offshore gambling

As Bay Staters plunk down their cash on today's Kentucky Derby, millions will be flowing offshore to unregulated online casinos that lure gamblers away from the state's racetracks with plum rebates.

"We've got one arm tied behind our back and both legs shackled," Raynham-Taunton Greyhound Park owner George Carney said of the impact online gambling has had on his business. "It shouldn't be legal. It should be regulated."

What happens about offshore gambling ?

Lobbyists for the state's racetracks have been pushing unsuccessfully for slot machines for years but Bay Staters need only turn on their computer to bet - legally - on slots, poker, craps, blackjack, sports or any other game of chance. Besides the convenience, many of the online casinos offer 10 to 15 percent cash rebates on all bets. Gambling watchdogs estimate that as much as $10 billion will be bet online this year nationwide - all of which is tax free (offshore gambling)

Federal courts have suggested that Internet gaming may be illegal under wire transfer laws, but offshore casinos continue to explode unchecked, taking bets from anyone with a credit card or checking account. There is no state law banning online gambling and a spokeswoman for Attorney General Tom Reilly said the issue remains a gray area of offshore gambling.

"It's running rampant right now and it's hurting us," said state Rep. David Flynn (D-Bridgewater), who said he plans to seek an outright ban on online betting in the Bay State. "I think we've been very lax as far as protecting this industry that employs more than 6,000 people. We're really promoting the death knell for racing and that's sad."

In addition to online competition, racetracks now face added pressure from satellite TV which allows gamblers to set up wagering accounts and legally bet live racing from their couch. And while TV and online gaming allows unlimited betting on tracks worldwide - including today's Kentucky Derby - the state limits off-track betting at Bay State tracks.

"They're actually bookies, there's no regulation and they're killing the (racing) industry which is so regulated," said Raynham- Taunton assistant manager Gary Temple.

Rep. Daniel Bosley (D-N. Adams) said simulcasting limits likely won't be lifted because some tracks would suffer from the increased in-state competition. As for online gaming, Bosley said a recent federal ruling that allowed a crackdown on cyber betting parlors in Antigua and Barbados could lead to better regulation.