State gambling authorities in Indiana cool on satellite casino concept

13.10.2005

A proposal to deliver casino gambling via satellite to client homes or businesses has so far received a cool reception from state gambling authorities in Indiana, according to US press reports this week.

The Kenilworth Systems Corporation technology company proposed to broadcast an Indiana casino's roulette wheel, baccarat and other games to gamblers' homes through a microprocessor on a TV-top box or to racetracks, off-track betting parlors, lottery locations, hotels or other sites that another state or country might authorise.

The quid pro quo was that Kenilworth would allocate 2.5 percent of its revenues from wagers prior to expenses to the state, capped at $1 billion.

State regulators said that the company probably couldn't be licenced to do business in the state and might not be able to find a willing casino partner anyway. However, in a report requested by legislators the Indiana Gaming Commission did not explicitly endorse or dismiss Kenilworth Systems Corp.'s proposal.

The commission did make the point that the offer presents significant hurdles for state government, and said that Kenilworth failed to provide much of the information requested, making it difficult for the staff to evaluate the reportedly financially troubled company in full.