Tuesday, July 15, 2008

University Study Recommends Legalizing Online Gambling

A Reuters article discusses a new research study jointly conducted by the University of Western Ontario and the University of Nevada Las Vegas. In the study, the researchers provide the breathaking finding that even though that internet gambling is predominantly illegal in the US and Canada, it is "readily accessible." (Wow, that's a newsflash)

The key take away is what's discussed later. The study recommends that governments encourage large corporations "like those that run the major Las Vegas casinos" enter the online gambling market. That is the news here. You see, it's all part of the dance.

The US Government and the big casino operators want in on the online gambling business (i.e. $$$$). Since the major operators were outside the US, the IRS wasn't getting any cash (i.e. $$$$). So, they outlaw "bad" internet gambling. But to get that cash, they just can't turn around and legalize it. You first have politicians seek to have a "study" to see if online gambling can be regulated. There's a bill in Congress to do just that. You also add a university study that recommends legalizing the industry and the stage is about set.

If Congress does pass a bill to study online gambling, what do you think the results will be? My guess is that the results will be something like, "if properly regulated, online gambling can be conducted safely, minimizing risk of problem gambling and underage gambling, etc." Now, the government line is that you can't do this safely, but if a "study" says so, then I guess that makes all the difference.

Then having online gambling illegal is just a ploy to clear the decks of offshore (i.e. non-$$$$ paying) competitors before the gambling big boys come to play. All companies that ran afoul of the Unlawful Internet Gambling and Enforcement Act (UIGEA) won't be able to play unless they pay big bucks to the US Government (i.e. $$$$). Do you wonder why Party Gaming is rumored to be in negotiations with the US Government with regard to liability for internet gambling before UIGEA passed (i.e. $$$$)?

The trend is clear. The move is afoot to "study" internet gambling. The big brick-and-mortar casino companies are just waiting and the big-name internet gambling companies that pulled out of the US after UIGEA passed will reach agreements with the US Government (i.e. $$$$) so they can play too.

Won't happen overnight, but watch for Congress to pass a bill authorizing a "study" next year. Don't be surprised if internet gambling becomes legalized in the US in the next few years.

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