My recent Technology Law column in eCommerce Times describes
why the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA)
has merely driven Internet Gambling off-shore and as result the US is losing
billions of dollars of tax revenue. Generally the UIGEA resulted from four
major policy concerns of the federal government:
the Internet was too easy a venue for compulsive gamblers.
the age of Internet gamblers could not easily be determined, and underage
gambling could not be controlled as with a brick-and-mortar casino.
a lack of regulation of Internet gambling made it easy to defraud gamblers and
rig the odds.
the anonymity of the Internet made online gambling a medium for potential money
Since the US economy is doing so
poorly Congress is considering legislation to regulate Internet Gambling which
would result in an estimated $42 billion in tax revenues over the next ten
years. Outlawing Internet Gambling failed much like Prohibition did in the
1920s. It's high time Congress rescinded UIGEA, to help the economy and
regulate Internet Gambling which clearly we cannot stop.