The Case for Regulating Online Gambling

In new attempts to reverse the UIGEA law banning online gambling, the US is excited about the prospects of collecting taxes on the huge sums of money spent on online gambling. In addition, regulation could help reduce some of negative effects on consumers, says a new study by the University of Nevada, Las Vegas and the University of Western Ontario.

Understanding online casino gambling
The study, entitled "Blackjack in the Kitchen: Understanding Online Versus Casino Gambling," is due to be published in the February 2009 issue of the Journal of Consumer Research.

Kathryn LaTour, associate professor in the UNLV Harrah College of Hotel Administration, says that the integration of online gambling in the home can more easily "turn gambling behavior into a component of a consumer's everyday life, like watching television."

"When online gambling becomes a routine daily behavior, it is easier for consumers to engage in mindless consumption of that activity, ultimately resulting in addiction and resultant financial losses."

History lesson
When you ban it, it simply moves underground. Remember the ban on alcohol and the devastating days of prohibition in the US? The mob was practically nurtured in those days and is still with us today. Look at the results of banning drugs and what it costs the world in trying to keep it down.

The difference
Gambling in a real casino is a whole different ballgame. It is a social activity. First of all there are other people around and then there are dealers and croupiers who, like an astute barman, can tell a customer that he's had enough. If the customer insists, there is security who can force him to leave the casino. There is the cashier who can refuse to cash more checks or accept the credit card. These are built-in slow-down or stop features.

Online gambling, on the other hand, is a solitary activity. The gambler is involved in only one thing - gambling. A gambler sits by himself, grimly chasing after last week's or last month's losses, determined to win them back. If he 's addicted he will continue playing until all his money has gone and then he will resort to any means to raise more money to feed into his account.

Legality not a concern
Online gambling is currently illegal in the US. This is a joke. North American consumers can and do easily engage in online gambling via offshore Internet companies. Recent estimates of online gambling revenues range between ten and twelve billion dollars annually.

The conclusion
To best protect players, while not entirely ignoring the facts on the ground sort of speak, regulation seems the course to follow.

When played as a form of entertainment, online gambling can provide safe and harmless fun for many hours. I say we regulate!