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Web Surfing May Lead to Web Gambling, Analysts Say

Mandalay Resort Group has been the strongest promoter for Web-based room reservation bookings, said Marc Falcone, an analyst for New York-based investment banking firm Bear, Stearns & Co.

His firm estimates 10 percent to 12 percent of Mandalay Resort Group rooms are booked via the Internet. Falcone said MGM Mirage is filling about 10 percent of its rooms via e-bookings. About 5 percent of Park Place Entertainment rooms are booked on the Internet, he said.

Both Nevada and New Jersey legislators are drafting bills that aim to allow companies with state-issued gaming licenses to accept Internet wagers from gamblers using computers in jurisdictions that allow for such activity.

``…Mandalay Resort Group Senior Vice President of Marketing John Marz said he agrees increased Web site traffic could help build a loyal customer base that may become Internet gambling clients. However, he said that concept is not driving the company's cyberspace agenda.

```Our motivation to expand our Web site (offerings) is to expose our product to more people so they purchase our product,' Marz said.

MGM Mirage spokesman Alan Feldman, whose company has been a vocal proponent for the legalization of e-gambling, stresses a distinction between sites that offer games-for-prizes and those that offer a channel for booking room reservations.

``…Encouraging casino customers to use their Web sites for nongambling purposes is important for gaining a customer loyalty base, said Brian Egger, a gaming analyst for New York-based Credit Suisse First Boston.

`Customers need to be comfortable with the site before they start using it for interactive gambling,' Egger said.

``…Casino Web sites and games-for-prizes sites are also aimed at building customer databases for marketing purposes…"

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