) and you see why every wheeler-dealer is heading to Vegas to strike gold in the new "Wireless LAN" rush.
For more info on the Diamond I technology see Hollywood 2020 post on 5/24/05 "Betting on New Palm Casinos" Cached NOTE, the Diamond I website was down when I tried to link to it when writing this post on Sunday afternoon.
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