ArticlesThe Debate Over Online Gambling
- By JP Masters
- Published 11/14/2007
- Poker
- Unrated
Last year online gamblers were caught by surprise when former senate majority leader Bill Frist introduced the Unlawful Internet Gambling and Enforcement Act (UIGEA) into the Safe Port Act, effectively banning fund transfers from financial institutions to gambling site.
Four bills have been introduced since into Congress addressing online gaming, the most prominent is H.R. 2046. that was introduced by Rep. Barney Frank, calling the UIGEA "an inappropriate interference on the personal freedom of Americans."
This new legislation creates licenses for qualified operators already allowed to operate under state and Indian tribal law.
The issue of regulation is important at a time where local law conflicts have led to an international problem. Antigua and Barbuda successfully sued the U.S. for unfair trade practices Using the World Trade Organization (WTO) to settle the dispute, eventually winning a $3.4 billion award.
The U.S. hardlined position could end up costing taxpayers a significant amount of money. Thirty-five countries, including the 27 members of the EU, have joined Antigua and Barbuda's complaint to the WTO, taking the possible cost to the U.S. estimate as high as $100 billion.
The issue could be resolved by approving Frank's bill, according to industry analysts. If the U.S. chooses to regulate Internet Gambling, leveling the field between domestic and foreign internet operations, it will not face paying billions in trade compensations.
Another hot seat item on the discussion table is the impact that the UIGEA caused on online poker playing in the U.S. Many online poker sites fearing sanctions, stopped accepting customers from the U.S. practically overnight. But as the demand and popularity of poker keeps growing, legislators are hard pressed to change things. This year for example, the World Series of Poker tournament attracted 6,358 entrants, with a prize pool totaling $59,784,954. First place taking home a cool $8,250,000.
The double standard that's prevalent does not reflect reality. Regular poker is already legal in many places in the U.S., including California and Nevada. Online poker would be legal in those places if not for the UIGEA.
And with 60% of Americans approving of some form of gambling, it's hard to see the logic with maintaining restrictions. This is an industry asking to be regulated, and that could potentially open up the flood gates for millions of dollars in tax revenue for federal and state governments.
Four bills have been introduced since into Congress addressing online gaming, the most prominent is H.R. 2046. that was introduced by Rep. Barney Frank, calling the UIGEA "an inappropriate interference on the personal freedom of Americans."
This new legislation creates licenses for qualified operators already allowed to operate under state and Indian tribal law.
The issue of regulation is important at a time where local law conflicts have led to an international problem. Antigua and Barbuda successfully sued the U.S. for unfair trade practices Using the World Trade Organization (WTO) to settle the dispute, eventually winning a $3.4 billion award.
The U.S. hardlined position could end up costing taxpayers a significant amount of money. Thirty-five countries, including the 27 members of the EU, have joined Antigua and Barbuda's complaint to the WTO, taking the possible cost to the U.S. estimate as high as $100 billion.
The issue could be resolved by approving Frank's bill, according to industry analysts. If the U.S. chooses to regulate Internet Gambling, leveling the field between domestic and foreign internet operations, it will not face paying billions in trade compensations.
Another hot seat item on the discussion table is the impact that the UIGEA caused on online poker playing in the U.S. Many online poker sites fearing sanctions, stopped accepting customers from the U.S. practically overnight. But as the demand and popularity of poker keeps growing, legislators are hard pressed to change things. This year for example, the World Series of Poker tournament attracted 6,358 entrants, with a prize pool totaling $59,784,954. First place taking home a cool $8,250,000.
The double standard that's prevalent does not reflect reality. Regular poker is already legal in many places in the U.S., including California and Nevada. Online poker would be legal in those places if not for the UIGEA.
And with 60% of Americans approving of some form of gambling, it's hard to see the logic with maintaining restrictions. This is an industry asking to be regulated, and that could potentially open up the flood gates for millions of dollars in tax revenue for federal and state governments.
