Ongoing Issues and Debate with Legislation for the Legalization of online Gambling

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The legality of online gambling remains in flux particularly without the passage of a comprehensive federal law. The absence of appropriate federal oversight and regulation is necessary for a market that is projected to reach $3.5 billion by 2017 according to Morgan Stanley (Kredell, 2014). Allowing a patchwork of code and legislation driven by individual states is not practical for a billion dollar industry. This inconsistency in policy would make it ripe for abuse whether that integrity of the games, fraud or money laundering. Ambiguity reigns as there are differences in the legality of making bets, taking bets, facilitating payments to casinos and even advertising on websites. A report from industry expert RubinBrown states, “The prospect of legalized Internet gaming on a federal level remains uncertain as the technology, player safety and the ability to regulate the industry on a national level continue to raise concerns.” (RubinBrown, 2014)

The U.S. will need to model policy on regulatory regimes in Europe and Canada where online gambling has been effectively monitored for almost a decade. The principal requirement will be ensuring the integrity of the games which will require the licensing and oversight of only trustworthy operators. Other key areas that require attention would include customer identification (particularly to exclude underage gamblers), system testing and auditing, controlling player collusion, and effective anti-money laundering programs.

Online gambling is a worldwide industry and already permeates most of the U.S.

It is an increasingly legal and regulated activity, particularly in Western European nations, that generates almost $35 billion of revenue a year (RubinBrown, 2014) but the U.S. remains a laggard. However, it is possible to create a tightly regulated online gaming industry that protects consumers, grows jobs and generates meaningful new tax revenues (Stewart, 2014) particularly if legislators follow the critical basic lessons followed in Europe.

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