Who Should Regulate Internet Gambling in the U.S.?
Tuesday, August 4th, 2009
As most of the world has come to embrace the regulation of online gambling, the United Sates remains firm in its disapproval of the industry and support of the UIGEA, which went into effect in 2006. The fact that this legislation is hard to make sense of and defend has many observers believing that it will only be matter of time before online gambling is legalized and regulated in the U.S. in some form or another. If this were to happen, it would immediately present the question of just who would be in charge of regulating internet gambling: individuals states or the federal government? Until now, it has been accepted that regulation remains the responsibility of the states under the Tenth Amendment of the United States Constitution, which covers States’ Rights. While the federal government’s regulation of gambling has been limited to Indian land-based casinos, it has played a role in prosecuting internet gambling offenders of various federal criminal codes.
Can it Be Done?
All the comparisons may be futile because internet gambling is an entirely different animal than its land-based counterpart. Until recently, anyone who wanted to gamble was forced to physically travel to a casino facility. Thanks to the rapid development of technology and the fast growing popularity of the internet, gambling has essentially become an activity with no borders or physical constraints. These days, all the player needs is a computer with an internet connection and they can try their luck with poker and many other types of casino games. Being that the internet is viewed as a medium with little to no rules, it is fair to ask: can the local government really keep wraps on the online gambling industry?
A Probable Resolution
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Perhaps the best approach is that instead of having online gambling being regulated entirely by the state or federal government, it is better to resolve the matter by permitting each body to simply continue to do what they do best. Already experienced in regulating gambling activities to some degree, individual states could be allowed to regulate the internet version to the extent they decide to incorporate into to the legalization and regulatory processes. Because big money is involved, the federal government could be responsible for regulating payment processors and financial institutions. Sure, it may sound like a long shot now, but if alcohol got through the prohibition and marijuana is now being embraced as a medical solution, can’t the online gambling industry get a fair trial? After all, it is pretty much a known fact that the United States stands to reap billions in tax revenues from the booming online gambling industry.
We could be living on a dream, but if everyone with something to say about the United State’s online gambling structure, federal and state officials, land-based casinos and leading software developers included, would just sit down and rationally discuss these issues, there is a great chance that a beneficial resolution could be reached. Unfortunately, as long as the issue continues to be viewed as a misunderstood threat to American society in which only one side can win, it is very likely that a viable resolution will not be found any time soon.
