LA Times Pro Online Casino Gambling
Published: Thursday, March 16, 2006 Online-Casinos.com
LA TIMES PRO ONLINE CASINO GAMBLING
"It is time for the U.S. government to face the facts: The issue is not
whether it is possible to stop online casino gambling; the issue is how to regulate
a business that not only exists but is growing."
Looking on the brighter side amidst all the legislative action in the States this
week was an op ed piece by David Carruthers of Bet On Sports which appeared
in the widely read and respected LA Times. He concluded that it is time
for the U.S. government to face the facts: The issue is not whether it is possible
to stop online gambling; the issue is how to regulate a business that not only
exists but is growing.
Commenting that if some members of Congress get their way, Americans won't be
able to place bets online, the article describes current moves by the likes of
Reps. Leach and Goodlatte, and Sen. Jon Kyl to put an end
to online casino gambling, and comments:
"But trying to shut down a multibillion-dollar industry with consumer demand
that includes an estimated 8 million Americans annually is an empty legislative
effort. Instead of outlawing it, Congress should regulate it.
"Online poker and online casino gambling is now a $12-billion-a-year industry.
Americans anted up more than $500 million to bet on this year's Super Bowl online,
an increase of more than 12 percent from last year and more than five times the
amount wagered through Nevada casinos. Overall, Americans wagered nearly $6 billion
online in 2005, compared to about $1.5 billion in 2001."
The story points out that the Wire Act was originally aimed at organised crime
and sought to prevent gambling businesses from operating by phone in states where
it was otherwise illegal to gamble. This law, therefore, shouldn't be applied
to Internet betting. "Besides, no case law or statute clearly defines where
Internet bets are actually taking place," says the author. "BetOnSports,
for example, is based in Costa Rica. Our customers can place bets from anywhere
that has an Internet connection. In part because of this ambiguity, no one has
been prosecuted for online betting under the law."
Carruthers writes: "Enforcing this outdated law, or passing new legislation,
would be foolish at best and a violation of privacy and individual freedom at
worst. Politicians who seek to prohibit online wagering in order to prevent underage
gambling, excessive gambling and corruption could address these goals more effectively
through regulation.
"It may surprise our critics to know that we share their concern about gambling
abuse. In fact, we have been seeking support from governments to devise systematic
ways to protect vulnerable populations. What this industry needs is regulation,
not to be pushed even further into the shadows, where organised crime and less
reputable people can carve out a niche for themselves."
Carruthers goes on to describe how online gambling venues fight the problems of
underage and problem gambling, and how regulation rather than prohibition could
strengthen that fight and at the same time deliver corporate governance surveillance
and tax benefits.
He draws attention to the more progressive approach to Internet gambling taken
by the British government and recommends this as a model for the U.S as regards
licensing and regulating online gambling, the establishment of a national gambling
commission to protect consumers, restrict the access of minors and prevent money-laundering
and other criminal activity.
The article concludes that it is time for the U.S. government to face the facts:
The issue is not whether it is possible to stop online gambling; the issue is
how to regulate a business that not only exists but is growing.
"We have begun the process by working to create an independent advisory
council to establish operating standards acceptable to everyone. Not only would
regulation strengthen companies that wish to operate responsibly, but legalising
our companies could also bring in billions of dollars in tax revenue. That's
one gamble that would generate benefits for all Americans."
