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]

THREE WEB SITES:
Title: Internet Law Year in Review 2002
Web Address: http://www.gigalaw.com/articles/2000/kubiszyn-2000-09.html
Brief: Background on Internet gambling and the National Gambling Impact Study Commission
Source: Dolesco LLC

Title: Should Washington Ban Internet Gambling?
Web Address: http://www.cato.org/dailys/06-13-02.html
Brief: Online gambling and privacy rights of Internet users
Source: Cato Institute

Title: U.S. efforts to impede Internet gambling are counterproductive IGC says as it calls for regulation
Web Address: http://www.gamingfloor.com/pressrel2002/IGC_US_Internet.html
Brief: The U.S. is scaring away the reputable casinos and not regulating others online
Source: Interactive Gaming Council

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