Internet Gambling in the United States - Essay Example

Internet Gambling In the United s Lecturer: Internet Gambling In the United s Internet gambling is one of the increasing activities that have become common in the US. This activity is increasing because of increased technology advancement; hence contributing to addictive Internet activities. Internet gambling involves the use of the Internet to play casino games, sports and other varied games through online by placing bets. Those who play consign bets on credit card accounts to pay for the winner when playing the game. There are various activities of Internet gambling, but the most common is online casinos, which features available games in casinos. The operators of this business are supposed to obtain licenses in order to conduct their business. Most online gambling activities are based in the U.S where it is legal to manage the online gambling activities. Although some people argue that the UIGEA act will hinder the social and economic activities of the state, it will safeguard the wealth of the state. The Internet gambling activities has laws and easy betting ethics, which certainly leads to the federal guidelines seeking either to limit entree or regulates use on the Internet gambling sites. The online casinos are fairly regulated like any other normal land based casinos in the United States. Therefore, the games that are played through online in the casino sites, which are undergo legality for testing in the gaming regulation board. However, the state government monitors the internet casino closely and they regulate many online gaming activities. This is done in order to increase the safety of gambling through online when using money. One of the regulations that were passed is the Unlawful Internet Gambling Enforcement Act (UIGEA) in order to protect and regulate Internet gambling activities. The state enacted UIGEA law in 2006, and included it under the SAFE Port Act (Security and Accountability For Every Port Act), which regulated the port activity. The Internet gambling law was added later to the SAFE Port Act in September 30, 2006 at the Act of senate, and it was ratified in October 3, 2006 (United States, 2010). The legislation aimed to prohibit gambling businesses envolved in unlawful business activities; thus maintaining safety of the parties involved in the online gambling activities. The Act of Internet gambling dates back in 1998 when the Congress made an attempt of passing some legislation forms to prohibit Internet gambling. However, both the House of Representatives and the Senate failed to come up to a clear agreement on the Prohibition Act in the Congress. There were objections from the interest groups and their lobbyists, who sort to include their own interests on the proposed bill. However, the concern about land based casinos, horse racing, online gambling and other activities led to serious debate towards the Prohibition Act. However, the year 2006 became a different year, and this led to the enacted of the law after a serious trouble arose due to increased corruption and mismanagement in new cycles. This led to the hearing of the pending law of online gambling, which was led by the Representatives including Leach Jim and Goodlatte Bob. They led the case of prohibiting Internet gambling by linking them with the criminal activities and disorder that may arise due to Internet gambling addiction (Rainey, 2009). Goodlatte argued that the Internet gambling had suckled millions of dollars in the United States. Leach argued that fraud cases and identified theft threat were high, thus contributing to the risks on the safety of the nation. He further claimed that it had increased crimes activities as well as drained the nation’s millions of dollars (Kindt and Research Editors Doctoral Directorate on Gambling, 2010). The other anti-gambling supporters linked the Internet gambling activities with increase use of illegal drugs, such as cocaine, and other related criminal activities. These issues led to a serious debate earlier in 2006 pertaining on Internet gambling activities. Although, the congress failed for diverse issues, the political atmosphere favored the opening of the anti- gambling regulations of UIGEA in the late 2006. Many agencies and people have challenged the Act claiming that UIGEA has done more harm than good. The law does not clearly define the unlawful Internet gambling activities and in most case, they are contradicting to each other. The same gambling laws that attack online gamblers have certain exemptions meant for online horse racing betting. Therefore, many American citizens fail to understand the reason of why horse racing gambling manages to pass the legality test, but not online gambling. The insincerity regulation that surrounds the banning of online gambling is beyond belief. There is no reason for the fantasy sport gambling, horse racing gambling and online lotteries to pass legality test, and other Internet gambling activities fail to receive attention. For instance, Jon Kyl, one of the UIGEA authors fought to ensure that Internet gambling activities receive a carve-out. Kyl received many political donations from gambling industries because he argued that the laws are full of hypocrisy; hence, the gambling industry should be left to carry out their business. The opponents argue that there is no reason for banning online gambling; hence, the UIGEA laws are viewed as ineffective. The same politicians, who are claiming that the U.S.A should be a freedom land, have no right of restricting the Americans from carrying out the Internet gambling activities. This makes citizens view this law as hypocritical because the federal government has no issues with the online casinos operating in the United States. Internet gambling results from technology advancement. However, it does not make sense when individuals comment that gambling is acceptable, but it abruptly becomes a misdemeanor when carried online. So, the gambling law is not clear because this conflicts with the law of freedom of exercising the rights; thus conflicting with the bill of freedom of rights. Haerens (2012) argues that UIGEA does more harm than good because it could threaten the stable and smooth operating banking system of America. Therefore, the opponent of the law reveals that the regulation will undermine the financial privacy of the citizens in America; thus reducing the security of the bank accounts. This means that the law will almost make no sense to the financial system as well as social and economic of the state. Some claim that the gambling law is a burden with no benefits. The law will impact the gamblers who may be depending on gambling for economic survival. Even though, the law aims to protect the citizens from illegal financial transactions made online, illegality would not regulate some gamblers pursuing business activities. Many of them will rather risk their business activities with an aim of achieving their economic benefits. The law has driven many operators or gambling industries out of the market; thus the financial analysis reveals that the law affects economic benefits of the country; thus contributing to more harm than good. According to (Gainsbury, 2012), the current US laws regarding Internet gambling is possibly creating an impact in the US market and their financial privacy. This will in the long run lessen the security of the US banking systems. However, supporters of the law argue that the law is beneficial to citizens because it helps in promoting the safety; thus reducing crime cases in the country. The main reason of passing the UIGEA act was to defend the assets of the state. The state enacted the law in order to protect the interests of the minor citizens who in most cases gamble and in the process lose their money. The founding fathers of the federal government have limited entity, and their work is to regulate the interstate business, protect citizens from their personal freedom (Ciaccio, 2010). Therefore, the constitution, which is the federal government, was given power to protect citizens; thus promoting the security in the nation. The UIGEA act is favorable because it was enacted to help many youths who spent most of their time gambling and losing their money. Thus, the law enabled them the bank from transferring money into wrong accounts especially the outflow of money to India, which became common. The UIGEA act is beneficial because it reduces fraud cases and identity theft issues; hence maintaining safety in the financial transactions processes. The UIGEA law was not meant to restrict online gamblers but rather restrict people from committing crimes, such as fraud and identity theft. The law was passed when gambling portals contributed to high losses in the United States. This made the government pass the UIGEA law, but the laws do not clearly define its intended purpose The gambling UIGEA law is subjected to varied interpretations; thus under this act, the companies practicing illegal business in the US should not have all their transactions banned but restricted from illegal business (Polson, 2012). Even so, the laws were directed towards protecting the banks from making wrong financial transactions, which led the state to losing millions of dollars in the process of making financial transactions to the wrong people. The research study indicates that the UIGEA act was the only mean of restricting local gamblers. This was to restrict them from accepting illegal payments operated by gamblers who make wagers online. The law was meant to protect the financial security of the state and citizens from carrying out illegal business. The law was incorporated in the SAFE Port Act with an aim of increasing the port security. The government came up with other policies of identifying and blocking illegal transactions made in the local market. Even though, the UIGEA policy was deemed ineffective, the government came up with effective measures of protecting the safety of gambling operators such as issuing of receipts once transaction is made. Therefore, the government emphasized on the UIGEA policy in order to restrict transaction in any process of transmittal of money, which are related to illegal Internet gambling activities. The UIGEA law is beneficial because it does not only prevent fraud cases, but also helps in maintaining the health of the state from increased complication of health issues or addiction. The cases of health related complication resulting from the use of online services are high. This is because Internet gambling contributes to addiction and other related social disorders that may deteriorate the health of an individual (Haerens, 2012). The supporters of the UIGEA act claimed that online gambling contributed to addiction and other associated crimes. For instance, individual may use illegal drugs such as cocaine in order to become active in gambling for many hours; thus contributing to health issues. It also contributes to isolation, and suicide may result, especially when individual loses a lot of money; hence the law is beneficial because it will reduce the negative consequences linked with Internet gambling. In conclusion, although some people argue that the UIGEA act will hinder the social and economic activities of the state, it will safeguard the wealth of the state. The law will hinder the financial privacy of many gambling operators and banking system in their business activities. It does more harm than good because it would threaten the stable and smooth operating banking system of America. Moreover, illegality would not regulate some gamblers from pursuing business activities. However, the law is beneficial to citizens because it helps in promoting the safety of the state, prevents fraud and reduces crime cases in the country. References Ciaccio, J. C. P. (January 01, 2010). Internet gambling: recent developments and state of the law. Berkeley Technology Law Journal, 25, 1, 529. Gainsbury, S. (2012). Internet gambling: Current research findings and implications. New York, NY: Springe Haerens, M. (2012). Internet Gambling. Detroit: Greenhaven Press. Hornle, J., & Zammit, B. (2010). Cross-border online gambling law and policy. Cheltenham, UK: Edward Elgar. Kindt, J. W., & Research Editors Doctoral Directorate on Gambling. (2010). The gambling threat to economies and financial systems: Internet gambling. Buffalo, N.Y: William S. Hein & Co. Polson, S (2012). Hearing discusses UIGEA problems. PokerListings.com. Retrieved on 5 November 5, 2012 from http://www.pokerlistings.com/hearing-discusses-uigea-problems-24938 Rainey, B. P. (January 01, 2009). The Unlawful Internet Gambling Enforcement Act of 2006: Legislative Problems and Solutions. Journal of Legislation, 35, 2, 147-169. United States. (2010). Internet Gambling Regulation, Consumer Protection and Enforcement Act: Report together with dissenting views. Washington, D.C: U.S. G.P.O. Read More