US Online Gambling Legalization Gathers Pace

The legalization of online gambling is continuing to be debated at government level. Last week the House Financial Services Committee approved a bill that would commence the process of regulating and licensing non sports online betting operators. Sitting alongside this bill is a debate by the House Ways and Means Committee that would allow online betting winnings to be taxed by the Internal Revenue Service.

With US winnings estimated at $42 billion over ten years, the potential for government revenue is huge.

The Moral Debate

However, as the legislative discussions continue so does the moral debate. Friday's New York Times article, headed, "Should Internet Gambling be Legalized?" including opinion pieces from eight different contributors.

Robert Hahn,co-founder of a web portal on regulatory policy states: "I'm inclined to permit Internet gambling. The additional social costs do not appear to be that high - US citizens already have easy (too easy) access to gambling, both legal and illegal."

Earl L. Grinols, a professor of economics at Baylor University states: "What we have learned is that the social costs of gambling outweigh the benefits by a factor of about 3 to 1... This is why Congress should not now, and perhaps not ever, legalize Internet gambling."

The Public View

Readers commented on the NYTimes article from different perspectives. Mike from Princeton, NJ represented many views when he wrote: "It is not the government's job to tell me how to spend my money... why not legalize and tax gambling, since it is going on anyway?" There were many calls for the government to "acknowledge reality."

On the other side of the coin, posts included anti-legalization views including Peter Wanger from Bloomfield, Michigan who said: "One of the duties of Congress is to protect the general welfare of the people of the United States."

And so the debate rages on but, like it or lump it, momentum does appear to be mounting. With the legislative bill up for discussion and the scale of existing online casinos known to many, perhaps the banter will soon change from 'if' and 'why' to 'how' and 'when'.