Terry Lanni, chairman of MGM Mirage Inc, told attendees of the fourth quadrennial Racing Congress that gaming companies and racetracks should work together to legalize more forms of Internet gaming.

Currently, only pari-mutuel racing is exempt from a law that prohibits gambling on the Internet.

Lanni delivered his remarks during the opening day general session of the Thoroughbred Racing Association and Harness Tracks of America joint annual meeting on Wednesday at the Bellagio in Las Vegas. The Bellagio is a part of MGM-Mirage's portfolio.

"Online gaming is a multibillion dollar industry, and it's ridiculous we can't be part of that," Lanni said. "We should be able to utilize our brands—racetracks and casinos—to give people confidence to wager online."

Lanni cited a poll that indicated more than 60% of people have at least some concern regarding whether they will receive payment from offshore wagering sites on winning wagers.

"That's the best business to be in," Lanni said. "You have people willing to pay even though they think they have to win twice: once with the bet and once regarding concern if you'll pay them."

Offshore gaming companies are not just the scourge of racetracks, either, as Lanni offered statistics showing that Americans wager a staggering amount of money on sports.

Americans can make a legal wager on a sporting event only in Nevada, where about $94.5-million was bet on this year's Super Bowl compared to an estimated $1-billion offshore.

"Party Gaming admits that Americans wager on its site and that a significant portion of its revenue comes from those who shouldn't be using the site," Lanni said. "You have people volunteering to pay a tax, and the government won't go for it; it's a farce."

Lanni said that despite the differences in the types of players who play the various games, casinos and racetracks have much in common because in the current entertainment age, both industries must rely on avenues other than gaming to keep the customer happy.

Las Vegas casinos used to count on gaming to bring in up to 80% of its revenue. That figure at the MGM Mirage properties is closer to 42%, and at the ultra-luxurious Bellagio the figure is closer to just 25%. Lanni is a horse owner who is on the board of directors at Del Mar Thoroughbred Club. He is a former director of Magna Entertainment Corp.

"I congratulate Magna on taking a chance doing the things they're doing," Lanni said. "Maybe I'd do some things differently, but at least Magna understands the need to try things. There's too much criticism in this game when people try to make changes. Maybe some things will work and others won't. More can be done, but at least Magna's doing something."