There is still much doubt about what to do with Internet gambling. Senate lawmakers consider placing it under a ban again. Yet, according to some experts, this is not a solution to the problem. They should rather think about regulating the $4bn (£2.55bn) industry. In other words, experts are trying to underline that lawmakers should focus on making necessary changes conserning Internet gambling rather than prohibit it.
As stated by top lawmakers on the Senate Banking and Finance Committee, they supported a bill which requires credit-card companies and payment services such as PayPal to block transfers to Internet gambling sites. A House of Representatives approved a similar bill last week.
Alabama Republican Senator Richard Shelby said that “ This legislation represents a measure and appropriate response to a demonstrated social evil that grows worse every day.” The bill was also supported by Maryland Senator Paul Sarbanes, the committee’s top Democrat.
Gambling industry is constantly monitored by Christiansen Capital Advisors. It is estimated that online gambling sites will take roughly $4bn this year, with half of this from US residents. According to shelby and other critics online gambling sites break the rules and ignore local regulations and provide access to children and adults fighting with gambling addiction.
The question is: what would change, if Internet Gambling was banned immediately?
It’s impossible to control its impact from a simple reason- nearly all of the industry’s 1,800 Web sites are based offshore.
Lawmakers are trying to prevent gamblers from paying their debts. Therefore, many credit-card issuers have voluntarily blocked gambling transactions. According to Richard Fisher, an industry consultant, card companies now block roughly four out of five online gambling payments.
One former state regulator doesn’t believe it will solve the problem. It will rather encourage gamblers to search for other forms of payment which can not be blocked as easily. Instead, government should take the same direction as United Kingdom and regulate the industry, said Frank Catania, a former director of the New Jersey Division of Gaming Enforcement. He also added:
“It’s my hope that members of this committee will recognise that legislation and strict regulation, rather than prohibition, could achieve important policy goals.”
A bill introduced last week in the House would choose a commission to find the best way of regulating the industry. Congress has tried to ban Internet gambling for years, yet no bill has passed both chambers due to procedural issues and infighting among casinos, dog tracks and horse tracks.