Internet
Mini-Essay
Drop the Bookie, Gamble Online
(TOPIC AREA: Net Controversy)
Antigua. This island is insignificant to the lives of many but
to the government it is the source of many recent headaches. Billions
of dollars were gathered from online gambling in 2002 with $2.4
billion coming from the United States. (1) The problem with regulation
of online gambling is that most of the casinos are based in the
Caribbean, more specifically “the General Accounting Office
found most of the major online casinos are based on the island
of Antigua.” (2)
The Federal Wire Act of 1961 prohibits “bets on sporting
events are unlawful if placed over a phone line from a state where
wagering is illegal.”(1) The problem the government is facing
now is whether or not the Internet is included in the dated law,
causing a loophole in the legal system. Other questions raised
about the Wire Act regard the use of the law on other types of
betting, mainly as the law only applicable to sport-related betting.
(2)
Thus far no agreement can be made on how to regulate online gambling
in the United States. Even in states where all forms of gambling
are banned, such as Utah, enforcement of the law concerning the
Internet may be left to federal authorities because online gambling
occurs across state and international lines. (2) “State
and federal government officials, who have no taxing authority
over the offshore operations, have attempted to rein in Internet
gambling- thus far, unsuccessfully.” (1)
One final group should be considered in this gambling debate,
the largest group of Internet users- minors. Many sites warn that
you must be 18 years old to access the site, yet a study conducted
by the Federal Trade Commission in 2002 found that none of the
over 100 sites they visited “had an effective mechanism
to block minors from entering.” (1) With that information
affirmed, a timely decision from the government may help prevent
thousands of children from developing a gambling problem.
NOTES:
(1) Jennifer Toland, “Cyber Gambling; Sports fans logging
on for online wagering,” Worcester Telegram & Gazette,
Inc.[Online], 26 January 2003, sec. A, p.1. Available from Lexis-Nexis
Academic. [2 February, 2003]
(2) Christopher Smith, “Online Gambling Hard to Police;
GAO study looks at how Utah deals with the challenge,” The
Salt Lake Tribune[Online], 3 December 2002, sec. A, p.1. Available
from Lexis-Nexis Academic. [2 February, 2003]