America Divided Over Online Gambling Proposals

Published Saturday, January 05, 2013 -

The State of New Jersey in the USA is poised on the thresh hold of making online gambling a reality. Meanwhile the State of Iowa Lottery is asking the US Congress to strike down proposals for online gambling. The CEO of the Lottery, Terry Rich, recently went to Washington, D.C. to lobby the issue, coordinating efforts with the North American Association of State and Provincial Lotteries Rich released a report to the Iowa Legislature’s Government Oversight Committee containing the reasons for the visit. The report detailed, “The lotteries emphasized that the federal government should not infringe on states’ rights to implement and to regulate Internet gaming within their own borders. Lottery staff also stressed that individual states are best equipped to respond to their citizens’ unique local preferences and decide what, if any, intrastate gaming should occur within their jurisdictions.” Rich explained that Illinois and Georgia already have the ability to sell lottery tickets online and Delaware has agreed to offer online gambling with their state lottery.

Rich is concerned that the proposal put forth by Harry Reid will compromise the state’s tax situation. Rich continued with his report, “The Iowa Lottery has raised more than $1.4 billion for vital causes, including economic development, education and support for Iowa veterans and their families. Across the nation, in 2011 alone, lotteries provided $25 billion in net profits to local causes. In short, state lotteries are funding important missions. Congress should not enact legislation that supersedes state authority and that selects winners and losers.”

The legal bind that New Jersey faces by its proposal to offer online sports betting is the canary in the coalmine scenario. The tip of the iceberg for legal challenges is starting to appear as the individual states of America declare their interests and needs with regard to online gambling legislation in the Federal arena.

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