Online gambling "could" be used to launder money, Let's review this...

[MiltonFriedman]

One of the arguments cropping up in the legislative discussions and Congressional replies posted in this forum is the proposition that "Online gambling could be used to launder money". The issue will NOT go away, and needs to be reviewed and discussed with lawmakers.

1. Online gambling has not BEEN used to launder money, at least the FBI has never claimed to have evidence of use.

2.Yes, the BetUS and BetOnSports criminal cases talk about "laundering money" in the sense that the money bet is bet surreptiously by the players. That is the players' own money and the parties to the betting transaction know what is going on. There is no "terrorist or drug money laundering" going on in such cases.

3. Money laundering, in the sense that poker players disguise transactions by exchanging funds on one US friendly-site for funds elsewhere, is a fact, the volume of which is unknown.

4. Basically, online gambling offers only a "potential" for laundering money, just like the restaurant industry, ebay auctions, paypal, and other entities. None of these other entities or businesses are outlawed because of a "potential" for criminal abuse.

4. For example, Rudy Guliani made his early mark in New York as a prosecutor of drug dealers using the widespread NY pizza industry to facilitate sales and distribution. Did anyone suggest that pizza restaurants be outlawed as a result ? (Would Rudi be a candidate for elected office today if he had done so after becoming Mayor ?)