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The USA Online Gambling Laws and Their Impact on Other Jurisdictions

There has been feverish talk in the pressgovernment is now actively soliciting for
recently as to the possible effects that thebusiness from companies who are to be exiled
recent criminalisation of online gambling infrom the US, in a similar fashion to that
the USA will have on the British market. Manyseen in Antigua, whose government is offering
have suggested that the UK government willto licence US gaming sites - albeit, of
follow suit, resulting in a prohibition oncourse,  at  a  price.
the activity within British borders, while
others argue that this is, in fact, too goodThe British government has a liberal history
an opportunity for the UK government to passas far as online gambling goes, as
up. It is argued by these individuals that,illustrated by their actions with regard to
if the UK were to begin attracting Americanthe EU. As members of a common market, EU
gamblers who now have nowhere else to go, themember states are obliged to accept goods and
financial gains available to the Exchequerservices (including the provision of online
would  be  too  great  a  temptation.gaming) from all other member states, without
prejudice. When a special exemption was made
Online gambling is one of the fastest-growingfor online gambling, several member states
sectors of the service industry in Britain.sought to outlaw the practice. Britain,
One need only look at Betfair, one of thehowever, along with states such as Denmark,
market leaders, for evidence of this; lastpreferred to legislate and regulate, as a
year the company recorded year-end profits ofresult of their belief that people would find
$44 million, off the back of a sports booka way of gaming regardless of its legality -
which was only established in 2000.the state might as well, therefore, try to
Similarly, the taxation of online gambling ismake  some  money  out  of  it.
one of the most easily available sources of
revenue for the Exchequer; it is a seeminglyIt is for precisely these fiscal reasons that
never-ending stream of money which can beit seems almost certain that the process of
very easily taxed, particularly bearing inlegalisation and regulation of the online
mind the general public antipathy towardsgambling industry will continue apace in
gambling. It is this very concern as toBritain. The importance of the sector to the
'social cost' of the activity, rather thanExchequer is too high; paradoxically, in
the potential financial gain that itfact, the outlawing of the activity in the
represents, that makes regulation andUSA  should  cement  this  position.
taxation  politically  possible.
Indeed, it is likely that we will see an even
It is the same antipathy which informs themore markedly rapid growth in the sector as
growing opposition to the government'sAmerican gamblers look for a similar, but
legalisation of online gaming. It is thoughtlegal, gaming experience. This will have
in many quarters that the social cost farpositive effects for the British gambling
outweighs the social benefits and, as such,community; increased demand will mean an
there are fears that the actions of theincrease in the number and quality of
American government could pave the way forservices available. Similarly, on a more
the outlawing of online gambling in the UK.basic level, the more players taking part in
However this seems unlikely; the Britisha game, the higher the jackpots will be, or
government has already expended large amountsthe more competitive the odds available. This
of time and money establishing licensing lawscan only be a good thing for players.
around online gambling. Indeed, the



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