What Online Gambling Ban?

Online Sports BettingWhat Online Gambling Ban?

Just a few days removed from the events that resulted in federal implementation of the 2006 Unlawful Internet Gambling Enforcement Act and the industry has already begun to see signs that the predicted chaos and confusion within the various circles contained within and connected to online gambling that happened a few days ago when most analysts decried the new regulations as being nothing more than blatant pandering on the part of federal officials to their social conservative base. That part of the issue at least seems to have gone on as planned as people such as gambling research analyst Chad Hills at Focus on the Family have called the implementation of the new federal procedures “a huge victory for families.”

While the Chad Hills of the world and their social conservative groups may feel good about themselves for having the legislation implemented, the fact of the matter is that the new regulations do absolutely nothing to protect families from predatory online gambling institutions. In fact, it can quite easily be said that the new regulations might not do anything at all. The single new regulation that was put into place by the Treasury Department is that banks that have customers opening new accounts with them of any kind now have to sign a list of terms and conditions that includes the new condition that they do not participate in any kind of online gambling and will not do so through the account they just opened.

As for people that already have bank accounts that fund their online gambling activities, the Treasury Department is not going to do a single thing to prevent them from transferring those funds and will once again leave things up to the discretion of the financial institutions in question. In practical terms this is going to happen even in the new case as the rule only calls for a declaration as opposed to enforcement of the actual law with penalties for transgression. As far as many gambling analysts can tell, the banks and financial institutions involve are on the honour system as to whether or not they are going to pursue the federal legislation. The honour system tends not to work well with free market enterprise and for that reason it seems as though things are going to be business as usual in the United States vis-à-vis online gambling.

Take the situation as it exists with the social conservative agenda and contrast it with what would happen if online gambling institutions were regulated and then allowed to operate freely within the United States. The tax revenue from the new industry would add hundreds of millions and maybe even billions of dollars to the various governments within the country whereas the new regulated rules that the government would impose would allow for enforcement of age limitations and loss limitations that would protect the family against predatory online gambling. None of these things happen with the current policy in place and it is just one more indication of how online gambling policy written for the social conservatives may make them feel good about themselves, but it ultimately does nothing of practical importance to address the issue.

July 2, 2011 by : posted in Gambling and Legality No Comments