(Newswire.net — September 21, 2015) — Ever since the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in 2006, it has been illegal for the country’s banks and credit card companies to process financial transactions for gambling sites. Although this caused several international operators to withdraw from the US market, millions of Americans continue to gamble online to the tune of $4 billion every year.
Unfortunately, due to current legislation, a lot of this money goes to gaming companies that have been forced to trade offshore. But if Congress were to change its stance, the USA’s growing economy could receive a timely boost. However, several obstacles still stand in the way.
How online gaming could boost the economy
Did you know that if online poker were legalised in the USA, it would create an estimated 10,000 high-tech jobs and generate $2 billion of tax revenue every year for state and federal governments? In turn, this would preserve critical public services in a time of increasing budgetary constraints. It’s an attractive prospect that lawmakers must mull over.
The data comes from the American Gaming Association’s white paper “Online Gambling Five Years After UIGEA.” This document goes on to add that Americans like to gamble online and have repeatedly done so regardless of Government direction.
But as it stands, current policy on internet gambling means that foreign nations and businesses are reaping the rich rewards that this industry can bring, which includes more jobs, greater economic opportunities, and higher tax revenues.
Overcoming the challenges associated with online gaming
Despite the fact that the online gaming industry faces opposition in its bid to become a legal and lawful contributor to the US economy, the American Gaming Association believes that well-designed regulation can alleviate social concerns.
The same white paper says: “Based on years of experience with regulated online gambling in the horse racing and lottery sectors in this country, and with legalisation in some Canadian provinces and in Europe, we know that a strict regulatory system can ensure that online games are fair to players, exclude minors, provide tools that allow customers to limit their gambling, or self-exclude entirely from online gambling, exclude bets from jurisdictions where online gambling is illegal, and prevent the use of online betting sites for money laundering or other illegal purposes.”
Furthermore, it also states that even if online gaming is not legalised and regulated, the country’s population could continue to gamble at websites that are based in jurisdictions with little to no consumer protection.
Making a case for online gaming
In markets where online gaming is legal such as the United Kingdom, sports betting tends to generate the most amount of money. If the USA were to adopt a similar policy, the country could potentially produce $12.4 billion in annual revenue.
Therefore, the advantages of developing a legal market, where bets can be placed in online casinos or at retail bookmaking shops, is not just limited to traditional forms of gambling.
Again, it is predicted that American citizens will bet on sports regardless of whether its illegal or not, with $95 million set to be put on NFL and college football alone this season. So rather than cracking down on this activity, perhaps the US government should adopt the approach of other similar nations that are capitalising on the economic benefits of online gaming? There are certainly lessons to be learned from abroad.