Internet gambling is growing worldwide at an astronomical rate and more and more US states are tuning into the positives for legalizing online gambling. Up until now, internet-based casino gaming, poker and sports betting have been legalized in certain countries like in Canada and the UK. One example of the growing revenues in the UK include a planned merger between UK Party Gaming PLC and Austria Bwin Interactive Entertainment AG. If this merger takes place, it will create a gambling company with an estimated $885 million in revenue according to the Wall Street Journal.
Many supporters in the US are eager to try to capitalize on the substantial amount of money that is streaming out of the country and use it to help deal with the huge budget gap in 2010 as well. Ever since the Unlawful Internet Gambling and Enforcement Act was passed in October of 2006, the wall have been hard to tear down. It is said that the taxation estimates that legalized online gambling would raise more than $40 billion in new tax revenue over a decade.
As far as progression towards legalization, it is estimated that New Jersey will be the first of the US states to authorize some of those online gambling activities within the next five years. Iowa began a debate in January to legalize state-licensed casino operators to offer internet poker. Shortly thereafter, New Jersey introduced the same idea that would authorize Atlantic City casinos and state race tracks to operate internet casino gaming and sports betting. Then in March, Florida announced it would be authorizing the state’s first licensed card room operators to offer internet poker and following in June, California decided to permit up to three licensed operations to provide internet gambling, not just poker.
Progress is slow, however, in California, Florida and New Jersey because of some varying factors. For one, disagreements continue as to how, and in some cases, whether to implement licensing, taxation and regulation. All of these decisions are truly complicated matters and will take time to draw out. There is opposition from state lawmakers about the impact internet gambling will have on the economy and on society morale. Concerns have been raised that by limiting internet gambling within certain state borders federal laws will be violated that were drawn back in 1960s.
So far, educating lawmakers and brokering compromise between stakeholders in brief legislative sessions have been challenging along with competing political issues. It is unlikely that California, Florida or Iowa will be making strides in legalizing online gambling any time soon. In California, tribal gaming operators are in-fighting. In Florida who just recently passed the largest gaming-expansion deal in state history in 2010 is unlikely to back internet poker with any brevity. Still, according to Bill Lerner, an analyst at Union Gaming in Las Vegas says, “It’s a matter of when it will happen, not if it will happen. It would be regulated, first at state level when it then could gain traction on a national level.” Meanwhile, the US waits and watches in the wings for take-off while the UK, Canada, France and others fly far ahead.
23 September, 2010