Tensions are rising in Washington, where politicians are meeting today to discuss the Restoration of America's Wire Act and with it the prospect of a national ban covering most elements of online gambling.
Washington insiders suggest that a subcommittee of the House Judiciary Committee has chosen to hold a hearing for the Restoration of America’s Wire Act (RAWA) today (Wednesday 25 March 2015).
Restoration of America’s Wire Act (RAWA): Federal Online Gambling Ban
To summarise, RAWA is legislation designed to ban elements of online gambling across the US at a federal level. That would effectively overrule the Tenth Amendment, which dictates that national control is determined by the powers approved by individual states.
RAWA has featured prominently in recent US political headlines, as well as media coverage outside the US, because of the alleged tampering undertaken by global gambling magnate Sheldon Adelson. However, we need to set the tampering allegation aside for a moment to consider the damaging ramifications if RAWA is approved and ratified.
Thousands of Jobs Under Threat
New Jersey, Nevada, and Delaware decided to legalise online gambling as a means of stimulating their struggling economies by decreasing unemployment and raising millions of dollars in tax revenue.
Approval for RAWA would mean that thousands of people would lose their jobs. Simultaneously, the states would be millions of dollars worse off and less able to cope with a sudden increase in unemployment.
Online gambling legislation in those states often requires that key staff members and regulatory personal work within them. That thereby minimises the possibility of foreign employees taking jobs from people can be just as effective in the US.
US Online Gambling: Outlook Uncertain
Land-based casino popularity is declining in key locations like Atlantic City, where 7,000 jobs were lost in 2014. Surely the government realises that New Jersey will be under even greater economic pressure with the loss of thousands more jobs.
Fundamentally, RAWA is a flawed piece of legislation. Opposing politicians were easily able to see that horse racing and fantasy sports – both of which are offered by Sheldon Adelson – are protected. RAWA appears to be about industry control rather than what is best for the country.
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