Friday, September 14, 2007

Blog Post #1


Regulation of Internet Gambling

Internet gambling is a growing business that has influence globally. However, in the United States, Internet gambling across state boundaries and international borders is illegal.

The country of Antigua and Barbuda battled the U.S.’s Wire Act with the World Trade Organization. Antigua viewed that the law violated global fair trading practices. The little Caribbean island country stood up to the U.S. and won even through two U.S. appeals.

The WTO’s decision stated that the U.S. did not prove public moral or any other need for the complete ban on online gambling. The upheld decision calls into question what the U.S. will do about Internet gambling.

Because a dominant government cannot control the Internet and its commerce, the U.S. regulation of Internet gambling requires examination into all possible options.

One suggestion is to legalize online gambling (however, this would create problems in continuity between state and federal rights because currently individual states decide whether gambling is legal within the state). That way, as many debaters on BusinessWeek.com suggest, the government could regulate the flow of the money. With regulation of Internet gambling, taxes could be collected. For example, in parts of Great Britain legal betting is taxed even when completed online.

American citizens gamble online despite U.S. law. Besides, current laws only apply to gambling businesses, not individual gamblers. Most gambling businesses hold their headquarters (aka servers) outside of the U.S., so the U.S. does not have power to shut them down or regulate the sites. Therefore, another possibility would be to not change the law.

However, Nelson Rose, a law professor at Whittier Law School, said the international trend in Internet gambling is toward more government regulation.

Even though gambling can become just like an alcohol addiction, it is the individual’s right to chose to live responsibly or not. Government cannot attempt to eliminate all risks for its citizens; Its job is to protect and handle matters outside an individual's abilities.

The U.S. may just have to remember that it really does not rule the world.