Internet Gambling - Literature review Example

Internet gambling Internet gambling or online gambling is the general given to gambling using the internet as the way to access these services. Ideally, the first full operational gambling software saw its development at around 1994 where Micro gaming Company developed the software. Sequentially, the safety of online gambling software received security back up from Crypto Logic Software Development Company which developed software that sealed all security loopholes. In effect, online gambling gained popularity over the years as it offered comfort and convenience to those intending to gamble (Grant & Potenza 30). In essence, the amount of revue acquired through gambling in the state of Nevada is one that manages to sustain the state economically. According to the statutes of Louisiana, computer gambling is the intentional involvement or direct conduction of bets, lotteries, or games via this channel. However, these activities entitle an individual to risk acquisition of losses or profits as a result of the risk through the placing of bets on items that are of value to them. This is through the use of the internet, or any other affiliation of computer systems or networks. There are at least four types of interactive gaming activities that include gambling within the borders of a state and secondly gambling between other states. Fourthly, there is the gambling between a foreign nation and a state and lastly the full gambling outside the borders of the United States. For instance, these forms of gambling are intrastate, interstate, foreign and wholly beyond country borders respectively. Gambling may also be illegal or legal depending on the laws and provisions stipulated under the federal act governing this activity. Internet gambling as an illegal entity Ideally, any winnings that an individual may acquire draw a certain percentage of revenue to which the Internal Revenue Service collects so as to benefit the state. In additional, gambling businesses receive accreditation and licensing from the Gaming Commission to which it establishes which individual qualify to operate gambling facilities. This is no different to online gambling sites as they become subject to scrutiny and evaluation. Objectively, the individual intending to operate online gambling sites have to be individuals who have tremendous records of tax adherence and would intend to maintain the same record when it came to revenue submission. Therefore, internet gambling becomes an illegal entity when these requirements do not attract full compliance. Legality of online gambling According to Federal Wire Act, illegal gambling is the process to which an individual may knowingly engage in betting or wagering by the use of communication aids that assist them in cheating in order to achieve winnings. This act becomes an act of felony because it involves the transmission of communicative facilities that assist in the placing of bets and wagers making it unfair play. Over the years, the US citizens have attracted federal suits from third world countries as a result of operating internet and phone wagering on sports and gambling activities that have led to them acquiring winnings illegally. Therefore, this forms the legality of gambling to which any individual who tries to acquire winnings through unscrupulous means attracts a criminal charge that may include jail term not exceeding five years. Subsequently, internet gambling is a controversial way of generating revenue chiefly because the beneficiaries of this service are anonymous. In essence, once an individual acquires the winnings it would be extremely hard to trace them due to their unknown physique. Moreover, internet gambling also facilitates pathological gambling to which an individual may develop an addiction to this vice (Grant & Potenza 61). This is because of its convenient access at the click of a mouse button making it hard to control this addiction. Internet gambling’s regulatory control over land gambling In essence, there are at least two thousand six hundred and forty internet gambling sites governed by seventy four jurisdictions across the United States. The number stands as of the present internet based statistics. On the contrary, there are at least four principal areas that gambling may apply. They include lotteries and casino gaming that falls under the games of chance. Secondly, there is poker that falls under the mixed skill and chances. Further, there is horse racing and sports wagering as the third and forth gambling areas respectively. These internet sites operate within strict regulations and governance that make them legal operational businesses that allow for the legal trade and profit generation like any other business venture. These internet sites have exclusive legislation protecting their existence to which many countries do not enjoy this privilege. Ideally, these internet gaming sites only exist as a result of the revenues that the government acquires from the winnings of the gaming individuals ( McGowan 41). However, the government has sought to address the balance between the social costs that exist with the freedom of gaming within the US. Moreover, internet gambling enjoys the privilege of electronic money transfer of their winnings without having to physically doing so. The placing of bets and wagers is also through the same mode that may include credit transfers and actual money wiring. These provisions fall under the 1961 that allows for the handling of money (McGowan 54). However, the transfer of finances becomes an illegal practice if done by financially transaction providers directly to internet gaming and gambling sites. On the contrary, US citizens playing in foreign gambling sites use financial intermediaries that are not of US origin to facilitate their winnings. Remarkably, these intermediaries make it possible for these players to evade tax submissions. Ideally, internet gambling prohibition becomes tasking because individual prevention is hard. Despite the netting policies in place, it is still hard to track down illegal internet gambling service providers due to the advancements in software that can evade tracking by the US government. Sequentially, internet gambling will increase land gambling revenue because it will increase addiction making individuals to access gambling halls when they are not online. Arguably, the intended foreseen revenue from legal internet gambling and bets on sports would increase to up to thirty eight percent if proper revenue collection mechanisms are in place. Further, players and operators of online gambling sites have to be within the same state in order for the Wire Act of 1962 applies effectively. Arguments around sports wagering being both legal and illegal In essence, sports wagering is a widely illegal form of betting that has proved to be a profitable venture especially in Nevada because it is the only state that has legalized it (McGowan 55). Sports wagering mainly concerns animal races and human athletic games like wrestling. Ideally, both of these attract lots of monetary bets that raise the stake of the money offered as winnings. Essentially, individuals bet on ponies that fall under the control of skilled jockeys in thoroughbred racing. This form of betting only exists within a state hence inapplicable in other US states. Under the Interstate act on horse racing, there are two critical requirements that an operator needs to fulfill before conducting an interstate gaming race. For one, the operator has to negotiate a fee appropriately for each track subject to approval by the hose racing association. The second provision allows the race tracks operators to safeguard their tracks by either refusing or acknowledging an interstate wager to which the operator has exclusive rights. Remarkably, the act on horse racing saw its amendment in 2000 that stated that wagering through the telephones or internet may apply as long there was no intention of cheating (McGowan 38). This makes wagering a legal practice to which illegal acquisition of winnings by any unauthorized means is an offence punishable by law. However, wagering only applies only in prior depositing of bets to which no other may apply once bets have been presented. In the humanly aspect, sport wagering implies that making of bets may be on either individuals or on teams. In this form of gambling, there is no tally of the bets made hence making it hard to track down on the revenues accumulated from this wagering done through bookies. This form of wagering is common in both professional and college American football to which the bets amount to billions of dollars (McGowan 49). Arguably, the revenues totaled to almost three billion dollars in the Nevada state where this form of wagering is legal by 2009. Subsequently, the enforcement of federal laws negating the legality of sports wagers has been on the decrease. This has been possible as the federal laws enforcers have focused their time and effort on serious rather than on petty offences like sports wagering. Further, prosecution of those who engage in this practice attracts minimal fines hence making the investigations a waste of tax payer’s money. Further, the public refuses the validity of gambling being a criminal offence hence making them venture more on gambling aspects. The public views it as a preferential engagement to which they need not experience interference. In addition, technological advancements have made it impossible for operators and players to get caught making it hard to find and prosecute them (Grant & Potenza 30). Lastly, the media portray sports wagering as a legal past time activity because of the popularization of fantasy sports (Grant & Potenza 176). Therefore, the federal arm of government finds it hard to implement laws that are not popular within the public domain. On a national scope, restriction on sports wagering may be futile because of these challenges posed to adequately enforce policies governing this activity. Further, gambling has become a political issue hence questioning the efficiency of policies surrounding the issue. Finally, the changes in policies have been unsuccessful in implementation of laws that articulate laws clearly. The focus from the historic enforcement ideals has shifted in to being of those that facilitate revenue rather being illegal. As a result, the federal government and congress have been unable to effect clear policies making this practice a federal offence. This becomes a national problem because states may make sports wagering legal or illegal without having to involve the central government. On the contrary, the central government negates this form of gambling because it may influence the young in to believing that this form of gambling is lawful rather than embracing true sportsmanship. Therefore, the US congress works against the legalization of sports wagering. Work cited Grant, Jon E. Marc N. Potenza. Pathological Gambling: A Clinical Guide to Treatment. Washington, D.C: American Psychiatric Pub, 2004. Print. McGowan, Richard. The Gambling Debate. Westport, Conn: Greenwood Press, 2008. Print. Read More