In 2011, the U.S. Justice Department reversed the online gambling ban within the Wire Act so that it only applies to sports betting. This gave states the freedom to regulate online casinos and online lotteries within each state. While only three states have adopted online gambling – Nevada, New Jersey, and Delaware – many more are weighing the pros and cons due to its vast earnings potential in gambling tax revenue.
However, several members of congress, including Sen. Lindsey Graham (R-S.C.) and Rep. Jason Chaffetz (R-Utah) have introduced two bills that, if passed, would return the ban on online gambling.
They even have the support of conservative billionaire and casino owner Sheldon Adelson. The concern is that although online gambling successfully geo-targets to ensure that gamblers are from within the state they are gambling in, there is no way to regulate the age of gamblers. The concern is that children will begin gambling at a young age.
However, the National Governors Association (NGA) opposes the proposed ban, and on May 9th sent a letter to congressional leaders stating the reasons in which they oppose the ban.
Their primary concern is that the federal government is overstepping their bounds by making decisions that affect state regulatory authority. If decisions on this matter must be made, they need state input to maintain a healthy relationship between federal and state governments.
Along with the NGA, the Democratic Governors Association (DGA) also opposes the proposed ban on online gambling.
If the ban is reintroduced, there are millions of dollars at stake for the three states who have already introduced online gambling as well as the casinos who have invested millions in creating their online gambling regulations, and for the states in the process of moving forward with online gambling.
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