MGM Grand's Lanni Joins Youbet.com

The gap between traditional and interactive gaming in the United States has widened in recent months thanks to investigations of American Wagering Inc. and Youbet.com as well as a warning from the Nevada Gaming Control Board to slot machine manufacturer International Game Technology. It was only a matter of time, however, before someone came along to lay down another bridge.

That someone is MGM Grand Chairman Terrence Lanni, who was elected this week to Youbet.com Inc.'s board of directors. Considering the zero-tolerance approach toward Net betting taken by Nevada regulators, the move comes as quite a surprise, although it was somewhat foreshadowed in October of '99 when Lanni proclaimed that he was interested in pursuing Internet-related ventures.

"I definitively believe the Internet will be the equivalent of the industrial revolution," said Lanni, who's also on the board of PurchasePro.com, a Las Vegas-based Internet company. "There will be a significant number of failures, as there were with the industrial revolution, but there will be a significant number of winners too."

In light of the Nevada Gaming Control Board's reprimanding of American Wagering for allegedly allowing its Australia-based Internet sportsbook, Megasports, to accept bets from investigators in Nevada, Lanni's association with You Bet could be risky business. He pointed out, however, that he has full confidence in You Bet's dedication to playing by the rules. "You can build a reputation in 20 or 30 years," Lanni said, "but you can destroy it in five minutes. I wouldn't do anything to hurt my standing in Nevada."

Lanni instead is looking beyond domestic ventures and pointed out that You Bet is shifting its focus to explore opportunities on a global scale.

As a member of the National Gambling Impact Study Commission, Lanni cast the lone vote against recommending the prohibition of online gambling, and is outspoken about his belief that prohibition in the U.S. won't work. Lanni's sentiment on Congress's attempt at banning Net betting: "Don't pass a 'feel good' resolution if you don't have a practical way to enforce it."

For You Bet, Lanni's appointment could be just what the doctor ordered. The company's stock fell dramatically in June after the company offered 3.5 million shares on the Nasdaq and continued to drop in following months while the company was investigated for illegal betting activity in California. Since last summer's stumble, the rate at which new tracks joined the You Bet network had decreased. The company's stock, previously as high as $24, bottomed out at $3.3125 following the raid in October.

You Bet CEO Robert Fell, naturally, is thrilled to have Lanni aboard. "We are delighted with the addition of Terry to our board," Fell said. "His experience at MGM Grand and Caesars World give him a wealth of knowledge about our industry which will prove invaluable as we continue to grow and develop as the premiere global online live sporting event company."

Lanni added, "I believe that Youbet.com's leading edge technology augurs well in positioning it in becoming the leading global online company in the gaming space. I am excited about working with both the very capable board and Bob Fell and his management team as they execute their vision."

Don't expect the MGM Grand online race book to come onto the seen today or tomorrow, but the Lanni appointment signifies that at least one person in Nevada has seen the light.