The more America opens the door to online gambling, the harder it will be to stop it, if the need should arise in the future. That is the message that the United States is sending to the world with UIGEA, the Unlawful Internet Gambling Enforcement Act.
The United States feels that the internet as a new route to an old problem. Suddenly, millions of people who would not otherwise go to the casinos can suddenly gamble from the comfort and privacy of their own homes. On the other hand, this new technology also allows internet savvy teenagers to gamble with their parent’s credit cards. In addition, it has also increased the number of compulsive gamblers, who now have no safeguards to prevent them from gambling their life savings away, their screens a digital altar to a god of chance with the false promise of unearned wealth. And it creates a new opportunity for organized crime.
For those reasons, Congressed recently passed the draconic UIGEA, the Unlawful Internet Enforcement Act, banning all credit companies from financing casinos and other gaming transactions, only to have the World Trade Organization rule last March that the move is illegal. In response the the move by the WTO, the United States has responded by using an escape clause and excluding Web gambling from its list of services that it would allow the WTO to cover. It was a bold step that rattled other nations because it punches a hole in the WTO's framework and might come back to hurt the US on other trade issues.
It seems that a kind of tug-o-war is going on, as this move cause other countries, such as Antigua and Barbuda, to demand compensation for lost income incurred by not being able to serve American gamblers. Indeed, Antigua has been building up its economy around online gambling. Negotiations opened last month with little hope the US will pay the $3.4 billion a year demanded by Antigua.
The US stands on weak ground in this confrontation. Many state governments have become addicted to revenues from ever-expanding legalized gambling and fear competition from foreign gambling sites. The US also allows electronic gambling in interstate horse-race betting and state lotteries. And as for safeguarding children, one need only stand at the checkout counter of a convenience store and watch many underage teenagers being sold lottery tickets.
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