Gamblers may look over their shoulder now, but experts say a new Internet gambling ban won't keep bettors from ponying up, just turn them on to overseas payment services out of the law's reach.

"It has put a terrible scare into people," said I. Nelson Rose, who teaches gambling law at Whittier Law School. "But it won't by any means wipe out Internet gambling."

The fright swept through the $12 billion industry on the heels of the recent arrests of two gambling company executives and a new law President Bush signed Oct. 13 that seeks to ban most online gambling and criminalizes funds transfers.

The law has wiped out billions of dollars in shareholder value of British companies, leaving the industry's future in doubt as U.S. lawmakers initially trumpeted they had found a way to halt bets coming from America. But serious questions remain about whether the legislation can be effective in stopping U.S. residents from playing poker or betting on sports.

The "Unlawful Internet Gambling Enforcement Act" goes after the money, not the millions of players, which would be nearly impossible to enforce. It will essentially try to choke off the way Americans fund their gambling habits, hoping to prevent the transfer of dollars to the popular Internet sites.

It's also widely understood that the law has online poker in its gun sights, identifying it as a game of chance - something the poker companies dispute. They believe poker is a game of skill and therefore not subject to the new rules.

The gambling outfit Cassava, also known as 888.com, are to fire employees in their Gibraltar headquarters. That was the buzz yesterday as employees started to receive redundancy letters, with some sources suggesting that up to 150 may be dismissed.

The layoffs stem from the cessation of the company's activity in the US due to new legislation banning online gambling in the USA, which has shaken the industry.

The forced abandonment of the US market by online gambling companies is hitting their workforces. As we reported on Monday, another Gibraltar-based company, PartyGaming, are talking of job losses in Gibraltar as costs are cut.

888 Holding plc describe themselves as 'the world's No.1 online casino operator and poker room'. They have dismissed 29 employees in an Israeli company, representing about 7% of its workforce there.

888 Holding is also expected to pare down its 150-person workforce in Antigua, most of them call centre and technical support staff, said reports.

DOWNSIZING

A report added: At the company's headquarters in Gibraltar, a process of downsizing has also begun, however because of labour laws in Gibraltar which mandate a 60-day advance notice of dismissal, the company has not yet decided the final number of employees to be laid off.

The latest figures made public last May put their Gibraltar workforce at 381. 888 is quoted as saying that "In light of the change in legislation in the US and the cessation of the company's activity in that country, and after reviewing current expenses, 888 is making general structural and workforce changes. Part of the workforce which worked directly with the US market was integrated into international departments."

Their website says: The 888 Group is headquartered in Gibraltar and owns Cassava Enterprises (Gibraltar) Limited, the company that operates 888.com. Cassava Enterprises operates under a licence granted by the Government of Gibraltar.

In September 2005, the Group's holding company 888 Holdings PLC completed a successful initial public offering of its shares, which were admitted to trading on the London Stock Exchange. The flotation was an important step in 888.com's goal of becoming the market leader in the global online gaming entertainment industry.

PANORAMA contacted Cassava in Gibraltar and in the UK. The company spokesman did not deny that redundancies were being made, but promised to get back, which so far they have not.

Fallout from legislation targeting Internet gambling has landed in Ventura County. Camarillo-based Electronic Clearing House Inc., or ECHO, announced that its annual report for the fiscal year ended Sept. 30 would look different after the Unlawful Internet Gambling Enforcement Act of 2006 was signed by President George W. Bush Oct. 13. The law prevents companies from accepting payments for Internet gambling and requires financial institutions and payment processors to stop any payments that could be used for Internet gambling.

“We’ve always known that it was possible that our Congress would try to legislate morality,” ECHO Chairman and Chief Executive Officer Joel M. Barry said.

ECHO processes debit and credit card transactions and clears checks for clients throughout the United States. It has been caught on the fringes of the high-tech dragnet because it also processes fund transfers for a popular internet technology that is sometimes used to pay for Internet gambling.

Many ECHO customers offer a product known as an “Internet wallet.” Similar to the service offered by eBay-owned PayPal, these wallets allow users to deposit money into online accounts to be used at the user’s convenience to buy products, pay for services, or place a few bets on the pass line of a virtual craps felt. PayPal was the most popular such service for online gaming until it was purchased by eBay, which pulled it out of the industry.

The new legislation does not prohibit Internet wallets. Instead, it requires their providers and companies like ECHO to block transactions connected to illegal online gaming. Although the law took effect upon its signing, it could be up to 270 days until federal agencies adopt guidelines for enforcing the law.

ECHO Chairman and CEO Barry said that although his company will be able to work around the new regulations, they were developed for purely political reasons. Notably absent from the legislation were proscriptions of wagers on horseracing and state-sponsored lotteries.

"The industry itself had had an active lobbying effort and had been assured that this would not happen,” Barry said. “It kind of undermines the logic of the congress to leave online horse racing alone. I think it was more of a political year calculation than a serious effort, but it’s going to have a lot of impact."

Betcorp Limited (BCL) today announced it had entered into an agreement to sell its gaming operations and operating infrastructure in Antigua and Toronto for US$9 million to Bodog Entertainment Group SA. The move came as a result of the passing of the US Unlawful Internet Gambling Enforcement Act on 13 October 2006.

The legislation effectively makes it illegal for US banks to make or take payments from online gambling sites. CEO Colin Walker said that the firm was pleased that they had secured the sale of their operating subsidiaries.

"In very difficult circumstances we have achieved a satisfactory outcome for shareholders and have been able to safeguard the interests of our customers and employees", he added.

The firm said that the consideration payable to Betcorp in respect of the disposal comprises a maximum cash consideration of US$9 million payable in five installments.

With US$3 million to be paid on completion and the balance of US$6 million in four equal quarterly installments during the 12 months following completion.

In response to the Unlawful Internet Gambling Enforcement Act, Atlantic West Gaming had this to say:

Atlantic West Gaming Entertainment Ltd. Is operating only one gaming site for "real money" at the moment, and all of our other sites are being converted to "play for fun only", and will be re-directed to our new site shortly.

This site is: www.bookyourbet.com, and is the only site that we wish to promote for the moment.

Book your Bet is a full service site that contains Casino Games, a Virtual Sports Book, and within the next 90 days, Multi-Player Poker.

We are accepting U.S. players, and plan to continue to do so.

We allow play for real money activities to players in all but the following states that have valid regulations prohibiting internet gaming; IL, IN, LA, MI, NV, OR, SD, and WA. Players in these stats can only "play for fun".

Because we utilize a unique transaction processing system, we don't believe that we will be affected in any way by the recent U.S. legislation.

We require our players to effectively open up their own "foreign bank account" (this is done automatically when they sign up, and requires the player to provide all of the documentation required for a bank account, before they can actually use it), and while there are many ways that the player can fund that account, the actual money residing in that account is not in USD, but rather in EC$ or Euro$.

When a player funds their gaming account, they first must transfer money from their "foreign bank account" to their Antiguan gaming account.

Since no U.S. banks or U.S. money is actually involved in the transaction to the gaming account, we believe that the new U.S. regulation will have no affect on us.

The federal government can't make rules for the ways Las Vegas-style games are played at Indian casinos, an appeals court ruled Friday in a blow to efforts to regulate the booming, $22 billion tribal gambling industry.

The decision by a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit arises from a dispute in Arizona between the Colorado River Indian Tribes and the National Indian Gaming Commission, the federal agency that oversees Indian casinos.

The commission tried in 2001 to audit the tribe's casino in Parker, Ariz., to ensure compliance with recently enacted federal standards for how games like blackjack and slot machines are run. The tribe objected, contending the commission was overstepping its authority under the National Indian Gaming Regulatory Act.

A federal district court sided with the tribe, and the appeals court agreed in an 11-page ruling. While federal law gives the gaming commission some authority over games like lotto and bingo on Indian land, the big moneymakers like blackjack and slots classified as "Class III" games are outside the commission's jurisdiction, said the ruling written by Judge A. Raymond Randolph.

"What is the statutory basis empowering the commission to regulate Class III gaming operations?" the ruling asked. "Finding none, we affirm" the lower court's decision.

Tribes can open Las Vegas-style casinos only after they sign a "compact" with their state's governor, and the court asserted there was no federal role in regulating the game-playing.

Tribal gambling has grown explosively since Congress established the legal framework for it in 1988, and there are now more than 400 Indian gambling facilities operated by 223 Indian tribes in 28 states.

With the growth have come conflicts as tribes have asserted their sovereignty as independent governments. Local and state governments have sought to sketch out some authority, and the federal government increasingly has attempted to regulate aspects of Indian gambling from labor to slot machine standards.

The National Indian Gaming Association welcomed the ruling as a victory for tribal sovereignty.

"Today, the federal court of appeals told us what Indian tribes always knew it is not the NIGCs job to establish federal regulations that override the sovereign decisions of tribes and states made through Class III gaming compacts," the association's chairman, Ernest Stevens, Jr., said in a statement.

Officials with the National Indian Gaming Commission did not immediately return calls seeking comment.

Alderney, the British Channel Island just off the coast of France, is pleased to announce that following an update to their online gaming framework, more online casinos and gaming sites are continuing to choose the Alderney Gaming Commission for their regulatory body of choice. In the last two months alone, Alderney has granted six more licenses, bringing the total number of online casino licensees to twenty-five. In October alone, Alderney has already issued four licenses to WagerWorks and Asia Pacific Gaming, while last month licenses went to William Hill and SportingBet.

And with monumental changes taking place in the U.S. online gambling landscape, Alderney is hoping to attract an even larger number of gaming operators in the coming months. The head of eCommerce Development in Alderney, Robin Le Prevost, said he is very confident in the new regulatory package, which incidentally harmonizes well with the online gaming regulations being adopted in the UK and promulgated by the eCommerce Online Gaming Regulation and Assurance (eCOGRA). Prevost also said it is inevitable that more online casino operators will turn to Alderney as they withdraw from the increasingly hostile U.S. market.

Prior to rewriting their regulations, Alderney was not as successful at attracting gaming companies as other jurisdictions like Kahnawake and Antigua and Barbuda were. However, seeing the need to update their outdated policies, Alderney constructed a major rewrite, amounting to a new interest from overseas gambling companies. And while Antigua chooses to do battle with the U.S. in the midst of the World Trade Organization (which now is more about principle than business), Alderney is bidding for online casinos to focus their operations on an expanding European and Asian online gambling market.

Now, Alderney must prepare to compete with other notable gaming jurisdictions like the UK, Gibraltar, Isle of Man and Mohawk territory of Kahnawake in offering a stringent, yet operator-friendly gaming license. With tight regulation protocols in place, Alderney believes their most tempting offer (as far as online casinos are concerned) are their taxation laws and licensing incentive deals. Considering the current rate at which operators are applying for licenses, these sentiments cannot be dismissed.

Despite the outstanding current performance numbers from Party Gaming (third-quarter revenue grew by six percent to $337.2 million) this week, analysts have noted that these gains were made pre-the Unlawful Internet Gambling Enforcement Act which has devastated the online gambling operator landscape by announcing restrictions on US cash flows to Internet gaming sites.

PartyGaming's investment bank expects the company's revenues to drop by more than $1 billion next year as a result of the industry giant's decision to pull out of the U.S. market in obedience to the new law.

Dresdner Kleinwort downgraded 2007 revenue projections from $1.513 billion to $450 million in financial reports released Friday. The bank also reduced 2006 revenue forecasts from $1.344 billion to $1.134 billion.

The company will also suffer a one-time restructuring charge of $250 million in 2006 as a result of leaving the U.S. market.

"The impact of the recently passed legislation in the U.S. has changed the shape of our business fundamentally," said PartyGaming's CEO Mitch Garber.

The company logged 1 024 204 active players during the third quarter. But 824 556 of those players were based in the U.S. and are now cut off from the company.

Its non-U.S. business has been surging lately, with overall group revenue growing by 21 percent to $92 million in the quarter. But since shutting Americans out from its real money sites one week ago, average daily gross revenue for the non-U.S. facing business has been 2 percent below the third quarter average.

PartyGaming has removed tickers from its PartyPoker network that show the number of active players and tables. A PartyGaming spokesperson told the Guardian this was done so that rivals like PokerStars could not use the reduced numbers against it.

"In the very near term, PokerStars can be an issue," Garber told a conference call. "But the playing field is going to become much more level. Most of the banks and processors are set to leave the industry."

The company stresses that it remains well-positioned to succeed in global endeavors. "We continue to grow what is already a substantial business outside of the United States," said Garber to the conference call. "PartyGaming is very much open for business for customers around the world. We do have the world's largest non-U.S. poker site by a large margin."

One of the things you really need to think about when looking up online casino news is the veracity of the news that is placed on an online casino website. It has been rare, but still has happened, when certain online casino websites will make up news in order to try and seem important. This has caused problems for other online casino websites which often share news with visitors, because the online casino sites reporting the news that might appear on other websites are often unknowingly helping dishonest online casino news sites spread a fib.

Of course, pranks often happen on news websites, but more frequently on satire websites and not real news websites. The few times when real news organizations have been found out to employ news reporters who pull whatever it is they are reporting from their imagination while portraying it as fact, a scandal has followed of the sort that usually doesn't reflect well on the journalism industry as a whole. This is true with "real" news, and it is true with online casino news.

If you see something questionable on an online casino news website, do the smart thing and check out other online casino news source websites to see if the story also appears there. Seeing the same story twice, on websites of an equal par in the online casino industry, should give you that reassurance you need to know the story is legit. And if it isn't, you shouldn't hesitate to bring up the matter with the online casino website itself or with those who are reporting a story they might not know is false.

Antigua is readying its case against the U.S. in a World Trade dispute that will get a final ruling by January or February of next year. Stemming from a U.S. imposed ban on online casinos regulated in Antigua, the dispute has now been further compounded by the recent actions of the U.S. to ban online gambling on a Federal level. Following submissions next week by third parties supporting Antigua's case, which include several powerhouse nations from the European Union, as well as China and Japan, the U.S. submission is expected to receive a rebuttal by Antigua, which in turn, would likely receive a rebuttal from the U.S.

Antigua recently held several consultations with delegates from other nations who apparently are backing Antigua all the way. Dr. Errol Cort, who is the Minister of Finance and the Economy in Antigua, has been at the helm of these consultations, which he says have been opportune moments to address their case against the U.S. Regardless of the recent legislation signed into law by President Bush, much of Antigua's case pertains to what the OECS Technical Mission says is a "systemic issue...going to the raison d'etre of the WTO's existence." In other words, if the U.S. is allowed to get away with their blatant disregard of a ruling by the WTO's Dispute Settlement Body, smaller countries would have no economic protection whatsoever under the dominion of the World Trade Organization.

The U.S., however, claims they are in compliance with the ruling of the dispute panel. Antigua's legal adviser, Mark Mendel begs to differ. He says the U.S. ignored these rulings, and then proceeded to claim they needed more time to implement the recommendations by the WTO, which they did not even attempt to do. They dragged out the case as long as could (for nearly a year) and then arbitrarily announced they were in compliance with the WTO regulations to begin with.

Online casino gambling accounts for a large portion of revenue sustaining Antigua's economy. Many other smaller countries - primarily in the Caribbean - likewise depend on business exchanges with the U.S. Many fear that if the U.S is allowed to go unchecked by the rulings of the WTO, smaller countries like Jamaica, Brazil, Barbados and Trinidad and Tobago (whom Antigua also recently met with to gain support), may very well be at the mercy of a U.S. government that does whatever it pleases - even if that means negatively impacting the economy of a struggling country.

Responding to approval of the Unlawful Internet Gambling Enforcement Act, Intercontinental Online Gaming has announced that it is to join the plethora of companies who are no longer accepting players located in the United States.

In a statement to its marketing affiliates, the company stated, "Due to the recent enactment of the Federal 'Unlawful Internet Gambling Enforcement Act' in the United States Senate on September 30, 2006, IOG Casinos are sad to announce that effective from today, Friday 13 October, we will no longer be able to accept any new US based players, and that those US players already enjoying our services will no longer be able to wager and deposit at any of our clients."

IOG casinos is now concentrating its business on the non-US English speaking arena and mainland Europe, having already translated many of its sites into French, Spanish, German, Swedish and Russian as well as Chinese and Japanese.

The statement continued, "With the possibility of legislation in the US hanging over our heads for many years, IOG Casinos foresaw possible issues arising from this and are already a market leader in the non-US arena."

There are probably many British online casino enthusiasts who are extremely pleased with the United States right now. You might think that politics has nothing to do with it, but in fact their happiness with the U.S. might have everything to do with it. You see, in banning online casino gambling in the U.S., the Congress and President have in effect put the majority of the pressure on the government of the major English-speaking country that doesn't look at online casino gambling as a crime.

This is not to say that Her Majesty's Government looks as favorably upon online gambling as it does on, say, cricket or soccer. Even so, and with the restrictions in place on online casino firms in the U.K., the chances that a firmly legal online casinos regime in Britain coming about, and then one day possibly being emulated by Washington, have grown more than anyone might have ever thought possible. All of the people who thought that online casino companies had to seek legitimacy in the United States first might have been working backward.

And so, the U.S. may very well have saved the online casino industry instead of killing it. Washington has basically washed its hands of setting up regulations that it might find favorable, so that legislators and officials can focus on matters of higher importance. When and if another country with which America shares a close partnership creates a viable online casino regulatory system that America can live with, you'll probably see online casino companies enter the U.S. again.

Howard Kerzner, the entrepreneur who passed away together with 3 other people in the helicopter crash on the 11th of this month, was a "visionary investor of grand proportions."

Information published in the newspaper The Miami Herald’s businesses section states that his company Atlantis Resort on Paradise Island would develop its new projectd in Dubai, on 120 acres of land on the famous palm-shaped island.

It indicates that in addition to Atlantis, the company Kerzner International owns a large amount of hotels around the world. "He was a great visionary," said the tycoon Donald Trump, who also regarded Kerzner as his friend.

"He was also one of the few children who could compare in terms of talent to his father (Sol Kerzner) and that is seen a lot in the businesses," he said.

At the time of his death, Kerzner was developing a US$650 million casino in the United Arab Emirates and was one of the 3 people seeking to build Singapore’s second casino.

Kim Townsend is glad to be back home. A senior vice president of marketing for Las Vegas-based Pinnacle Entertainment, Townsend is scouting for houses in Egg Harbor Township near her sister's place.

She is one of four staffers approved by the Casino Control Commission Wednesday to act as liaison with the Sands as the acquisition of the 26-year-old casino hotel moves forward.

In addition, the commission approvals establish procedures to allow Pinnacle to take over and transport slot machines, gaming tables and other equipment, and to pay off Sands gaming markers to customers and control Sands casino records. Pinnacle will take over the Sands November 17, less than a week after the casino hotel closes its doors for good.

The Pinnacle-Sands deal is swimming in uncharted waters, said Kenneth F. Oettle, a lawyer representing Pinnacle. "Closing a casino and transfering its assets at the same time has not been done before."

Pinnacle, which lost out in its bid to acquire Aztar Corp earlier this year, will demolish the existing Sands to pave the way for a $1.5 billion resort which could break ground by the end of 2008, with an opening date, early in 2011.

The investigation by the state Division of Gaming Enforcement found no negative information on the four representatives. A full investigation of all Pinnacle prinicipals - a necessary step before the corporation is deemed qualified to run a casino - is still months from completion. Look for Townsend to be an integral part of the transition team.

Responding to questions about the Unlawful Internet Gambling Enforcement Act, Aces Club Casino stated:

"The recently passed bill, importantly, does not make gambling on the internet illegal, nor does it look to target individuals who enjoy gambling online. The bill seeks to prevent individuals placing bets online by restricting the methods that they can use to fund their Internet wagering accounts. Aces.com is licensed by the government of Antigua and Barbuda, and we are obliged by the terms of this license to always maintain enough funds in our bank accounts to pay out every single winning wager for our customers. The funds in internet wagering accounts are accessible 24/7, and we will continue to process payouts within the standard timeframes. One can continue to bet with Aces.com the way one always have done.

We suggest that if there are any concerns of the legality of wagering online, one should contact a legal expert or a representative of local attorney general's office for more information.

Aces.com is now privately owned with offices and representatives in Costa Rica, Ireland and Canada. The management team who have lovingly built Aces.com remain in place."

Well, that certainly didn't take long. President Bush was quick to sign the Unlawful Internet Gambling Enforcement Act last Friday - legislation loosely tied on to the broader Port Security Act - sending the online poker community into a tailspin.

The signing of the legislation was marked as a triumph for the security of the country. The $400 million port-security bill is designed to further inspect shipping containers, keeping them void of nuclear, chemical and biological weapons.

Bush was ecstatic during the signing ceremony, and for good reason. In this post-9-11 world, security talk is the kind of stuff people like to hear from elected officials.

"We're going to protect our ports. We're going to defend this homeland, and we're going to win this war on terror," Bush said to reporters at the signing ceremony.

All of the talk was focused on security, and Bush made no reference to the part of the bill that attacks the online poker industry.

In the eyes of lawmakers, it was illegal to do it before, and continues to remain illegal today. All they did was make it more difficult to do by forcing banks to block wire transactions to offshore gambling enterprises. Rest assured, nobody is going to jail or will get so much as the equivalent of a parking ticket for playing Internet poker.

To be fair, the security of our nation's ports from nuclear and biological weapons should take center stage over online poker in any discussion. Nice work. But what is unfair is the fact that an activity enjoyed by an estimated 3 million people in the U.S. seemed to get shoved through the political system with very little debate and discussion.

Sportingbet has warned that the US is encouraging the creation of a black market through its online betting ban, after announcing it is taking a hit of £210m on the sale of its business Stateside.

Announcing its annual results this morning, the UK-based firm said its profits had risen by 75% to £71.5m, but that next year's conditions will be very different following the legislation's approval by president Bush last week.

Of the £303.3m in gross profit Sportingbet generated in the year to the end of July, £196.7m came from US-based users, which the firm said made up 56% of its customer base.

Last Friday the company sold its US operations to an Antiguan company for just $1. It now says it is focusing on Europe and the rest of the world.

Nigel Payne, Sportingbet's executive director, said there was "little sign" that governments would embrace its call for international online gambling rules.

“The Board has continued to lobby for the adoption of consistent and transparent policies promoting the benefit of proper regulation.

"However this year has seen a fragmentation of the Group's efforts, with many governments compromising this policy for various motives, be they fiscal protectionism or political gain."

The most recognized dice game at the online casino is definitely the fast, exciting and immensely popular game of Craps. Previously known as Crabs, it is basically a simplification of the old English game 'Hazard', a game which dates back to the 14th century and was once popular among high-stakes patrons in English gambling houses. Players wager money against the online casino on the outcome of one roll, or of a series of rolls of two dice. Sounds nice alright, but exciting? Well, it is the idea of Craps that makes it the thrilling game that it is at the online casinos, as it is the legacy and the stories that are associated with it.

The game is definitely responsible for many fortunes changing hands, players going from rags to riches and vice versa. One of the stories associated with the game, blames it for the Great Chicago fire of 1871. What had turned out was that someone knocked over a lantern, setting a fire to a barn and sparking the conflagration which destroyed much of Chicago. The guilty man simply could not put the fire out because he was winning at Craps. So the story goes.

Stories aside, the main reason for Craps being so popular at the casinos is the atmosphere surrounding the craps tables. The players are allowed to cheer and shout when the dice are rolled out on the table. Being in the middle of this can get your adrenalin working, and the online casinos working with the top online casino software providers have managed to capture this excitement and transfer it to the online realm.

When Wynn Las Vegas was unveiled 17 months ago, the opening of the $2.7 billion resort triggered a slew of announcements about other potential Strip projects.

A collection of hotel-casinos, residential high-rise and mixed-use developments have been proposed along the Strip, from the boulevard's far southern reaches to 16 miles north just south of Sahara Avenue.

The avalanche of declared projects validated the predictions of Wall Street gaming analysts and casino industry observers who had speculated that Wynn's April 2005 opening -- the Strip's first new casino in almost five years -- would inaugurate the newest construction boom.

Just what ultimately gets built, however, remains to be seen.

"The Las Vegas history book is filled with pages detailing casino announcements that have never been built," said gaming analyst Matthew Jacob of Majestic Research. "That said, a lot of projects are proposed by private entities that may not have their financing lined up. Others may have an idea, but are still looking for land. For some (projects), the public announcement is just the first step."

Local developers plan to add 41,423 hotel rooms to the market countywide through 2010, the Las Vegas Convention and Visitors Authority reports. Those rooms would add to the current inventory of 133,347 guest rooms.

Since Wynn Las Vegas' opening, several Strip projects have started and are now far along into construction. The initial 4,000-room hotel-casino that is the centerpiece of MGM Mirage's $7 billion Project CityCenter development is now tall enough for Strip pedestrians to see. Other aspects of the massive project, billed as an "urban metropolis," are also taking shape.

Construction is also well under way on the Palazzo, a $1.8 billion hotel-casino Las Vegas Sands Corp. is building next to The Venetian. Opening is planned for the middle of next year. Wynn Resorts Ltd. has started building Encore, a $1.74 billion hotel-casino next to Wynn Las Vegas. The $500 million Trump International condominium-hotel tower and the $1.8 billion Cosmopolitan, a hotel-casino-condominium development, have both been under construction for a year.

Meanwhile, many other proposed projects are still on the drawing board.

Plans for the Fontainebleau, a $1.5 billion hotel-casino proposed by Turnberry Associates and former Mandalay Resort Group President Glenn Schaeffer, were announced more than a year ago for a site just west of the Turnberry condominium towers on which the El Rancho had stood. Clark County commissioners want traffic concerns addressed before approving the zoning.

One gaming analyst who asked not to be named expressed confidence in Fontainebleau.

"Someone like Glenn would not have pursued this unless he thought it was a viable project," the analyst said. "I think he would have had an opportunity to do a lot of other things."

Plans for a redevelopment of the New Frontier by owner Phil Ruffin have evolved over the years from a San Francisco-themed project to a $2 billion hotel-casino that would resemble a resort in Switzerland. Financing, however, has not been announced and a development timetable has not been set.

Gaming analysts speculate that Ruffin's condo-hotel partner, New York billionaire developer Donald Trump might eventually have some involvement in the New Frontier's plans. Trump is building the Trump International on land behind the New Frontier.

Deutsche Bank gaming analyst Bill Lerner called the New Frontier's center Strip site across from Wynn Las Vegas an "enviable location." But he doesn't believe the project will be completed in the manner that has been announced.

Brian Gordon, a partner in the Las Vegas-based financial consulting firm Applied Analysis, said the Swiss theme is a new concept to the Las Vegas market. He also said Ruffin appears to be assembling a qualified team to help with the project.

"Being privately held provides some financing flexibility," he said.

Most gaming analysts scoffed at the notion of a $1.2 billion hotel-casino ever getting built by the owners of Maxim magazine and a California real estate developer, who announced a project on June 5. The proposed hotel-casino would have to fit within the confines of an oddly shaped eight-acre parcel near Circus Circus.

Jacob, although unfamiliar with the Maxim project, said it could be a case in which a company pitches a proposal to see if there is any interest of financial backing.

Another gaming analyst said the Maxim's target audience would seem to put the casino in competition for the same customers as the Palms and Hard Rock Hotel.

"I'm uncertain on all fronts about this one," the analyst said.

Lerner thought that only a small percentage of what's been announced will actually come to fruition.

"We continue to believe that only a fraction of currently planned (or) proposed high-rise projects will ultimately be built," Lerner said. "Developers without solid track records or who are not well capitalized or not affiliated with existing brands or casino resorts will likely have the highest failure rates."

Dennis Farrell of Wachovia High Yield Research, said MGM Mirage's Project CityCenter won't face the financing worries of other developments. He said he was sure CityCenter would be built just as the company planned.

"MGM Mirage can leverage their economies of scale and balance sheet to provide certainty for the completion of CityCenter especially if the lending environment becomes challenging in the capital markets," Farrell said. "In our view, the capital markets will decide which projects will be built in Las Vegas as we believe debt financing will range between 70 percent and 80 percent of total project costs."

CRT Capital Group gaming analyst Steve Ruggiero said rising costs for labor and construction materials could hold up some possible Strip projects. He also said that if the high-rise residential sales market slows, many of the condominium-hotel ventures could be shelved.

"It may be the (2,900 high-rise residential units in) MGM Mirage's Project CityCenter may be the last ones standing if consumer and residential sales flounder," Ruggiero said.

Analysts seem as sure of Boyd Gaming Corp.'s Echelon Place as they are of MGM Mirage's Project CityCenter.

Echelon Place was originally planned for 63 acres on which the Stardust now stands. The Strip hotel-casino will close Nov. 1 and demolished early next year. The Echelon Place site will grow by 24 acres to 87 total acres early next year when a Strip land swap with Harrah's Entertainment closes. Boyd Gaming traded the Barbary Coast to Harrah's for the additional land adjacent to the Stardust site.

In January, Boyd Gaming said it would spend $4 billion to develop boutique hotels, a hotel-casino and entertainment venues. A large convention center was also on the wish list. Some gaming analysts think Echelon Place's makeup may change over time. "This is an important development for the north end of the Strip," Lerner said. "But I wouldn't be surprised to see a residential component added if additional acreage is acquired."

Ruggiero said any slowdown in Las Vegas tourism could mean Echelon would be constructed in stages, rather than all at once. "There is a need for quality midlevel rooms and an integrated convention-retail-casino experience that Echelon will likely satisfy," Ruggiero said.

Jacob said he thought Echelon will help spur Strip development northward and perhaps spark the much rumored sales and redevelopments of the Riviera and Sahara. He credited Wynn Las Vegas with fueling the start of a northbound development trend.

"The older, northern Strip properties have been at a bit of a disadvantage," Jacob said. "Wynn and Echelon will help those properties thrive as well."

Ruggiero said Palazzo and Encore will give Las Vegas Sands and Wynn Resorts much needed room capacity on the Strip, but he cautioned the combined 5,000-plus hotel rooms will dilute the average daily room revenues generated by high-end properties.

"The high-end properties will need to promote more aggressively," Ruggiero said.

Although Project CityCenter is the largest current construction site, the project could be eclipsed by whatever Harrah's decides to do with almost 120 acres the company controls on the Strip's east side, stretching from Paris Las Vegas to Harrah's and everything in between. The stretch will include the Barbary Coast once the Boyd deal closes.

Harrah's has not presented a development plan for the land but has said it is considering alternatives.

Most analysts think the Imperial Palace, which sits on 18 acres, will be closed and demolished while the remaining casinos will be integrated in some fashion. Bally's, some analysts predict, will be rebranded as a Horseshoe.

The analysts questioned all expected Harrah's would pry the Barbary Coast from Boyd Gaming. The deal was announced two weeks ago.

"The Harrah's project would have a stronger presence if it also owned the land under which the Barbary Coast is located so that it could develop the ever-important corner of Flamingo and Las Vegas Boulevard according to its own specifications," Ruggiero said.

What the analysts ARE SAYING

Project CityCenter
"A transformational project for Las Vegas."

Fontainebleau
"A quality developer with experience in this marketplace. Looking forward to seeing (former Mandalay Resort Group President) Glenn (Schaeffer) again."

Echelon Place
"Many investors underestimate the brilliance and execution capability of Boyd Gaming. Management talent will get the job done, and the city needs a midmarket project of this magnitude."

Maxim
"Highly speculative as currently planned given the site configuration."

Cosmopolitan
"Executive turnover in previous months suggests there may be some difficulties, but the project is likely to move forward."

Olympia Gaming
"There needs to be a little more time for that part of the valley to comfortably absorb this supply."

Trump International
"This will be a success for both Trump and Las Vegas."

New Frontier
"The timing is uncertain. Will Trump enter the picture at some point?"

Palazzo
"Las Vegas Sands needs this additional room capacity. It's clearly moving as planned; sufficient capital and a great location."

Encore
"The Encore is an important second tower for Wynn Resorts that will enable the company to leverage its cost structure."

Palms Place
"A solid residential location."

W Hotel
"While we believe the W project is experiencing delays, we do believe that it will ultimately be built, unlike other notable projects."

Edge East
"A great location."

Harrah's Strip
"Harrah's (Entertainment) has the ability to successfully integrate its Strip properties and it will represent a powerful alternative for consumers."

The new law banning internet gambling in America created fresh waves as PartyGaming cancelled its dividend and the AIM-listed World Gaming said that it was in discussions with its banks.

PartyGaming, the world’s biggest internet gambling firm, said that it had decided to cancel the interim dividend of three cents a share that was due to be paid on October 31 in order to spend the money - a total of $120 million (£64 million) - on acquisitions.

World Gaming, which derives more than 90 per cent of its revenues from American punters through sites such as sportsbetting.com and betonusa.com, said that the “material adverse change” to its business from the new law could put it in “technical default” of its loan agreement.

The group has net debt of $23 million. It said: “The company continues to operate and is in discussions with its lenders.” The American crackdown could not have come at a worse time for World Gaming, which last month announced an all-paper takeover by Sportingbet worth £56.6 million, just hours before it emerged that Peter Dicks, Sportingbet’s chairman, had been arrested in New York. He was released last week.

888 Holdings, a rival, said that it planned to turn its American gaming platform into an entertainment website when the new law takes effect. One area may be fantasy sports, where punters can win cash prizes for selecting successful fantasy sports teams.