Imagine about a country where general public safety is at great risk due to law enforcement layoffs, where states are forced to release criminals from jail because they cannot afford to maintain county jails and state prisons and where funding cuts for basic public education jeopardizes the future leaders of business and government?
It gets worse… this country can no longer afford to secure its borders and drug cartels from neighboring countries are able to come and go as they please, poor and impoverished immigrants (and even more criminals) infiltrate this country without any documentation allowing even more burden on an already financially broken land.
In desperate measures, this country begins to again increase an already crushing deficit by taking “loans” from other world leaders whom do not share “The Dream” of which this country was founded upon. Unable to repay foreign debt and before too long, not only is their “Dream” crushed, but her people will soon become citizens of a third world country.
Unfortunately this is the current financial status our very own United States and if we do not make some changes in our mindset… this is our future.
But do not write off the future of America just yet. Fortunately there are a few state governors think it it’s time to look at other forms of revenue and their eyes are on legalized internet gambling. After all, the house always wins and the taxation of all those participating within the internet gambling community will pay their dues by way of good old fashioned American income tax.
New Jersey was actually the front line of the online gambling revolution by passing a state bill allowing land based casino operators to offer New Jersey residents a safe and secure way to gamble online. However as of yesterday, Gov. Chris Christie vetoed the bill which would have legalized local online gambling Atlantic City casinos to set up gambling websites for residents of the Garden State.
This is a devistating economic blow as it was estimated that intrastate online gambling in New Jersey would produce at least $200 million in revenue, of which about $30 million would be paid to the state in the form of taxes and although that may not be enough to solve their state’s failing budget, it is an annually recurring form of cash flow to keep the state out of the red.
Although there was the question of whether online gambling would cut into the revenue of the land based casinos in Atlantic City, one independent study claims that it would probably reduce Atlantic City revenues by 5% at the most and if individual casinos also operate the gambling websites, the Atlantic City casino revenue would simply be taken from one pocket and put into another.
Online gambling has been officially outlawed in the United States since 2006 (UIGEA / Unlawful Internet Gambling Enforcement Act), as when Congress forbid banks and credit card companies from processing online gambling transactions within the United States.
However, while Congress can pass laws governing a national commerce, by definition: “The United States” cannot dictate what individual states do or do not allow within their states…. although legal challenges on a national level would no doubt be plenty.
In the past, the U.S. Justice Department has declared over and over again that just about all forms of online gambling are illegal, although it has not specifically addressed online/interstate gaming issues such as state lotteries and horse racing which is widely accepted in states like Kentucky.
Opposition from Indian tribes will be likely, as they realistically have a monopoly on land based casinos in many states (other than Nevada and New Jersey) as well as offshore Internet gambling sites and at least some online casino operations.
Of course, there are those who argue that government can never successfully prohibit anything. Witness such blatantly ignored laws as traffic regulations, drug laws and prohibitions against tax chiseling. Supporters of this view would say that gambling will happen and the government might as well take its cut.
Supporting this view is the experience of offshore sites like Poker Stars and Full Tilt Poker. Although it’s illegal for Americans to gamble on these sites, it’s illegal for the sites to allow it and it’s illegal for financial institutions to transfer the money, an estimates 10 million Americans play regularly. In other words, governments that let the revenue from gambling elude them may wind up behind the 8 ball.
By Magyck Sysop
Magyck0ne is the webmaster and a contributing writer at Online-Gambling-Newz.Com and has been in the online casino and gambling marketing business since 2001.
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