US Gaming Group Demands Study of Online Gambling

Representatives for U.S. casino owners called for Congress to perform a study to determine whether Internet gambling could be regulated. The trade group, on April 27, 2006, requested this study to determine is legislation create legal online gaming could be established.

The American Gaming Association (AGA), previously opposed to Internet gaming, has realized the huge economic potential provided by this industry. Efforts in the past have been in support of curbing illegal online gaming, but apparently the AGA has decided that "if you can't beat them, join them".

Estimates state that as much as $11.9 billion in revenue was generated in 2005 through online gaming. The online casinos have been operated by offshore companies, causing the U.S. and other economies to miss tapping into this huge financial resource.

The newly-modified position held by the AGA was established as a result of a board of directors' meeting on April 26 where it was determined that a year-long study of online gambling conducted by a commission reporting directly to the U.S. Congress should be used to guide the formation of legislation to regulate Internet-based casino gambling.

Not only are the casino owners losing a huge revenue source, but the government is losing a huge tax base. The AGA recommendation states that the commission should be directed to evaluate legalization, regulation and taxation as an option each state could choose to legalize or not. It has been clear for some time that a ban on online gaming is not viable as an option. It was noted that the study should include ways to prevent under-age gambling and protection for problem gamblers.

In response, shares in British online casinos rose as much as four percent, indicating support of the AGA's new stance. There is a Republican bill that would ban gambling businesses from accepting credit cards, virtually preventing Americans from participating in Internet-based gambling on any U.S. websites. A ban on interstate gambling through the use of the World Wide Web and other technology is also on the docket. Support for these currently pending legislations that would crack down on illegal online gaming appears to be waning.