What’s the Deal II

Continuing the breakdown of the highly controversial Unlawful Internet Gambling Enforcement Act (UIGEA), in addition to vague wording and definitions for the rule itself, the consequences for violating the law are unclear, and also the actual law itself has raised concerns over whether it is too much to handle in today’s current market. The law actually outlaws the financial transaction made by people who try to play online slots or casinos through foreign organizations. However, the actual action of playing is quite legal. The way this is formulated has been the source of many arguments and raised eyebrows of people who are concerned with the foundation of the legislation.

The reasons for passing this type of ban have been unclear, even with so many benefits to regulation and licensing. So far it looks like the law is really doing more harm than good, since people are still gambling online, and the government is losing out on all the benefits other countries have from regulation. Some benefits are increased revenue through taxation, others include a safer more effective way to monitor and regulate playing activity of individual players. The ban in general has been widely supported by the conservative right Republicans, who have yet to give explicit reasons supporting their fear of internet casinos.

Some reasons that most cite (which often have vague support or credibility) include the dangers of gambling activity of minors, as well as the higher possibility of cheating in the privacy of one’s own home. What these common arguments overlook is the fact that with legalization comes regulation, which would enable safety features that would minimize these issues, as well as create room for programs about education and resources for those who do find themselves in trouble. These programs could be funded in part by the money that would come from taxing online slots and casino activity, something which the US is really missing out on while legislators debate hypothetical issues that are so far removed from what is actually happening in the world.

Either way, as both Republicans and Democrats are finding more and more holes and flaws in the law, it is clear that there needs to be a change.

Back to August 2008 Archive.