Report: Internet gamblers can afford it

CARSON CITY, Nevada (AP) -- A gambling industry survey shows that people who use the Internet to place their bets tend to be affluent and educated -- a finding that could help advocates of a federal law change to legalize such wagering.

Release of the American Gaming Association survey on Monday follows the Washington, D-C.-based casino trade group's recent call for a congressional study of Internet gambling now that other countries, including Great Britain, are moving to authorize online betting.

Frank Fahrenkopf Jr., AGA president, said the group has opposed legalization of Internet gambling in the past "because regulators were opposed to it, and we're the strongest supporters of tough regulation."

"But the technology has changed greatly, and now Great Britain is legalizing online gambling -- and we're saying that Congress ought to take a look at (online gambling)," Fahrenkopf said.

"A lot of the opponents have been saying that the people who gamble on the Internet are the ones who can least afford it," he added. "But look at this survey. It shows they tend to be more educated and have more money than other people."

The survey of 552 Internet gamblers, conducted by Peter D. Hart Research Associates Inc., showed 41 percent had incomes of more than $75,000 a year, while only 12 percent had incomes of less than $35,000.

More than two-thirds of the online gamblers were men, more than two thirds were under age 40, most had started such gambling only in the last two years, 61 percent had at least a college degree and nearly half of those responding said the biggest reason for Internet betting was convenience.

The survey also said 55 percent believe online gambling companies find ways to cheat, and fewer than one in five knew or would admit that online gambling currently is illegal in the United States.

On other subjects, the survey showed:


The 455 commercial casinos in 11 states generated $30.29 billion in gross gambling revenue last year, for an increase of nearly 5 percent over the preceding year.


Las Vegas revenues surpassed $6 billion and Atlantic City revenues surpassed $5 billion for the first time.


A poker boom that started in 2004 is still going strong, with nearly one in five of those surveyed saying they played poker last year.


The gambling industry employed more than 354,000 people and paid wages of more than $12.6 billion last year. The industry also paid $4.92 billion in taxes and fees to state and local governments.

Those who responded to the March 18-21 survey were screened to ensure they were 21 or older and had made an Internet bet within the past year.

Because it's what's known as a "convenience sample" of a specific group, there's no reported error margin as there would be in a random survey of the general public.

Copyright 2006 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.

News Added: 09 May, 2006

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