Problem:
If, as signs point to, online gambling becomes (mostly) legal, there’s not enough expertise to go around. Lack of experience and knowledge one problem of many.
Business
An online gambling consultancy. Offer advice to the companies who will try to get into this space. Many companies will enter this market. A few will succeed spectacularly, many will fail. But those who sell the picks, shovels, and denim jeans will be sure to benefit from the coming gold rush.
I know that a number of the brick and mortar players have been putting together the necessary expertise for 2-3 years. However, there truly not enough expertise to go around.
Doableness
You need to put together a team of people who have the necessary knowledge and skills. You must have the following expertise: software, payment processing, legal and regulatory, tax, audit, online identity verification, online marketing, government contracting, physical to virtual customer transition, etc.
It is not necessary to have all members as full-time employees or partners of one company. But the team should avoid conflicts of interest.
My Thoughts
Online gambling is coming. Politicians always do what is easiest, and the easiest revenue source will soon be recognized as online gambling. Once it is no longer an election year, the decisions will be made and the laws will move forward.
I am not referring to in-state online gambling – I mean gaming regulated at the federal level. Both the feds and the states will be paid their share.
Companies from Facebook to Harrahs, Zynga to Microsoft have likely explored the online gambling space. It would be irresponsible to shareholders not to. Online gambling is not the core competency of these companies or hardly any others for that matter. Online gambling is not the core competency of the vast majority of gambling companies. Those who enter the market need the expertise.
BWIN Party, a leader in worldwide online gambling, shares have moved up over 30% since December, as the DOJ began to clear the way for online gambling. The shares are traded in London.
Online gambling will always be near and dear to my heart, as it was a business I was once in – on the periphery. It is a business that can and should exist. But it needs to be done right from all angles.
…I hope everyone enjoyed their President’s day yesterday.