With Implementation of UIGEA Regulations, the Government Upholds the Law of Unintended Consequences

The Kansas City Star queries on their gambling blog if the government actually made internet gambling more likely with the implementation of the Unlawful Internet Gambling and Enforcement Act (UIGEA).

I think that the trend to liberalizing online gambling laws is well in place and that just implementing some regulations won't do much to speed or slow the process. With the economy the way it is, politicians are going to "get religion" and figure anything that can generate more revenue without raising taxes is a good thing. However, I do think that the poorly drafted nature of the legislation coupled with the sleazy way it was passed did help cement the ultimate path of liberalization rather than prohibition.

The Global Gaming Expo trade show was in Las Vegas this week. I attended and saw a smaller show than last year. I definitely noticed a smaller crowd and noticed more than a few empty booth spaces, where exhibitors were scheduled to show, but didn't. A much more somber show than last year's. The press said attendance was down 7%, but to me it seemed a much larger decrease. Last year, lines were long and it was difficult to move from booth to booth. This year, you could move quite easily and not stand in very long lines for anything, if you had to stand in line at all.

At the show, the head of the American Gaming Association opined that legalization of internet gambling will be a hot topic in the next Congress (which will be controlled by Democrats). With a Democrat in the White House, legalization may come sooner rather than later.

If you remember, in the past year or so, several online gambling companies cut deals with the US Department of Justice and paid fines to cover activities before the passing of UIGEA. These companies had departed the US market with that bill becoming law. You know why? Because they want in when the US legalizes online gambling and don't want to be shut out. Those online gambling operators that still service US customers? I think they made a bad bet.

The table is set for the big brick and mortar US gambling firms to move with a passion if internet gambling is legalized, followed quickly by the publicly traded internet gambling firms overseas. A good thing for gamblers as you will be able to work with legit, above board operators. No need worrying about putting money in or getting your money out.

Sports gambling on the internet? Don't count on that portion being legalized soon, but who knows?