iGambling Legislation a Counter to Black Marketeers

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Monday, March 27th, 2017 | Written by Shane Larson

In 2013, online gambling was legalized in the US states of Delaware, New Jersey and Nevada, and these markets have continued to be the country’s only legal iGaming jurisdictions ever since. In the meantime, California, Massachusetts, Michigan, New York, Pennsylvania, West Virginia and New Hampshire are currently in some phase of discussion over legalizing and regulating the industry, although even some of the more optimistic advocates of online gambling now feel jaded following countless examples of legislative near-misses over the past few years.

A Familiar Story

With the exception of West Virginia, which only began considering legislation this March, the states currently mulling over online gambling have been at it for some time. During the long, drawn out process, states typically follow a familiar pattern. First, there is an intense debate over the pros and cons of legalization, with opponents warning about problem gambling. Next, proponents point out the potential for tax revenue, and if there is enough support to move forward, lawmakers will haggle over the tax rate, while casino operators in the state speak up, wanting to have a say in any new law. Finally, a bill may pass through the committee stage, and be voted upon by the State Legislature, but ultimately fail to be approved by either one or both houses.

iGaming Sites Still Active Across USA

When discussions about legalizing online gambling arise, lawmakers often talk about online casinos and poker sites as a new thing. They act as if regulating the industry will mean that players will be accessing online poker and casino sites for the very first time, in the process opening the doors to numerous societal ills.

The problem with that logic is that it fails to take into account the true reality of the situation which is that people have already found ways in which to take to the virtual tables. Case in point, while its true that online gambling may be illegal in all but three states, statistics show that numerous poker sites have thousands of players from the USA visiting on a daily basis. Furthermore, the banning of online poker sites that occurred in 2011 on Black Friday may have made access to online gambling websites more difficult, but playing on these sites is not impossible, with players undeterred by law enforcement which refrains from doing anything to those people who do choose to gamble online.

Thriving Black Market

Unfortunately, without regulations in place, people who are gambling online are completely unprotected, and may face any number of possible financial dangers. For example, online operators who are acting as black market sites may not have security measures in place to protect players’ credit card information, or they may not put players’ money in escrow accounts, and manage their funds wisely. Furthermore, such sites may not take steps to identify and prevent underage players from accessing their virtual tables and slots, and conceivably might even turn a blind eye to obvious cases of money laundering.

Regulation the Solution

Only through regulation can consumer interests and the interests of states truly be protected. In other words, it doesn’t make sites accessible to players for the first time, but it does provide access to safe sites for thousands of people who are already finding ways to gamble online. In fact, states that take steps to legalize online gambling are actually acting in the best interests of their residents, as well as making it possible for social programs and government departments to receive funding from taxing gross gaming revenues.

Even with this argument presented before them, some lawmakers may still object to gambling due to moral reasons, but in any case, governments shouldn’t be in the business of legislating morality. Plus, many states where lawmakers oppose online gambling on a moral basis already allow for some type of gambling whether it’s lottery, racetracks or casinos. Therefore, it is high time for states to take a realistic and fresh look at the online gambling industry, and realize that the only people truly protected by bans on online gaming are the unscrupulous operators themselves.