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US Control Law Doesn’t Stop Online Casino Companies

Although the Unlawful Internet Gambling Enforcement Act caused many all over the world to believe that online casino gaming was dead for US residents and American online casino fans, some experts say that it only gave strict regulation orders concerning the process by which funds are transferred from online casinos users of the online gambling sites to the offshore companies which operate and own these Internet gambling portals. Technically, it did not deem the practice of online gambling illegal or in any way breaking the law.

‘The industry is squandering an opportunity as the only legal provider of Internet gaming. We have a golden opportunity in our hands,’ said Greg Avioli, acting CEO of the Natioanl Thoroughbred Racing Association and Breeders’ Cup Ltd. The law, which only discusses the transfer of monies regarding the online casino industry, says nothing about outlawing horseracing. Handicapping horse races certainly resides in a similar area of gray, but the recent legislation grants it special status by stipulating that unlawful online casino gaming ‘shall not include any activity that is allowed under the Interstate Horseracing Act.’

That act, which was signed into law in 1978 and amended in 2000, sanctions the transfer of pari-mutuel bets between states through telephone or other electronic means. The new law faces this major stumbling block of the 1961 Wire Act, which prohibits sports betting over telephone lines. Forty-five years ago, the Internet and online casino gaming did not exist, and during the past decade regulators and legislators have looked the other way while online casino gaming was allowed to grow into a multibillion-dollar industry.

Avioli’s suggestion was for the online casino industry to unify and create a single online casino site to bet the races. This is something the giant American-based online casino companies would aspire to do concerning online gambling, but this will only happen if and when politicians ever become serious about regulating and legalizing online casino gaming as a source of tax revenues instead of allowing it to run rampant in an unregulated world.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.