Thursday, February 15, 2007

Americas Watchdog discovered the new legislation has had little effect with
Online Casinos. With the exception of one indictment, its been business as
usual, or the off-shore online casinos have invented new schemes to
circumvent the new US laws. After the 2006 legislation was signed by the
President; many casinos in England or other countries moved their online
gaming/casino web sites off shore, and created or fortified business-banking
relationships with German banks or other financial institutions that began
to, or continued to openly assist in wire transfers of US bets or gambling
proceeds to and from the internet casinos (money laundering). In one
specific case, a German Bank wiring gambling proceeds & writing checks is
owned by one of the worlds largest financial institutions, and in another
case a German-based internet payment service openly talked about "laundering
money for thousands of US clients". According to Americas Watchdog, the
number of US gamblers using Online Casinos is probably in the millions,
involving all ages, genders and races. In one instance, an offshore casino
operator openly boasted about the fact that his casino was "clean" compared
to online casinos operated or run by the "Russian Mafia". The same operator
made the statement that his casino had four US players lose $500,000+ each
in December of 2006. What does all this mean for US citizens? According to
Americas Watchdog, "this situation is very, serious and nothing will change
unless the US decides to make it legal for individual states like Nevada or
Native American Tribal Nations to permit US Citizens to play on line, in a
regulated and controlled environment". Its a war-prohibition that will never
succeed unless we change the tactics and regulate the environment. As
importantly, legal US Online Casinos would bring in most international
players, because these individuals would see it as safe and a transparent
way to gamble on line. Who wants to gamble on line with organized crime?

The American Gaming Association is on record as saying the new Internet
Gaming Legislation is "confusing".

Americas Watchdog believes that the American Gaming Association or
affiliated Associations should begin to lobby Congress & the Bush
Administration for immediate amendments to the Unlawful Internet Gambling
Enforcement Act that will allow for licensed US Casinos to be able to offer
their services to US Citizens or International players. This would have
three positive affects.

1. US Citizens who go online to US licensed casinos would get a regulated
gaming or casino environment. A regulated environment is not offered by
existing offshore casinos or sports books. The offshore gaming industry
would effectively be out of business losing the bulk of even their European
or Asian clients to the US.

2. Off shore-Internet Gambling is a multi billion dollar a year business.
Why not tax it and control it? Further by taxing & regulating the US online
casinos and effectively shutting down off-shore gaming, US law enforcement
could pursue other criminal activities because this particular issue would
no longer be a major problem, provided US banks actually comply with
anticipated federal banking regulations.

This change would also put most illegal US bookmakers out of business
because US consumers could actually place a legal wager on a sporting event,
or other gambling activity with a licensed US casino/sports Book. Illegal
bookmaking-sportsbook in the US is also a multi billion dollar a year
business.

Why not tax & regulate this activity?

3. The entry of licensed US casinos into online gaming would effectively
shut down or cripple all offshore gaming web sites. This could create
thousands of new tax paying jobs in the US. Why support some other countries
economy, when the US should be able to control & regulate its own?

The United States has a poor at best record on prohibitions. From alcohol in
the 1930's to its current 'war on drugs'. The new US legislation will not
stop offshore online casinos or gambling. Why not create a sensible
regulated environment that will be a win for US Citizens, and for the US
Government and individual State Governments that can control the activity,
and tax it?