Argument for why online poker should be illegal? (requesting help)

[qdmcg]

I understand this isn't going to be a popular place to ask a question like this. However, I am in a Policy Analysis class and need to write a paper about this issue. I actually wrote a preliminary paper addressing why I thought it should be legal. For our final class presentation, the teacher took my topic and has forced me to be on the other side of the issue (ie, I am now arguing that online gambling should be illegal).

He wants us to focus on economic issues as opposed to moral issues. Any ideas? The only stuff I have is that gambling can be addictive and the nature of the internet will have consumers doing a lot more gambling that they would rationally want to. Also, the inability to tax foreign companies providing the services, and lastly the current ease with which minors can sign up to gamble online.

If anyone can give me some ideas, I would be appreciative. Even if you think they are incorrect, I wouldn't mind hearing what the opposing side is saying.

Note: I completely support and participate in online poker\gambling, I just have to write a stupid paper about why it should be illegal. Changing topics\sides is not an option.

[JPFisher55]

Write a paper on how the government has to save everyone from his or herself from all evils, especially addictive online gambling.
Oh yeah, write that the US Constitution is a "living and breathing document" that can be interpreted according to modern needs, conditions and society. Liberals love that line.

[Karak567]

this same question has been posted.... 3 times now?

[jeffman]

Money laundering, tax dollars lost, terrorism?!?

[Coy_Roy]

This subject can only be hurtful to our cause.

I refuse to participate.

[demon102]

cuz I be taking all ur monies son!!!

[GittyUP]

[ QUOTE ]


He wants us to focus on economic issues as opposed to moral issues. Any ideas? The only stuff I have is that gambling can be addictive and the nature of the internet will have consumers doing a lot more gambling that they would rationally want to. Also, the inability to tax foreign companies providing the services, and lastly the current ease with which minors can sign up to gamble online.


[/ QUOTE ]
The reasons you mentioned above all seem like reasons to make it legal.
1)the inability to tax foreign companies would be solved by making it legal and taxing domestic companies.
2)The ease of minors is only made easier by unregulated foreign companies as well. Yes there is a small argument that can be made that even domestic companies will let some minors slip through it is nothing worse then Brick and Mortor casinos with ID's.
3)The first point you made about gambling being addicting is a rather solid point. (except for the fact that poker is entertainment to a lot of people and they dont lose much more then any other sporting event would cost. And the arguement that the govt. should not regulate peoples wills and aspirations....ok ill stop there haha.)
Other more legitmate reasons are:

money laundering-this is very hard to regualte as any given poker hand could be shipping money accross borders.
Well thats the only thing I could think of.

What you should do is turn in a ten sentence paper and make a statement about out governments policies. Mainly they hold no academic, social, or economic benefit of any kind. Only moral.

[dxu05]

The lack of regulation outside of taxes is a major issue. While transactions that go through banks in the US can be traced and taxed, it's much harder to force a company in Antigua to comply with US gaming regulations. In addition, the online poker system can essentially be described as a limbo banking system of assets, the problem is banks comply with international banking standards and have highly able banking systems in place. For Pokerstars, the potential to money launder or be a major source of unmarked capital inflows into a country is insane. Basically, anytime money is received into the pokerstars system it becomes lost since pokerstars doesn't track how many dollars are lost by each player to another player. Thus, a strong argument could be made that a strong criminal element could use this to transfer large sums of illegally obtained cash into large sums of untraced cash.

[qdmcg]

[ QUOTE ]
The lack of regulation outside of taxes is a major issue. While transactions that go through banks in the US can be traced and taxed, it's much harder to force a company in Antigua to comply with US gaming regulations. In addition, the online poker system can essentially be described as a limbo banking system of assets, the problem is banks comply with international banking standards and have highly able banking systems in place. For Pokerstars, the potential to money launder or be a major source of unmarked capital inflows into a country is insane. Basically, anytime money is received into the pokerstars system it becomes lost since pokerstars doesn't track how many dollars are lost by each player to another player. Thus, a strong argument could be made that a strong criminal element could use this to transfer large sums of illegally obtained cash into large sums of untraced cash.

[/ QUOTE ]

Thank you, this is now the bulk of my paper.

[ QUOTE ]
The reasons you mentioned above all seem like reasons to make it legal.
1)the inability to tax foreign companies would be solved by making it legal and taxing domestic companies.
2)The ease of minors is only made easier by unregulated foreign companies as well. Yes there is a small argument that can be made that even domestic companies will let some minors slip through it is nothing worse then Brick and Mortor casinos with ID's.
3)The first point you made about gambling being addicting is a rather solid point. (except for the fact that poker is entertainment to a lot of people and they dont lose much more then any other sporting event would cost. And the arguement that the govt. should not regulate peoples wills and aspirations....ok ill stop there haha.)
Other more legitmate reasons are:

money laundering-this is very hard to regualte as any given poker hand could be shipping money accross borders.
Well thats the only thing I could think of.

[/ QUOTE ]

As far as point 2, I completely agree: its really a joke that people pretend that this would be a problem if they spent anytime at all investigating a method to prevent it. I was doing some research and there was a study done about this (mainly relating to porn, I think) that showed that it would be quite easy to get rid of this problem. However, I need to write my paper on something, so this is one of my arguments.

As far as #1, if both foreign companies and U.S. companies are allowed to provide gambling services to U.S. citizens, why would anyone choose a U.S. provider? If the U.S. provider is taxed\regulated much harder than the foreign company, the foreign company is going to be able to provide (in theory) lower rake, better promotions, customer service, etc. Unless U.S. gambling was legal and foreign gambling was illegal..