The Future of Online Casinos in the States

Posted 16 February 2009 in Latest News

Internet Gambling in the United States: Still Questionable and Uncertain with Regard to Its Future

Even after the term of President Bush in the United States and all the laws that he made with regard to internet gambling, it still seems like the operation of online casinos in the United States is still questionable. This is according to a Nevada regulator who issued this statement last January 10, 2009. Gaming Control Board chairman Dennis Neilander stated that in order for online casinos to flourish, they need to have some form of court or Congress clarification with regard to the laws issued on playing casinos on the internet.

Former president Bush issued the November ruling regarding the fate of online casinos. This rule stated that the Treasury Department and Federal Reserve will create procedures for financial companies that will avoid receiving any kind of payment coming from internet gambling. It does not matter whether the money came from a game of online roulette or online blackjack; as long as it is gambling money, it is not going to be accepted. However, Rep. Barney Frank from the House Financial Services Committee is working on scraping the 2006 law, which is the primary basis for the November rule.

What is immensely flawed in the 2006 law governing internet gambling is that there is no clear definition of “unlawful internet gambling” provided by the government. Because of this, there have been many complaints coming from financial companies and banks about the guidelines that this law should have set with regard to online casino gambling. The only thing that was stated there was that the government is “prohibiting financial institutions from accepting payments from credit cards, checks, or electronic fund transfers to settle online wagers.”

Perhaps the main reason why these casino laws have been criticized is because they were written and passed in a haphazard way. It should be noted, however, that the United States roughly earns about $16 billion annually just from online gambling revenue alone, and half of that amount is allotted for the gaming industry each year.

What President Obama has to say about this issue still remains unknown, since there are a lot of other things that occupy him right now. The only thing that we can do is to wait and see whether UIGEA will be scrapped or rephrased into something that has clearer definitions and guidelines.