Slices of the gaming pie may be getting smaller as more jurisdictions vie for gamblers' dollars, but the industry's expansion—and contraction—has meant more opportunities for lawyers to get in on the action.

Gaming lawyers from multiple jurisdictions abounded in Philadelphia this week as the applicants and current casino operator license holders vie for or oppose the second casino license up for grabs in the city. More than 30 law firms were listed on the Pennsylvania Gaming Control Board's website as representing either applicants, existing license holders or manufacturers of gaming equipment. And that was for just one casino in one city. The firms included some of the largest in Pennsylvania, a number of smaller Harrisburg-based firms, several out-of-state firms and even one from Australia.

In the decade since the Pennsylvania Race Horse Development and Gaming Act of 2004 was passed, a number of Pennsylvania firms have made a foray into the world of gaming law, with some tailoring their practice to Pennsylvania's specific law, others looking regionally, and some utilizing the resources of their international platform to offer gaming services in multiple markets. But New Jersey firms, as evidenced just by the list of firms involved in the Philadelphia license application process, are still very much a player in the Pennsylvania market as clients look to their 35-plus years of experience with gaming in Atlantic City. …

The gaming industry is in a unique spot in that it is both expanding to new markets and seeing many existing markets suffer bankruptcies and casino closures.

The gaming industry is an "exceptionally competitive market," said Duane Morris Cherry Hill, N.J.-based partner Hersh Kozlov. "The margins are narrowing in the gaming industry with the competition. ... There aren't new gamblers coming out with new casinos, so the pie is getting cut."

And sometimes, clients get cut too. Kozlov and his team at Philadelphia-based Duane Morris represented ownership of the Atlantic Club Casino in Atlantic City as it closed its doors earlier this month. The firm has been involved in the recent Philadelphia casino license process as well as many of the recent Atlantic City casino bankruptcies, he said.

Aside from Pennsylvania and New Jersey, Duane Morris also does a lot of work through its Baltimore office in Maryland gaming as well as handles matters in Delaware.

Whether it's game development, game theory, casino approval, casino refinancing, game approval or employment law issues, the legal work is varied, Kozlov said.

As some of Atlantic City's marketplace contracts, the New Jersey gaming scene has expanded with the recent approval of Internet gaming. Kozlov said his firm represents the casinos where the servers taking bets have to be housed and has handled contracts with Internet service providers.

Kozlov said it's only a matter of time before other jurisdictions such as Pennsylvania look at Internet gaming. …

Reprinted with permission from The Legal Intelligencer, © ALM Media Properties LLC. All rights reserved.