[Vidocq]

I agree with much of what has been said above. In an ideal world, there would be the "US Online Gaming Commission" -- a federal agency. The agency would:

* Charge sites a heafty annual license fee to cover the costs of the Commission.

* Have reasonable licensing requirements for operators, perhaps modeled on existing state gaming commission requirements.

* Have the ability to inspect the books and records of licensed companies.

The regulated sites would be required to:

* Keep all customer funds in a segregated account, i.e., not use them for operating purposes.

* Provide an annual W2G or other tax document to players, which the players would use for filing taxes.

* Pay taxes in the US.

* Have verifiably random dealing procedures.

* Comply with AML laws and OFAC regulations.

Another thing the Commission could do would be to have the power to combat cheating by players -- collusion, bots, etc.

Of course, it is extremely unlikely that any of this will ever happen. There is no real precedent for this type of federal regulation of a leisure time or sporting activity. There has, from time to time, been talk of a federal boxing regulator (something that is probably a good idea) but it has never gotten off the ground.