An Analysis of Internet Gambling

[BluffVin]

I searched and did not find any posts regarding this document and hadn't seen any posts referencing it. This is a large PDF file that outlines basically anything and everything you should know about online gambling. I'm not saying anything of the bias the AGA may have, it is simply a good document to find some interesting information. It presents both an overview and more in-depth looks at such things as the pending legislation and regulatory issues.

I think this is something people should take a look at as I thought it had a great deal of good info. While of course most people browsing these boards will surely skim through the introductory sections, there was still a lot of info I had not seen before. Specifically it includes information on the taxation gambling sites face and a variety of smaller internet gambling cases I had not read about before.

Anyway, just thought it was useful so take a look.

http://www.americangaming.org/assets/files/studies/wpaper_internet_0531.pdf

[LinusKS]

Thanks, Bluff. Very accurate, thoughtful assessment.

[ QUOTE ]
Traditionally, the Tenth Amendment of the Constitution has left it up
to individual states to decide whether or not to legalize and regulate
gambling activity for their citizens.

***

As previously noted, the Goodlatte bill, H.R. 4777, would allow states
to legalize intrastate Internet gambling...


The potential benefits from such an approach are
straightforward.


1. The state could protect its citizens by requiring that online
gambling businesses operate honestly according to that state’s
rules. State regulation would include social protections, such as
enforcing standards against underage gambling, requiring mechanisms
such as loss limits that gamblers could use to control their
gambling, and mandating the delivery of responsible gaming
information to online players.
2. The state could tax online gambling revenues, creating an
additional source of funding for public services. Although revenue
projections are always speculative, a small state with only one percent of the nation’s population might expect to raise close to
$20 million in taxes directly from in-state online gambling,
without considering additional revenues that would flow from an
increase in overall economic activity in the state.72
3. In-state legalization would end the widespread disrespect for the
law fostered by the current mismatch between policy and reality,
as millions of ordinary Americans gamble online on a daily basis
despite the official prohibitions against such gambling.
4. A state could nurture a new industry within its borders and stanch
the flow of its citizens’ dollars to overseas businesses. By requiring
that online gambling businesses locate their operations in-state, the
state could create employment opportunities for its citizens.

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Ultimately, the only way we're going to get legal internet gambling in the US, is through state licensing.

Of course, as long as off-shore sites can operate in all the states, without getting a license from any of them, there's little incentive for them to pursue it.

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Avid
online gamblers are surely not deterred by current policies; indeed, public
opinion research has found that a majority of online gamblers believe it
is either legal to wager online or are unsure about its legal status.73

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