The State of Gambling in the U.S. and Elsewhere

The United States used to be the biggest and most lucrative market for the online casino industry until October 2006, when the Unlawful Internet Gambling Enforcement Act was passed.  This piece of legislation made it illegal for financial companies to process financial transactions between gambling companies and U.S. players.  The Netherlands is also considering similar legislation.

The United Kingdom chose the route of legalizing forms of online gambling and regulating and taxing the activities.  Other European nations are somewhere in between, many with state gambling monopolies that are not consistent with EU law.

What are some of the problems involved in online gambling?  Many say security and honesty but these problems are done away with when the sites are regulated or licensed as in the UK.  Players benefit from legalized gambling because they can enjoy themselves and win money.  The gambling sites benefit because they make money.  Government also benefits from the tax money generated.

The United States does its best to prevent online casinos and sports betting but they cannot censure the internet.  The casino operators that allow U.S. players don’t have too much to worry about as long as they don’t visit the United States.  Right now it doesn’t look like the U.S. will legalize online casinos and there are some European countries that seem to be heading in the same direction.

Posted: July 6, 2008

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