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Gambling: Online Gambling
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Bruce Roberts, executive director of the California Council on Problem Gambling, said his Anaheim-based nonprofit remains worried about online gambling by young adults. A survey released this month by the Annenberg Public Policy Center at the University of Pennsylvania found that more than one million young people use Internet gambling sites each month. "It's wide open with no controls and no regulations, no enforcement or penalties for underage gambling."
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A new global initiative and international code of conduct to address responsible Online Gambling procedures is under discussion by the industry following a top-level roundtable discussion held at a recent London trade show. (UK Casino Times)
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- In September, the Senate passes the Internet Gambling Enforcement Act 2006 (H.R. 4411) after the bill is attached to unrelated legislation (Safe Ports Act) on a Friday night just before the Congress breaks for its recess. As a result of the legislation, which has exemptions for horse racing, state-run lotteries, and fantasy sports, American financial institutions are banned from processing any transaction with an online gambling operator. Big, publicly-traded companies like Partygaming and 888.com close their operations to American players and the industry's revenues take a major hit. President Bush signs the bill into law on October 13th.
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In December 2002 the US General Accounting Office published a Congressional Report in which it stated that online gambling earned $4 billion from players around the world. Of that sum, over $2 billion was bet by US residents.� Bear Sterns said it was true and that the worldwide profit would have been more than $5 billion if many companies stopped offering credit card transfers to offshore sports books. Meanwhile, in Nevada people spent less than $2 billion on sports books� in 2002, and this is the first time in a decade that Nevada earned below $2 billion. (more…)
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After the WTO ruled that the U.S. had violated trade rules in barring Antiguan online gaming operators from the U.S. market, the U.S. withdrew its WTO obligations with regard to free trade in the gambling area. The U.S. decision to withdraw its market commitments, in order to comply with the WTO, is the first instance of such an action by a WTO member. The action by the U.S. sets a precedent that other WTO members could copy in order to back out of their own commitments once they consider them inconvenient. In turn, the Costa Rican and Antiguan arbitration requests are the first ever in response to a withdrawal of commitments.
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