Online gambling benefits land based casinos

Online gambling benefits land based casinos

Lillie Mcguire
Posted on April 18, 2012 at 12:04pm

Market leading website, recently announced that, according to an academic study, there could be an early indication that US laws covering online gaming could change in the near future.

The report by Kahlil Simeon Philander of the University of Nevada and Dr Ingo Fielder, the renowned expert in the 'economics of Poker' at the University of Hamburg propose that, contrary to popular opinion, online Poker actually magnifies the market share enjoyed by land-based casinos. Giving comment as to how his findings may influence current thinking by offline operators, Dr Fielder said "Our results show that offline gambling operators should not be concerned about online Poker, but instead welcome it. I am certain that this will be new information to the US Government."

The study took full advantage of the largest Online Poker Database at the University of Hamburg. Stating that from the database, they managed to track the activity of online Poker players and it revealed that even though the amount of extra revenue generated by online gambling pales in comparison to that of offline casinos, it neither increases nor decreases offline revenue.

Dominik Kofert, the CEO of, said; "The research makes me hopeful that US offline casinos will soon start to change their attitudes towards online gambling and see it as an opportunity rather than a threat." From the results, Dr Fielder says “overall, online poker and offline gaming do not compete for an identical market and cannibalise each other’s revenue. Rather, we found a small but significant positive relationship between those variables. This indicates that the markets reinforce each other and the goods are gross complements and not gross substitutes." T

his can only mean good news for players both online and offline as with each new study of this kind, it further reinforces the argument for online gambling to be liberated from the shackles imposed upon it since Black Friday. Many still wait in anticipation for a change in legislation, but until that day arrives, online and offline operators will continue to be polarised.