People connected to the Internet gaming industry raised more than a few eyebrows upon the announcement this past weekend that a former CEO of a large online gambling establishment has taken a position with a prestigious casino gambling conglomerate.  Gary Loveman, Harrah’s Entertainment CEO, announced that former Party Gaming CEO, Mitch Garber, will be taking a position with Harrah’s as Head of Internet Operations, as well as the World Series of Poker division.  

Many people close to the industry are speculating on this appointment because the timing of it lends itself to such speculation.  Congressman Barney Frank (D-MA) is in the midst of submitting legislation that would repeal the UIGEA Act which made gambling on the Internet illegal for citizens.  It is believed that Loveman’s actions, coming on the heels of a Democratic Party sweep in November, 2008, and the upcoming Frank legislation, acknowledge that the prospects for a return of online casino gambling to the United States is looking like a strong possibility.

Harrah’s is suffering from a shortage of business as are all the other land based casinos.  For the month of March, 2009, the Trump Plaza in Atlantic City experienced a decline of almost 30% as compared to the same period of time in 2008, and the other casinos have fared no better.  It should be noted that online casino gambling has experienced a huge growth spurt during March, 2009, and it is anticipated that the online casino gambling industry will grow another 15% by year’s end.

Harrah’s has put itself in position to become the first land-based casino to join the ranks of the online casino gambling industry.  Harrah’s entrance into the online casino gambling industry would certainly change the face of Internet gambling as presently comprised, and it would pave the way for other land-based casino giants to make a similar entry. 

Back in 2001, the MGM Mirage attempted to set up an online casino gambling operation powered by Wagerworks.  However, the legal situation in the hampered its activities and it shut down its Internet operations in 2003.  However, the MGM Mirage proved to be an effective model, one which casinos such as Harrah’s will take to the next level, once the U.S. anti-gambling laws are repealed, and millions of Americans find cause to celebrate.