Crack Cocaine of Gambling Part 2
LIFE AFTER PROHIBITION? EVALUATING THE IMPACT OF PENDING U.S. LEGISLATION : PART 2
The average player is unlikely to sort through the legal nuances of the legislation that gets passed, and any implementing regulations. Therefore, even though these bills (in their current form) do not attempt to regulate player activity, players may become concerned about potential prosecution if they continue to place wagers online after passage of the legislation. This spin-off effect on United States player activity could be the most significant impact on Internet gamling businesses – yet it is one that is potentially avoidable or subject to significant mitigation by the industry. An educational effort must be immediately undertaken and funded by the industry’s leaders, trade groups, and media outlets. The moment a new federal online gambling law is passed, the industry must be ready with press releases, articles, speeches, blog postings, and any other form of communication necessary to communicate the precise impact of any pending legislation on United States player activity. If online betting is not prohibited by the new legislation, players must be immediately informed of that fact. Failure to do so will allow the rumor mill to generate significant misinformation, which plays directly into the hands of the
prohibitionists on Capitol Hill.
Direct restrictions on Internet wagering by United States citizens are unlikely at the
federal level, for a variety of reasons. First, the Feds typically seek to avoid these penny ante crimes of little economic or real world impact. Federal courts, prosecutors, and penitentiaries are reserved for criminals of a different stature. Moreover, as a matter of federal jurisdiction, a federal crime must involve some aspect of interstate activity or commerce. While all online transactions arguably involve interstate commerce, to one degree or another, it is unlikely that the United States Congress will seek to regulate the placement of bets by individuals using their personal computers at home, with little effect on interstate commercial activity. Such restrictions could be seen as intrusions into basic civil liberties, contributing to allegations that Big Brother is watching, and over-regulating our private lives. Accordingly, the likelihood of federal restrictions on player activity is remote.
Industry leaders remain hopeful that all forms of proposed prohibitionist legislation will
be defeated, and that lawmakers will recognize that Internet gambling has become a mainstay form of entertainment for United States citizens. Unfortunately, cooler heads do not always prevail, and the Internet gambling industry may soon be forced to accept some new form of United States federal legislation specifically criminalizing, for the first time, Internet gambling activity. As noted above, the primary effect of such legislation will be to drive the service providers further offshore, and away from the long arm of United States jurisdiction. But to counteract the disturbing potential secondary effect, in the form of United States player paranoia, the industry must unite in its educational efforts to clearly inform United States players as to the effect, or lack thereof, on their desire to continue engaging in recreational online betting.