Thursday, October 08, 2015 05:59pm
North Adams, MA now: 61 °   
Send news, tips, press releases and questions to
The Berkshires online guide to events, news and Berkshire County community information.

Home About Archives RSS Feed
The Independent Investor: Gambling Could Be Your Next Download Application
By Bill Schmick On: 05:06PM / Thursday April 04, 2013

Last month, the New Jersey legislature passed a bill allowing regulated online gambling within their state. Nevada already has such a network in place as do several other states. Many state capitals across the nation are also debating the same type of legislation. There is a real possibility that someday soon you may be able to play the roulette wheel from your living room couch.

Depending on how quickly the right to gamble via the Internet occurs, people will be able to bet on casino games from their mobile phones, laptops and other Internet hardware. That has created some concern among those who believe gambling is an addiction. However, state legislatures appear to be ignoring those issues as they forge ahead with plans to legalize this form of gambling. And given the numbers it involves, it is easy to understand why.

Globally, online gambling is worth $30 billion and is expanding at a 2-3 percent rate annually. It is estimated that 51 percent of the world's population partakes in some form of gambling.  At the same time, by the end of 2013, 39 percent of the world's population will have access to the internet. That represents 2.7 billion people.

Both vendors and state tax officials are eyeing Europe as a model for potential U.S. expansion. Europe experienced a 45 percent increase in a total online gambling yield last year largely because Europe has the highest penetration of internet access (75 percent of the population) in the world. More and more officials realize that when you combine the public's desire to gamble along with the growth and penetration of the internet the numbers become staggering.

So as the Internet expands, so do the opportunities to offer several forms of wagering, casino betting and poker. To date, Southeast Asia has been the main driver of growth, followed by Europe. America comes in a poor third, but thanks to the Federal government things are changing here.

The 2011 decision by federal courts that online gambling was not illegal gave new life and impetus to advocates of online betting nationwide. To date, seven states have moved to enact legislation. So far the plans only include casino betting but the real jackpot would be legalized sports betting over the internet.

New Jersey voters approved a ballot initiative for sports betting back in 2009 and Governor Christy signed sports betting into law, but the federal government sued to block it. The case is now being heard before the courts. No matter who wins, the case is expected to go all the way to the Supreme Court before a verdict is final. If the courts decide in favor of sports betting, a boatload of states is expected to push for passage among their own citizenship.

Opponents are afraid the proliferation of sports betting will breed corruption, addiction and tarnish the image of sports figures throughout the sports world. Advocates maintain these arguments are hypocritical at best, pointing to the fact that Americans gamble in casinos, racetracks, off-track betting parlors, and even lotto and other state lotteries but neither crime nor corruption has resulted from these endeavors.

Behind this new development are those old most popular of motivators: fear and greed. A generation ago, Atlantic City, New Jersey, was the only game in town for east coast gamblers. The boardwalk properties generated enormous tax revenues, tourism and profits for the casino owners and the state.

Over the last 20 years, however, there has been an explosion of state-sponsored casinos cutting in on the action. The tax revenues generated by New Jersey and the windfall profits of the Indian Reservations of Connecticut, coupled with inflows of new tourist money was simply too lucrative to resist.

In the case of New Jersey, all this new competition has reduced the "take" on the boardwalk, driving down profitability and state tax receipts as well. Officials fear it will only get worse as new states like Maryland and Massachusetts grant licenses. Internet gambling is a way of turning that situation around.

I suspect it will give a boost to revenues for both the gambling industry and state governments in the short term. However, like the experience of New Jersey casinos, I'm sure internet gambling will reduce both attendance and profits at existing gambling hubs such as racetracks, off-track betting parlors and the like. In the end, we may simply see a shift away from physical betting to internet betting without much of a change in the dollar value of the betting.

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at

News Headlines
SABIC to Leave Pittsfield; Putting 300 Out of Work
Cheshire Fire Department Treasurer Accused of Larceny
Pittsfield Housing Authority: Worcester's Program Not A Fit Here
Lanesborough FinCom Continues Discussion On School Funding
North Adams Fire Department Opens Doors To Public
Clarksburg Voters to Decide School Feasibility Funding
Pittsfield Approves Renaming Pitt Park For Reverand Durant
Heating Leak Causes Thursday Closure at Williamstown Elementary
North Adams Happenings: Oct. 7-13
Girl's Walk to Cure Diabetes Team Holding Painting Party Fundraiser

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Visit for more of Bill’s insights.




@theMarket (182)
Independent Investor (248)
October 2015 (3)
October 2014 (7)
September 2015 (7)
August 2015 (7)
July 2015 (6)
June 2015 (8)
May 2015 (6)
April 2015 (8)
March 2015 (6)
February 2015 (7)
January 2015 (9)
December 2014 (7)
November 2014 (4)
Fiscal Cliff Retirement Europe Bailout Commodities Economy Stocks Congress Fed Debt Ceiling Selloff Markets Euro Deficit Stimulus Oil Stock Market Debt Federal Reserve Currency Housing Recession Crisis Banks Europe Taxes Jobs Election Metals Interest Rates Japan Greece Pullback Rally Energy
Popular Entries:
The Independent Investor: Don't Fight the Fed
The Independent Investor: Understanding the Foreclosure Scandal
@theMarket: QE II Supports the Markets
The Independent Investor: Does Cash Mean Currencies?
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Will the Municipal Bond Massacre Continue?
The Independent Investor: Why Are Interest Rates Rising?
The Independent Investor: How Will Wall Street II Play on Main Street?
Recent Entries:
Independent Investor: Millennials The Misunderstood Generation
@theMarket: October Should Be the Bottom
The Independent Investor: The Stock Market & You
The Independent Investor: How Cell Phones Hurt Your Productivity
@theMarket: Back to the Future
The Independent Investor: Mind the Gap, Please
@theMarket: All or Nothing
The Independent Investor: The Economics of European Migration
@theMarket: U.S. Jobs Data Sink Markets
The Independent Investor: Senior Housing Set to Soar

Girls X Country: at Wahconah
The Lenox girls dominated their race with the top four...
Boys X Country: at Wahconah
Drury junior Connor Meehan ran a time of 16 minutes, 25...
Girls Volleyball: Lee at...
The Lee volleyball team won its 12th straight match...
B Soccer: Mount Everett at...
On Tuesday, the Crusaders played Mount Everett to a 1-1...
B Soccer: Mount Greylock at...
Naka O'Connor scored twice, and Sam Dils had a goal and an...
B Soccer: Putnam at McCann...
The McCann Tech boys soccer team earned a 1-1 tie Monday...
2015 Berktoberfest
The eighth annual Berktoberfest was held in Pittsfield.
Fall Foliage Parade 2015
The 60th annual Fall Foliage Parade stepped off Sunday...
Fall Foliage Road Race 2015
The annual Fall Foliage 5K takes off from Monument Square...
Football: Pathfinder at...
FINAL: McCann Tech wins 20-0 over Pathfinder Saturday...
Football: Hoosac Valley at...
The Hoosac Valley football team looked to their third...
Football: Wahconah at...
Wahconah beat Monument Mountain 57-12 Friday night.
Football: Taconic at Lee
Taconic to third straight win, 50-13 over Lee to improve to...
Fall Foliage Dog Parade 2015
The 6th annual Fall Foliage Dog Parade brought out a host...
Fall Foliage Children's...
The annual Children's Parade on Friday night celebrated...
G Soccer: Pittsfield at...
Julia Eline Wright scored in the 68th minute to give the...
Girls X Country: at Wahconah
The Lenox girls dominated their race with the top four...
Boys X Country: at Wahconah
Drury junior Connor Meehan ran a time of 16 minutes, 25...
Girls Volleyball: Lee at...
The Lee volleyball team won its 12th straight match...
B Soccer: Mount Everett at...
On Tuesday, the Crusaders played Mount Everett to a 1-1...
B Soccer: Mount Greylock at...
Naka O'Connor scored twice, and Sam Dils had a goal and an...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings |
Advertise | Recommend This Page | Help Contact Us is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2012 Boxcar Media LLC - All rights reserved

Privacy Policy| User Agreement