Although the US (which has the largest population of online gamblers) has passed the Unlawful Internet Gambling Enforcement Act, the multibillion dollar industry is bouncing back.
The collapse of the sector after the passage of the UIGEA has provided both the opportunity for consolidation- i.e., ridiculously low stock valuations relative to the cash generated by the sector- as well as the impetus to get big enough to weather any adverse legal developments in jurisdictions such as Germany, France or South Africa where internet gaming remains controversial.
It’s easy to imagine the online gaming sector going through same growing pains that beset the search portal industry in the late ‘90’s- too many competitors in a field likely to be dominated in the long term by a few major brands
Another response to the knee jerk reaction against online gaming by American authorities has been the development of poker currency exchanges to facilitate wildly popular online poker tournaments.
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