Yesterday the hearing for legalization of online casino gambling took place in the House Financial Services Committee in the U.S.. Experts in the field of online safety, consumer protection and online gambling told the committee why regulated Internet gambling and consumer protection ensures the security of online transactions. Chairman Barney Frank introduced the Internet Gambling Regulation, Consumer Protection Enforcement Act, which the hearing is about. The hearing emphasized the success of existing systems and technologies in blocking minors from gambling online, prevent problem gambling, and protecting consumers against money laundering, fraud and identity theft.
Parry Aftab, managing director of Wired Safety, the largest Internet safety and help group concluded in its statement that regulation of online gambling is the best way to protect consumers. She said: “The status quo offers no meaningful assurances that consumers will be protected, there are a number of technologies routinely used in other industries that were easily adaptable to online gambling sites. They are real, proven and in use today. They are also improving by the minute.”
An extensive study by Professor Malcolm K. Sparrow of the JFK School of Government of the Harvard University, was introduced at the hearing and enhanced benefits for consumers through regulation. In the study called, “Can Internet Gambling Be Effectively Regulated? Managing the Risks” Sparrow says that the establishment of a regulated industry under U.S. jurisdiction would provide much better protection against potential social harm rather than simply to ban online casino gambling. The combination of thought through laws with education, technological tools and support seems the most effective way to reduce the risks of online gambling in the United States. Then U.S. consumers will be better protected than now.
Michael Brodsky, CEO of Youbet.com a provider of online horse racing said that existing technologies can be used successfully to regulate Internet gambling. He said in his statement: “Today at Youbet we use technology that would ensure effective regulation of Internet gambling. The already-existing, totally legal, online pari-mutuel horserace wagering industry is a U.S.-based model of how to provide a responsible online wagering experience for adults, one that is clean, regulated and scrupulous about both collecting and paying taxes.” While online betting is generally prohibited, Congress has accepted that small local businesses are allowed to accept bets on horse races.
The testimony from the Executive Director of the National Council on Problem Gambling, Keith Whyte, said how online technology can be used to combat gambling addiction in a better way than in the land based casinos. The graphical and interactive structure of the Internet offers the opportunity to develop informed consumers with access to a variety of information designed to encourage safe choices and discourage unsafe behaviour. The number of online information and possible interventions are essentially unlimited. ”
The only negative sounds came from the corner of the Indians, Robert Martin, director of the Morongo Band of Mission Indians, said the legalization will do nothing but legalize off-shore companies at the expense of jobs in the U.S. As tribes are restricted to offer gaming only from indian lands, we will be at a competitive disadvantage relative to all other non-tribal gaming interests and the current law, the UIGEA, provides a constructive pathway for those who wish to offer in Internet gaming on a state by state basis, and the law should be given time to become effective in its own right.
The hearing and statements left Congress with many possibilities to regulate online gambling, too long internet gambling has lived in the underground market. Our hope is that Congress will not take too long to vote on the bills of Barney Frank.
Click here for the video and statements of the hearing.
