Gambling Legalization Essay - 2,801 words

Gambling Legalization The legalization of gambling has become one of the most heated social issues that Americans have to face
nowadays, and it has triggered a lot of controversial responses from various circles. While some people claim that legalizing
gambling is the only way to control this growing industry and receive money from it, others truly believe that it is unethical and
inefficient to legalize gambling. The introduction of online gambling has contributed to the debate significantly, since there is virtually
no way to control it. Within the conceptual framework of this research, we will discuss various perspectives on gambling legalization,
emphasizing online gambling, since it has become a more important issue than traditional gambling nowadays. Gambling over the
Internet can be performed in most traditional manners. Virtual casinos and sports books, however, continue to lead the online
gambling industry.

A typical on-line gambling experience is as quick and easy as turning on your computer and going to your favorite gambling Web
site. Gamblers first click on a link that takes them to an account-opening page where they can access their account and/or deposit
more money. Once the account is opened, funds can be deposited by using a credit card, certified check, money order, or through a
wire transfer. When the account has funds, gamblers are ready to play. If they win, the amount of the bet will automatically be
credited in their account. If, however, they lose, the loss will be deducted from their account. While Internet gambling popularity
continues to grow, so do the concerns surrounding the business.

Questions concerning the legality, potential dangers and moral issues have made this industry a controversial topic. In this paper I
will first briefly examine the social/political concerns about online gambling. I will then discuss the two main legal approaches that US
could take in dealing with online gambling and the issues involved in these approaches. As Internet gambling rises in popularity,
concern over its potential effects have grown as well. While traditional forms of gambling have been subject to much criticism, online
gambling has raised its own specific concerns. Four of these are fraud, gambling by minors, increased addiction, lost state revenue.
Fraud: The inherent nature of online gambling leads to questions of how gambling on the Web can be properly investigated to
prevent the potential for fraud. Without regulation, online gamblers have no way of being sure whether the games are operated
fairly. There's just no way to tell if virtual dice, roulette or cards are rolled, spun or dealt randomlyor whether they're responding to a
sequenceto cheat customers.

(Eadington, p. 180) Other opportunities for fraud on gambling sites include abuse of credit card information and failing to pay out any
winnings the bettor may accumulate. A typical online casino requires the user to submit credit card information before participating
in any of the games. Once this information is transferred it is in the hands of the online company and subject to potential abuse.
Furthermore, the payment of winnings has been subject to fraud in the past. When too many gamblers win, online operators have
simply shut down their web sites, without paying off the winnings, and moved to a new online gambling site. With the difficulties in
identifying and locating site operators, gamblers may be left with no recourse. Minors: Whether or not one supports legalized
gambling as an acceptable form of entertainment for adults, it is unlikely that anyone could make the same argument for children.
Thus a second major concern associated with online gambling involves its availability to minors. Obviously, it is easier for a minor to
access online gambling websites than other avenues of gambling.

This accessibility is due to the growth of Internet access in homes and the anonymity of Internet users. Arguably, many times it is
virtually impossible for online operators of gambling sites to determine the age of the user. With unlimited potential for minors to
access these online gambling sites, opponents of this industry argue that the only way to keep children away is to prohibit these sites
to everyone. Addiction: Gambling addiction is another major concern that arises in the context of Internet gambling. Gambling
addiction has always been a concern; however, opponents of online gambling argue that legalized online gambling will lead to an even
greater increase in gambling addictions. Unlike traditional casinos where gamblers use real chips or money, online gamblers place
bets with the click of the mouse where there is no tangible representation of money: Video gambling, because of its instant feedback
mechanism, is known to addict gamblers faster than other forms of gambling; hence, sociologists and psychiatrists widely refer to it
as the crack-cocaine of gambling addiction. Another reason for the potential of increased gambling addictions is attributable to the
ease of access to the activity. (Reith, p. 160) Traditional casino gambling requires a gambler to visit the casino's location where most
have limited hours of operation.

With the increase of Internet gambling, gamblers can now stay in their own homes and immediately place their bets 24 hours a day,
seven days a week. It has also been argued that compulsive gambling is more frequent when the player is anonymous. It is
suggested that gamblers who have lost an incredible amount of money are more likely to keep betting on their computers than if they
were sitting at a table with others watching. Loss of Revenue: In the United States another concern about Internet gambling is loss
of tax revenue. Americans are required to pay taxes on lottery winnings and one argument raised in favor of prohibiting online
gambling is the need to protect state revenues generated by legal and state-run gambling operations (i.e., state lotteries). Internet
gambling offers users the ability to avoid paying taxes on winnings because of the difficulty in tracking online gambling winnings.

Many traditional casinos have expressly voiced their concerns over Internet gambling arguing that this loss of revenue would
significantly reduce the legal gambling industry. The reduction, arguably, would mean a loss of jobs and provincial funding generated
from these revenues. Many jurisdictions have been struggling with the implications of Internet gambling and how they should react
to it. There are no simple or obvious solutions to the question of what should be done as is evidenced by the wide range of
approaches around the world. A number of small jurisdictions such as those in the Caribbean have embraced the opportunities and
have specifically granted Internet gambling licenses (often for relatively small fees and with no duty payments because of the
employment benefits); some jurisdictions are also following the path of licensing along with extensive regulation; a number of
European countries now permit their already licensed gambling operators to offer Internet services but to residents only; and the
USA is still seeking a way in which it can effectively prevent Internet gambling by its residents, whether offered by operators at
home or abroad. There are two main approaches that US could take to deal with online gambling. The first is to continue prohibiting
online gambling either through the current gambling offences in the Criminal Code or by way of new legislation specifically banning
internet gambling.

The second approach is to create a new legal framework for licensing and regulating a legalized online gambling industry in US. In
America, the government is moving towards adopting legislation what will attempt to specifically ban online gambling. Congress is
currently considering proposed legislation that would prohibit most forms of online gambling. The most important bill is the Internet
Gambling Prohibition Act (IGPA). This bill is also known as the Kyl Bill because of its initial proposal from Senator Jon Kyl. The
IGPA was initially introduced into Congress in 1997 but never successfully passed through Congress. (Douglas, p.

59) In 2000, Senator Kyl reintroduced the bill with some significant changes. The new version is quite lengthy and complicated and
cannot be examined in depth in this paper. Specifically, the bill states: it shall be unlawful for a person engaged in a gambling
business to use the Internet or any other interactive computer service to place, receive, or otherwise make a bet or wager. (Douglas,
p. 61) Essentially, this bill would outlaw most Internet gambling except for fantasy sports, state lotteries, and betting on activities
such as dog racing and horse racing. In response to the American approach, it is often argued that attempting to ban online gambling
is naive and counterproductive.

Whether or not banning internet gambling is desirable, issues such as enforceability, increased usage, and assorted jurisdiction
problems all appear to be obstacles to effective prohibition of this industry. Enforcing Internet gambling laws would be a major
problem for authorities. Arguably, even if fut
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