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November 18 - USA politicians are finally willing to listen to a debate on the merits of legalizing and regulating online gambling, as was made clear when the House Judiciary Committee acquiesced to hold a hearing on the future of Internet gambling. But before one gets too excited about the possibility of the UIGEA being abolished and Americans being allowed to exercise their civil liberties and do what they like with their own money, one needs to understand the spirit in which this hearing was held.
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The chairman of the committee, John Conyers Jr, opened proceedings by declaring that "gambling is a social evil". So much for open-minded debate. The only reason this topic is now open for discussion at all is that the USA faces the wrath of WTO members, and could be on the hook for penalty payments amounting to billions of dollars for their refusal to allow offshore companies to participate in the American online gambling market.
Let's get one thing clear, and end the "debate" straight away. America already sanctions, taxes, and profits from online gambling. It's called online horse racing and online lotteries, and there are exemptions carved out for these websites, so long as they originate in the USA. As soon as a sportsbook based in say Antigua (hint hint) tries to offer betting on the same horse races that becomes a "social evil" and a criminal offense.
So, to clarify, online gambling that is not sanctioned within the United States is a social evil. Bricks & mortar gambling at casinos dotted around America is also premissable and encouraged wherever and whenever possible.
Those who testified before the committee all seemed to agree that the UIGEA is a shoddy, poorly-made law. Even the DOJ representatives said that they didn't really care for it, but that's because they feel that existing state laws are sufficiently clear regarding the illegality of online gambling.
Annie Duke, the professional poker player, spoke intelligently and eloquently about the hypocrisy of America's attitude towards online gambling and the implicit attack on personal freedoms that these laws represent. One feels uncertain that this audience could be persuaded by logical arguments, however.
What might ultimately sway them is the possibility of losing powerful supporters like the banking sector, who have no desire to implement the new law, or of incurring those billion-dollar sanctions from the WTO.
While it is all good and well to plead one's case, and the case is obviously water-tight in favor of online gambling regulation, the bottom line should be realistic - it is very difficult to overturn the UIGEA and end the ban on online gambling.
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