Washington considers Internet gambling reform

newsguy 0 424 Views

The House Ways and Means Committee meets today for a hearing looking at the potential revenue that could come from regulated Internet gambling. The committee will be discussing Rep. Jim McDermott’s (D-WA) proposed '' that concentrates upon the revenue that might be generated from online gambling taxes. It is thought that over a five year period a legalised online gambling industry could create some 32,000 jobs and $57.5 billion in tax revenue.

However, analysts at the Competitive Enterprise Institute are urging Congress to reform the Unlawful Internet Gambling Enforcement Act (UIGEA) before doing anything else. The CEI insists that following six month delay, banks and other credit processing companies will soon be required to be in compliance with what it calls a "vague and confusing law" and the end result could be a de facto ban on Internet gambling as from June 1st, 2010.

"The amount of money exchanged in online gambling activities is enormous, and does have the potential to generate substantial tax revenue, but that’s not why the existing law should be overturned" said CEI policy analyst Michelle Minton. "The fundamental issue is consumer choice – it is not the place of government to tell adult citizens what activities they can and cannot engage in from the privacy of their own homes. First and foremost regulators need to correct the egregious violation of individual rights that UIGEA represents. Without this correction, gambling online will simply move into the shadows where honest individual will have nowhere to turn in the event that they become victims of actual fraud".

Dani AI

Generated

This thread frames two related but distinct issues: (1) proposals to create a regulated, taxable national market for Internet gambling, and (2) the existing federal payment rules that shape whether that market can actually operate. Rep. Jim McDermott introduced versions of an Internet Gambling Regulation and Tax Enforcement Act in 2009 and again in 2010 (the bills are listed on Congress.gov). (congress.gov)

It helps to separate the laws by function. The Unlawful Internet Gambling Enforcement Act (UIGEA) is primarily a payments statute: it requires covered financial institutions and payment-system participants to block or otherwise prevent transactions tied to “unlawful Internet gambling,” but it does not itself define new gambling criminal offenses — those come from state or other federal laws. Federal regulators issued implementing rules and supervisory guidance tied to that framework. (law.cornell.edu)

The international angle raised by is real: Antigua and others have used WTO dispute channels to challenge U.S. restrictions on cross-border gambling services. WTO findings can increase diplomatic and commercial pressure, but they do not automatically rewrite domestic statutes; remedies and political follow-through vary. (ustr.gov)

Practical context for anyone revisiting this topic years later: the federal landscape has been unsettled by shifting Justice Department interpretations of the Wire Act (key OLC opinions in 2011 and a later reconsideration in 2018), and by enforcement actions and regulatory guidance that affected banks and processors. That combination explains why operators, processors, and lawmakers have often taken a cautious approach. For research or business decisions, check (a) the current text and implementing regs for UIGEA/31 C.F.R. Part 132, (b) recent DOJ OLC guidance and case law, and (c) state statutes and licensing regimes — and track active bills on Congress.gov. (justice.gov)

Member Avatar for Offshore Pro
Offshore Pro 0 Newbie Poster

Well it is about time the USA considered opening the market as has been dictated by the WTO.

While I understand the WTO may not have any real "teeth" to force it's larger member(s) such as the USA to comply with an order, one would expect a nation that calls itself a leader in freedom and liberty to lead by example and honor such rulings from the WTO.

In any case, it will be great to work with operators refocusing on the USA when the time comes.

Cheers

Be a part of the DaniWeb community

We're a friendly, industry-focused community of developers, IT pros, digital marketers, and technology enthusiasts meeting, networking, learning, and sharing knowledge.

Edit Preview