Gambling Laws – Are they effective?

It was interesting to take note of reports that Anurag Dikshit, one of the founders of PartyGaming Plc, has agreed to pay $300 million to the US government, for transgressing the Unlawful Internet Gambling Enforcement Act (UIGEA). PartyGaming Plc operates Party Poker, an online gaming company offering online poker and casino games.

The UIGEA was passed in 2006 and prevents the transfer of funds from banks to internet gambling sites. The law has created much confusion, amongst online poker players, about the legality of playing online poker. Many online poker rooms do not allow US players to sign-up.

But does the law achieve its aim of trying to protect US citizens from the vices of online gambling? People will always find a way around the law to the nearest online casino, to get their daily fix, be it at Texas Holdem or Omaha. Policing the law is difficult; the internet provides many loopholes. Responsibility is passed onto the banks, but can they really track each payment to prevent transactions between individuals and gambling sites?

Surely the issue is more about encouraging responsible gambling, rather than trying to enforce a complete ban. Some people will be prone to the negative aspects associated with gambling and will find a channel for their habits, despite the barriers put in place. This minority should be singled out, prevented from gambling and counseled. Responsibility should be given to the gambling institutions to prevent the harmful affects of excessive gambling.

Wouldn’t the taxes from a responsible gambling system be sufficient, rather than penalizing entrepreneurs? A portion of the taxes could used to prevent the harmful affects of gambling and for policing the system.

Has the UIGEA achieved its aim and has it been effectual? Who knows? But certainly “Freedom of choice” rights have been curbed.

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