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Despite the fact that there are well over a thousand of the best online casinos offering internet gambling to customers in the United States, online gambling is illegal in the US. However the US government legislators, regulators and law enforcers have been helpless in the face of the rapidly growing online gabling industry and the marketing efforts of several of the best online casinos, poker rooms, sportsbooks and internet gambling lounges from operating and advertising.
More than half of all wagers placed online worldwide come from customers in the United States; however the majority of best online casinos and gambling rooms are based in other countries. This places the servers completely outside of United States jurisdiction and leaving their operators out of reach of United States law enforcement operatives.
As the United States government has virtually no power to prosecute or enforce laws on operators of internet gambling sites that are based outside of the US, the US Department of Justice’s Organized Crime and Racketeering section is now focusing on prosecuting advertisers and ad-publishers working in collaboration with the best online casinos to promote the illegal gambling on US soil.
Starting with a campaign against the biggest advertisers of best online casinos, in order to get the message across that internet gambling and best online casinos will not be tolerated by the United States government. The new anti-internet gambling laws will branch out to include any funds generated by best online casinos as well as gambling advertising and participation in affiliate programs by non-gambling companies.
The first company to face prosecution was the website Sporting News, owned by Paul Allen, co-founder of international software giant Microsoft. Sporting News came to a settlement of $7.2 million with the Department of Justice in order to avoid prosecution for advertising best online casinos and other internet gambling companies on its website as well as ads for best online casinos on its syndicated radio show in 2002 and 2003.
The agreement saw Sporting News paying $4.2 million in revenues from gambling ads as well as agreeing to run $3 million in anti-gambling advertisements over the next three years.
Best internet casinos and other online gambling sites generate an estimated $12 billion every year, a figure that is rising rapidly, especially since the growth in popularity of online Texas Hold’em Poker offered by all the best online casinos and internet poker rooms.
The US Department of Justice now considers advertising for best online casinos and internet gambling to be aiding and abetting illegal activities, and will act to prosecute as such. This will put added pressure on the majority of best online casinos, with a large proportion of their revenues coming from customers brought in by advertising in the US.
Best online casinos pay high revenues for websites that carry their advertising, even offering companies a percentage of income raised from gamblers that came to the best online casino’s site through an advertisement link.
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The American Gaming Association (AGA) this week announced that it is in favour of the creation of a US Congressional commission to study the merits and detriments of allowing honest online casinos to operate under regulation in the US.
The move comes as a surprise to many honest online casino operators and gambling industry officials, as the AGA, which is the representative body for America’s land-based gambling companies, has for a long time kept to its stance of neutrality on the issue of honest online casinos.
The president of the AGA reportedly stated that the association is now strongly pushing for Congress to create an evaluation commission to study the real effects of honest online casinos and to put forward recommendations as to whether internet gambling and honest online casinos should be outlawed or not in the US.
President and Chief Executive of the AGA Frank Fahrenkopf Jr. reportedly confirmed that last week’s board meeting had come to the resolution that the association will strongly support a year-long Congressional commission to study and evaluate the impacts of online gambling.
Until now the AGA has remained staunchly neutral on the issue of honest online casinos, and has declined to offer any comment on pending legislation regarding the issue of internet gambling, such as new bills on the table that will make internet gambling illegal in any form.
The AGA’s about-turn could have the effect of impacting current moves to ban honest online casinos in the US, with the findings of any independent investigation projected to be extremely influential on legislative bodies. This could lead to a positive outcome for the push to create blanket legislation, something that has been proving difficult in recent times.
Part of the difficulty is that while the US Department of Justice maintains that all internet gambling and honest online casinos are illegal in the US, it still allows for interstate betting on horse races, a contradiction kept in force largely due to the strong lobbying power of American sports betting associations. Not only that, honest online casinos are currently a $12 billion industry worldwide, half of which comes from US clients. All of this $6 billion is going untaxed out of the US, and the Department of Justice has, so far, been largely helpless in stopping the flow.
The new shift in the AGA’s stance could ultimately lead to trusted, big name American honest online casino brands beginning a regulated US internet gambling market.
Issues the commission should take into account when considering honest online casinos, include protecting children from gambling and problem gamblers, as well as considering the feasibility of effectively legislating honest online casinos in the US.
Another consideration is that recent rulings passed down by the WTO regards the US’s position regarding honest online casinos is in violation of international trade laws.
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