When online casinos first hit the market, there were no regulations. Players could place wagers at sports betting sites or play poker at an online casino. Since that time the laws relating to internet gambling have become much more stringent. So much that many international casinos have chosen not to allow U.S. gamers due to the complications.
Where are these Casinos?
Most online gaming sites are located outside of the U.S. This means that the owners avoid any type of legal prosecution from the U.S. Government. Ironically there are several states that allow land-based casino properties within their boundaries, but stringently oppose internet gaming. For the most part many of these international casinos allowing U.S. players are based out of the Caribbean, Costa Rica and Europe. These areas allow regulate all types of gambling.
Why is there a Strong Opposition?
Internet gambling makes it difficult to track the flow of money. Therefore the Government would have a tough time collecting taxes. Neteller is an online bank that used to be the primary method of monetary exchange between the players and the casino. The players used to be able to acquire a Neteller debit card which would allow them to withdraw money directly from their Neteller account, completely bypassing U.S. banks and hiding money. This operation was eventually shut down.
The Government also mentions the point of allowing games of chance to be played by anyone with a computer, including children. Although online gaming sites cost significantly less to create than a land-based operation, they also employ significantly less workers, potentially resulting in a loss of the workforce.
The Catch-22
click here to see most Popular PagesU.S. law dictates that owning an online casino without a license is illegal. In order to get a license you must apply through a state agency. Unfortunately there are no states granting online gaming licenses. The consequence of being caught gambling online also vary between states.
International Issues
Since internet gambling is such a huge money-maker, the Government of Antigua and Barbuda complained to the World Trade Organization regarding U.S. action to forbid online casinos. Since a good portion of their market is in the U.S. they were losing money. Initially they won the case, but it was later partially reversed.
Although land-based casinos are legal in certain areas of the United States, online are not. Regulations continue to become more rigorous as time goes on. Although there are still millions of Americans that continue to place bets and engage in games of chance online, the Government is watching and will eventually crack down.
