California favors online gambling

Posted by siteadmin | January 31, 2011 | Posted in: online gambling | Comments Off

Former New Jersey Assistant Attorney General and Director of Gaming Enforcement, Frank Catania and other online gaming industry experts clarified to California State legislators why prohibiting online gambling is not a very wise move and why it rather should be regulated.

Among many reasons why online gambling should not be prohibited, Catania pointed out that it is simply impossible to do so, as online gaming cannot be stopped. He tried to convince legislators that regardless of any measures they are going to undertake, online gambling will simply continue, even under the Unlawful Internet Enforcement Act.

As a matter of fact, U.S. gambling industry (sports and casino betting, poker) is growing every month, in spite of the passing of the UIGEA. The estimated value of this business is now $20billion in the U.S. What is worrying, not only will the government have to pay money to Antigua and Barbuda, WTO member country, as compensation for lost online gambling revenue, but it will not be able to collect federal tax revenue.

The American Bankers Association expressed its objection to the UIGEA. Ted Teruo Kitada, senior company counsel for Wells Fargo stated that under the UIGEA the U.S. banking system is forced to identify online gambling transactions, which is not actually possible to achieve. It is so partly because of UIGEA fails to specify which gambling transactions are, and which are not, illegal. According to Kitada, Wells Fargo is unable to carry out such a difficult task, as it carries out millions of transactions every day.

Even if there are good intentions behind the bill, implementing an online gambling prohibition is just not possible. And in California, where Poker Players Alliance Director, John Pappas, said there are over 100,000 online poker players, regulating online gambling on a State level, is the soundest solution. Just like in land based casino gambling, proper regulation s is now being done in the UK will keep crime out and underage or problem gambling monitored and curbed.

Even assuming that there were good intentions behind passing the UIGEA, which is very doubtful, prohibition of online gaming simply cannot be achieved. John Papas, Poker Players Alliance Director, said there are more than 100,000 online poker players. He concluded that regulating online gambling within the state would be a reasonable solution. Proper regulation should prevent crime as well as underage gambling – this system works well in the UK.

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