Online gamblers doubled in 2005: study (Reuters)

NEW YORK (Reuters) - The number of Americans who gambledonline doubled to about 4 percent of the population last year,as people were lured by its convenience, an industry groupreport released on Monday said.

The survey was part of a broader study by the AmericanGaming Association (AGA), which also said that gambling revenueat U.S. casinos rose 5 percent last year, to a record $30.3billion, as more visitors flocked to a growing number ofcasinos in states such as Nevada.

The gaming revenue reflects strong growth from companieslike Harrah's Entertainment Inc. and MGM Mirage Inc., which areriding a surge in interest in gambling and the growingpopularity of Las Vegas and Atlantic City as touristdestinations.

"This is proof there is still room for growth," AGA ChiefExecutive Frank Fahrenkopf said on a conference call after therelease of the AGA's 2006 "State of the States" report.

The report said more Americans were also turning to theInternet to gamble as they found it convenient, despiteconfusion about the legality of online betting.

The U.S. Justice Department says a 1961 law that forbidsinterstate telephone betting also applies to the Internet, butonly 19 percent of the 552 Internet gamblers polled thought itwas illegal, according to the report.

The report said almost half the people who gambled onlinesaid they did so primarily because it was convenient, whilefewer than one in 10 said their biggest reason was the chanceto win money.

Internet gambling worldwide generated some $12 billion inrevenue last year, with about half the sales coming from U.S.residents.

The trade group, which represents casino companies andsuppliers, recently softened its opposition to Internetgambling, calling for a U.S. congressional study to evaluateits impact.

"There are some in our industry who think the technology isthere now to provide regulators the comfort that they want,"Fahrenkopf said.

CASINOS KEEP GROWING

Gambling revenue increased in 10 of the 11 U.S. states thatare home to the country's 455 commercial casinos, the reportsaid. Only Mississippi -- where the industry was badly hit lastyear by Hurricane Katrina -- saw a drop.

About a quarter of Americans who are 21 and older, onaverage, visited a casino 6.1 times last year, up from 5.9times in the previous year.

But for the first time in six years the number of Americanswho did not approve of gambling rose, with 18 percent callingit unacceptable in 2006, compared with 15 percent last year,according to a survey.

Most Americans, however, saw gambling as an importantentertainment and tourism option, the report said. Casino-goerswere also more likely to have attended college and earn morethan the average person.

The study also said poker continued to be a popular game,with nearly one in five Americans playing it last year, thesame as in 2004.

Revenue from the game increased 37 percent, to $207million, in Nevada and New Jersey. Poker was also the mostpopular game on the Internet.

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