2009-05-10 06:52:10
Increased Competition in the Online Poker Industry Would Translate Into Increased Bonuses
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In case you haven't already heard, US Representative Barney Frank recently re-introduced legislation that would regulate online gambling in the United States.
This legislation, if approved, would license online poker and casino operators in the United States. The UIGEA would be rescinded for those rooms that are licensed, and there would presumably be no restrictions in terms of Americans funding their online poker accounts. In addition, one can only assume that it would be legal for licensed poker rooms to advertise freely to citizens of the United States.
One of the questions that you might have is: how would this legislation affect bonus offers? Would it increase or decrease the size of bonuses that are offered by online poker rooms.
Now, this is just a best guess, as I can't see into the future. However, it is hard to imagine that this bill would do anything but increase the size of the bonuses that are offered to new customers at online poker rooms.
The reason? Increased competition. With no legal issues, there would presumably be many more companies interested in opening an online poker room that takes US players. I mean, let's be real - the online poker industry is phenomenally profitable, and there would be no shortage of companies that would seek to enter the industry.
Publicly traded companies are not able to accept US players because of the regulatory issues involved.
If there was regulation of the industry in the United States, then companies such as Party Poker and the iPoker network would seek licenses and presumably market to US players very aggressively. One of the easiest way to lure new players is to offer outrageous sign-up and reload bonuses.
Next up, you would have brick and mortar casinos looking to enter the industry as well. Harrah's recently hired Mitch Garber (former CEO of PartyGaming) and has publicly backed Frank's legislation, so you can safely assume that they would be interested in opening an online poker room. It is probably safe to say that other casinos would want in on the action as well.
Online poker rooms who currently target the US market (FTP, Pokerstars) would undoubtedly have to increase the size of their bonuses in order to entice new players. The competition for new customers would be ratcheted higher with new (and well-funded) companies entering the market.
I would expect two things if Barney Frank's legislation is passed:
1. Increasingly aggressive sign-up bonuses.
2. More reload bonuses, as existing online poker rooms struggle to retain their client base.
Increased competition in the industry brings nothing but positives for the average customer, whether they are American or not. Pro-online gambling legislation in the United States would be good news for everyone.
Filed under: General Poker Bonus Code Info
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