Study Reveals US Losing Billions to Online Gambling Ban
A study by famed impartial accounting firm PricewaterhouseCoopers concluded that the effort by the US to ban online gambling rather than tax it will cost the US $52 billion in revenue over the next three years. And those numbers do not include the expense of prosecuting online casinos and attempting to enforce the UIGEA ban.
The estimate of potential revenue from proper regulation and taxation of Internet gambling rose since Pricewaterhouse last studied the issue in 2007 by twenty-two percent, due to increased US patronage of online casinos. Clearly, the UIGEA block has only been effective at costing the US massive funding, without stemming online gambling activities.
Representative Barney Frank has already promised to introduce a bill to repeal the UIGEA later this month. Frank should find politicians rushing to his side, as the study shows both the ineffectiveness of the ban and a potential source of new government revenues.
Further, legalizing and regulating online casinos would make actions by the European Commission that may lead to damages against the US moot. If the UIGEA remains in place and Department of Justice policy stays the same, there is a great chance of EU complaints to the World Trade Organization resulting in a big bill for the US.
The US financial system is also hoping for removal of the UIGEA, a law which unfairly imposes policing responsibilities on banks and credit card companies. Only the right-wing fringe evangelistic special interests remain behind the Internet casino ban.
