U.S. backpedaling on Internet gambling laws
By
STEPHEN NOVER - Experience, knowledge and contacts spell long term profit
April 11, 2007
12 comments
David just knocked down Goliath again. This time it could be for good.
The little island of Antigua, with a population smaller than Green Bay, Wis., won another favorable ruling from the World Trade Organization in their battle against the U.S. regarding online gambling.
Antigua has battled America for five years in the WTO, successfully arguing the U.S. anti-Internet betting stance has infringed upon the island nation’s trading rights. Now, after last week’s WTO decision, the U.S. just may have to face reality.
That reality is people should have the choice to gamble online.
Rhetoric alone isn’t going to bring about change. But dialogue, coupled with key developments, could cause the U.S. government to loosen its rigid stance on this issue.
This debate is becoming more public. The L.A. Times recently ran an editorial saying it’s time for the U.S. to end Internet gambling restrictions.
The Poker Players Alliance, with its chief spokesman Alfonse D’Amato, is speaking out on the hypocrisy of banning Internet poker while not touching state lotteries, fantasy sports and horse racing.
The WTO made mention of this hypocrisy, pointing out that while the U.S. decries online gambling from a moral standpoint, it still permits off-track betting parlors which take wagers on horse races. D’Amato said it is ridiculous Americans can own a gun, but can’t use their computer to play poker online.
It’s expected that Rep. Barney Frank (D-Mass.) chairman of the House Financial Services Committee, will introduce legislation to repeal the Unlawful Internet Gambling Enforcement Act after the House returns from a two-week recess on April 17.
These aren’t the only developments brewing.
The U.S. has been very unhappy about China pirating copyright material such as movies, chemicals, information technology, pharmaceuticals, software, consumer goods, industrial products and books. Estimates of U.S. losses to Chinese copyright piracy range between $2.5 billion to $3.8 billion annually, according to the Office of the U.S. Trade Representative. There’s the possibility the U.S. could file a complaint with the WTO against China, which became a WTO member in 2001.
It certainly won’t help the American cause if they don’t comply with the WTO on Antigua. Never mind threatened trade sanctions, dealing with China is much more important. That’s what gets the U.S.’s attention.
So does China’s position as the next world power. The Chinese district of Macao has become one of the biggest gambling centers in the world, attracting millions of tourists particularly from the Asia-Pacific region. Macao’s emergence puts Las Vegas, with its extensive lobbying networks, into the Internet betting picture.
Some high rollers are now choosing to gamble in Macao rather than Las Vegas. To make up for these losses, name-brand Las Vegas hotels want to get into online gambling, which could make them more aggressive in pushing for changes in legislation.
Nevada representatives Shelley Berkley and Jon Porter both want to introduce a bill calling for an 18-month study of online gambling by the National Academy of Science.
It’s significant, too, that last week Las Vegas Mayor Oscar Goodman sent a proposal to NBA Commissioner David Stern telling him Las Vegas sportsbooks would not take down any NBA games if given a team.
The proposal read in part, “We would like to emphasize that Nevada’s regulatory system has a record of performance that should provide sufficient cause for the (NBA) to permit a franchise to exist comfortably in Las Vegas without concern for corruption or interference by unsavory individuals.”
Nevada has a top regulatory system. Now it’s up to the rest of the country to get with it. Developments these past couple of weeks could speed up that inevitable decision.