Why is online gambling in the U.S. under threat?
Why is online gambling in the U.S. under threat?
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Despite the fact that in many countries the legalization of online casinos today has not even begun, the United States in this sense until recently was a "safe" country. Although Internet gambling is not yet allowed everywhere, but the legalization of this segment for a couple of years has been successfully carried out on a "state-by-state" basis. And as many as five regions have already allowed it:
- Nevada,
- New Jersey,
- Pennsylvania,
- West Virginia,
- Michigan.
Even though legalization in many of these states was "fiddled with," overcoming many obstacles, local gambling operators were eventually licensed to offer their services not only in land-based establishments, but also on the Internet.
This led the supporters of legalization to think that now there is nothing to worry about: albeit slowly, the other 45 states will come to the idea of allowing online casinos in their territory. And at least this business will always remain legal wherever it is allowed.
But that's not the case. It has become known that in the U.S. Senate recently filed a bill that, if passed successfully, will not only suspend further legalization of online casinos, but may even "shut shop" in the states where they have been licensed.
Reasons for Online Gambling Ban in the USA
According to the official version offered by the Republican Senator Tom Cotton, who submitted the bill, the online casinos should be prohibited to save the population, especially the minors, from its corrupting influence.
Even as the bill is being considered, there are supposed to be 2 reports:
- From the Treasury Department: what kind of gambling exists in the U.S. today, how legal it is. And most importantly: How payments are credited to the accounts of gambling sites.
- From the Federal Trade Commission. It must analyze the gambling advertisements and make its own decision: how much of this advertising complies with the policy to protect minors from gambling.
Simply put, Cotton believes there are a lot of casino ads in the online segment. Many of them don't shy away from using cartoon characters in their videos, which inevitably attracts children. That is why their activities should be taken under control. Or better yet, they should be banned.
This is roughly what is happening in Georgia today.
Besides, all the events going on contradict the current UIGEA (Unlawful Internet Gambling Enforcement Act) law in the USA, which was adopted on the federal level in September 2006.
What is the UIGEA?
It would seem that everything is clear from the name. However, this law does not prohibit the issuance of online casino licenses, nor does it require that players or game organizers be hauled off to jail. All it restricts is bank transfers to such establishments. In fact, the UIGEA doesn't target casinos at all, but financial institutions by regulating their operations.
Approximately the same way they tried to limit the development of cryptocurrency exchanges in India. It is supposed that if some exchanges won't be able to get money from citizens, they will simply "die of their own death", so there will be no need to drag anyone to jail.
Thus, the sense of the new initiative is to pay more attention to the work of online casinos and identify violations committed by operators in terms of content and advertising. And at the same time to check the work of the banks.
Who really benefits from the ban online casinos
At first glance, everything is more than logical and decent: the senator cares about the moral health of American children and therefore makes efforts to protect them from gambling.
But this situation can appear in a very different light if you consider a few additional nuances:
- The notorious Tom Cotton is a Republican.
- Just like the owner of the Las Vegas Sands land-based casino corporation, billionaire Sheldon Adelson.
- Who, by the way, spared no expense in supporting his Republican brother Donald Trump's presidential campaign.
The latter was not indebted: when in February 2017 (immediately after the election of the American president) Japanese Prime Minister Shinzo Abe came to the United States, Trump urged him to allow Las Vegas Sands to build gambling facilities in Japan.
In general, the issue of legalizing online gambling in the U.S. cannot be considered without taking into account local political realities. And they are quite simple:
- The Democratic Party is in favor of legalization. It believes that every American should have the right to decide for himself whether to play or not.
- The Republican Party is against it. It actively uses the moral aspect to justify its positions, but, as we can see, the material aspect is not alien to it either.
After all, the massive opening of online casinos all over the country could deal a heavy blow to Mr. Adelson's fat pocket. Who, by the way, even created the "Stop Online Gambling" coalition and spares no expense to fund it.
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