Gambling Goes Global on the Internet
(Case 5-2)
GLOBAL MARKETING
Discriminatory or Not?
As the case explains, gambling has existed for many centuries all around the globe. With the evolution of the Internet, this form of recreation has become widely available for everyone with Internet access. This has created opportunities for gamblers, but has become a challenge for those trying to stop the spread of such recreation.
To answer the first question, of whether Unlawful Internet Gaming Enforcement Act (UIGEA) unfairly discriminates against offshore gaming companies, what is (UIGEA) and what it does or is meant to do should be considered first. In its current form, the UIGEA forces banks and financial institutions from
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Moreover, the success of such legislative efforts seems hard as there are a great percentage of citizens in disagreement of such law, as are the Poker Players Alliance (PFA) and The American Gaming Association. Both of these huge stakeholders firmly disagree to the legislative efforts. On the other hand, these efforts seem difficult as when implementing the prevention of financial transactions to these services, banks and other financial institutions are greatly affected. This is so, as the term “Internet Gambling” uses such institutions to process payment for the services provided by offshore gaming companies. Now, the US government is somehow forcing these financial institutions to prevent such payments, not realizing the huge task impose on them. This is a hard task for banks as they are expected to help prevent unlawful internet gambling, when it is hard to even identify and stop cross border payments that are not subject to US law. They strongly believe that preventing the use of online payments is not an effective way to approach such activities.
Inefficient Use of Government Resources
The above statements lead to the third and last question, which is whether or not the US is devoting substantial time and money to curtail offshore Internet gambling. From the question and answer earlier on whether the (UIGEA) is a fear act or not on offshore gaming companies, it was clearly stated that it is not, hence, this can lead to conclude
Gambling is becoming increasingly popular in today’s society. Major casinos and online gambling sites attract
According to the Commission on the Review of National Policy toward Gambling, gambling in the United States grossed over $40 billion dollars in 1995 (Dunstan, 1997). Professor I. Nelson Rose describes three waves of gambling during the history of the colonies and the United States. The first of these waves began during the start of this great nation and lasted until the mid-1800s. The second wave was at the end of our Civil War and lasted until the early 1900s. Finally, the last wave started during the Great Depression and is still going strong today. I believe a fourth wave has already commenced with new technology paving the way. The new technology consists of, first and
In today’s world there are many different types of gambling such as casinos, state lotteries, pull tabs, bingo, sports and internet gambling. Popularity of this activity remains strong in America, however, there are individuals and groups that continue to scrutinize and attack this industry. I believe gambling is a fun social activity that should not be prohibited or policed by the federal government. It should be an individual’s right to choose if they gamble or not based on their own personal beliefs and view point.
Considering the immense popularity of online gambling and taking into consideration that land casinos are already legal in a number of provinces, it is high time to end the legal charades. There many considerations here, but mainly the Canadian public has continually moved pro- gambling ever since provinces were granted the right to choose back in the 1960s. It is important to take a look at the absurdities regarding Provincial jurisdiction, as it relates to the internet, and how offshore sites come into play.
Although the development of human civilization is accelerating, the gambling is one of the of the oldest entertainment industries all over the world which does not change dating back to the ancient times. Taking the United States gambling history as an example, “In America, colonial legislatures authorized 157 lotteries from the 1740s through 1776 to assist governments and other institutions. The first legal casinos of the modern era opened in Nevada in 1931. The country’s first lottery, in New Hampshire, began in 1964.” (Schwartz 43) Whatever the gambling is legal or illegal, it exists in the society for such a long history. The gambling is an outstanding and magic entertainment approach to have a leisure time or reduce the pressure from the duty work and a fast profit model for the investors from the beginning to nowadays. The trend would be sustained or even developed faster and bigger in the future.
Social Although gambling industry can bring more employment opportunities and offer diversified leisure activities for the public, it could also lead harms. ‘Problem Gambling’ is the main disadvantage that gambling produced, it may result in an increasing number of personal bankruptcy, suicide, crime and child welfare may be ignored and so on (Williams, Rehm & Stevens, 2011). Hence, the Australian Gaming Council formulated the Responsible Gaming regulation to conduct the gambling industry in Australia and reduce the existing and potential harms.
Since the actions of the major online gambling sites promote, and will continue to promote, usage by individuals in states that outlaw online gambling, the sites should be illegal on the federal level since they violated the UIGEA.
There are many different forms of gambling. Whether one is betting on a lottery ticket, a horse race, a sports game, or slot machines, to name a few, they are spending money with unfavourable odds of winning that money back. Many people cannot control when they walk away from gambling, as they will continue to bet in an attempt to win back the lost money. The issue is - for the most part - that the losses continue to increase. In Victoria, in the fiscal year of 2000-01, gamblers lost a total of $14.38 billion, including $2.36 billion on the leading cause of losses, poker machines (11). This can result in problem gambling. Based on different surveys in Canada, it is estimated that approximately 1 in 20 Canadians either have a gambling problem, or are at serious risk of obtaining one. 1 in 20 Canadians adds up to 760,800 problem gamblers (12). In the US, an estimated 3 million people are problem gamblers, and another 15 million are at risk of developing gambling problems (13). Problem gambling would not be as severe of an issue if it only harmed the gambler themselves, as it is their choice to gamble and displays a only a lack of self control. The issue is that people are indirectly affected by problem gambling. It can result in problems with personal relationships, neglect of ones family, bankruptcy, and stress related disorders such as depression, or insomnia (14). Problem gambling also has a positive correlation with crime. This means that the more problem gamblers there are, the more crimes are being committed. Statistics from a published survey show that only 3.3% of responsible, low frequency gamblers have been convicted of committing a crime, while a staggering 28.3% of problem gamblers have been convicted at least once (15). These numbers show that problem gamblers do not only harm themselves, but the consequences have a continuous ripple effect,
Instead, it made it a federal offense, punishable up to five years, for financial institutions to process payments for companies operating in “unlawful Internet gambling.” Sports gambling operations are the only businesses specifically mentioned as “unlawful Internet gambling” within the UIGEA. Otherwise, the rest is left to wide interpretation. Under the UIGEA, games of chance are considered “unlawful gambling,” but no specific games were cited. There certainly is a valid argument to be made for prohibiting games of chance over the Internet, but the authors of this bill ruined their credibility by appeasing state lottery lobbyists. Yes, lotteries received an exemption from the UIGEA even though they are completely subject to chance. Likewise, lobbyists corralled exemptions for fantasy sports, dog racing, and horse
“Federal gambling statutes are a hodgepodge, relying mostly on state laws in defining the offense” (Henning). There are many different statutes, but only certain ones were used in the investigation of fantasy sports. “The Unlawful Internet Gambling Enforcement Act, which prohibits accepting payments for gambling that occurs over the Internet when it would be illegal under federal or state law in the place where it was made” (Henning). This Act was used in the investigation because in fantasy sports you can win money in the games on the internet and can be illegal under the state or states law. “The statute was attached at the last minute as a rider to port-security legislation in 2006, aiming at online foreign poker sites that were quickly gaining popularity” (Henning).
The concept of gambling has been around since the 1600’s when the original thirteen colonies had their own individual lotteries where people viewed gambling as a “civic responsibility” to play. These lotteries helped establish multiple universities such as Harvard, Yale, Princeton, and William and Mary. Gambling has been legal and then banned several times in three different eras; the first era in the 1600’s to mid-1800’s, the second in the late 1800’s to early 1900’s, and finally the mid 1900’s to present day where some types of gambling remain legal. Throughout multiple decades, people have constantly bickered back and forth stating their opinions on what defines gambling, and if it should be illegal or legal. More importantly, all types of gambling should be legalized in the United States since multiple types of gambling already exist and are considered legal, it’s improper to permit some and leave others out. Moreover, gambling stimulates the economy by bringing tourism to the area and creating jobs for those in need of one, as well as, making revenue from taxes, benefiting the state and local government.
Gambling is all around the United States, and it can be a dangerous game for families. Many casino’s find gambling as a profit for their Company, since many people from around the United States will come to their casino and try to win it big with their own money. Gambling has been around for many years and a statement made by Worldcasinodirectory.com, stated “To begin with, gambling did not originate in the US- it came to this country with immigrants from Europe, Asia- especially China, and other parts of the world.” The United States was just another victim of an ongoing addiction. By, understanding how gambling reached the borders of The United States, how a notorious gang leader started the empire of gambling, and how an addiction pushes people to their limits, can help understand how gambling has become such a demanding element in a society.
Back in 1996, the explosion of online casino gambling swept the world. The United States had been a large part of this, and many gamblers had turned to online casinos for all of their gaming. For many years, these casinos continued to be played unabated. Unfortunately, back in 2006, legislation was passed that made it slightly difficult for online casinos to continue to operate. This legislation, sneaked in by piggyback through the Safe Port Act, would be named the Unlawful Internet Gambling Enforcement Act, and it became a thorn in the side of the online gambler, the online casino, and all payment processors there in.
There are a few reasons that the Government should not involve themselves in this situation. First and foremost the constitution does not authorize the federal government to obligate itself in the gambling and the gaming industry. Second citizens who live in a
Most of us have heard of fantasy football. Online fantasy has risen in popularity over the past couple of years, due to advances in technology. With this rise in popularity, it has raised eyebrows at the state and federal government levels. There are many grey areas when it comes to gambling online, that many people still don’t understand. Many questions are being asked, such as legal transactions with credit cards, is online gambling causing a problem with a rise in gambling addiction? Over the course of this report, I will go over the good and the bad of making online gambling legal and regulated.