Opponents, Proponents Gearing For Online Gambling Battle

Gambling News - February 8th, 2010 - Written By Glen

Online gambling legislation is reaching critical mass, with the likelihood of a committee meeting on the issue over the next few weeks. While legalized online gambling is likely to take months, if not years, to regulate, warriors on both sides of the battle are gearing up to the task.

The proponents of online gambling, those who have been in the battle since the beginning, include the Poker Player's Alliance, a lobbying group, Barney Frank, Democratic Representative of Massachusetts, and Jim McDermott, a Democratic Representative of Washington. These three factions have formed an alliance in order to push online gambling into regulation.

Online Gambling, a billion dollar industry, has been increasing in popularity over the years. Tax revenue of up to $42 billion dollars could be collected over ten years, brought in with a low collection percentage of 2%.

Using legislation from 1961, the Wire Act, the Justice Department had been persecuting online gambling. This legislation, passed before the Internet had even been created, has been a thorn in the side of selective gambling centers and payment processors. The Unlawful Internet Gambling Enforcement Act, what will replace the Wire Act in removing the grey area from online gambling, has been delayed, giving legislators more time to act against this draconian legislation.

The UIGEA has been challenged by the World Trade Organization, civil rights groups, the gambling operators and the players.

The UIGEA is being defended by such players as the major sports leagues in the United States, religious groups, and even some of the casino operators. Using the classic reasons behind keeping gambling illegal, such as increased criminal activity, corruption in sports, and other similar attacks on the industry, these groups have been fighting to keep online gambling illegal.

The proponent's responses? Sports gambling will remain illegal, criminal activity, such as robberies and gambling supplied by organized crime, will be nonexistent, and underage gamblers will be protected through extensive identification checks.

With time running down until next committee hearing, each side is beginning to push their agenda. Though opponents are pushing hard against regulation, the point tally is currently leaning in favor of the democratically controlled liberal government, as well as the general air of gambling expansion in the states.