Online Gambling, Casinos to ‘Sweep’ U.S. in 2012
Gambling is seen as a painless tax, involuntary tax so it is an easy way to raise revenue without raising real taxes.”
“States are looking to maximize revenue from gambling, but they also need to minimalize the social costs,” Whyte said.
On Friday, the Justice Department reversed its previous stand on the 1961 Wire Act – saying that it applied to sports betting but not online gambling – after years of hunting down online casinos like the billion-dollar-plus Full Tilt Poker.
Rick Bronson, chairman of U.S. And in Illinois, there are hopes that online tickets will increase sales for the lottery.
“We are about to see this explosion of Internet gambling sweep across the nation,” he said. Nelson Rose, Whittier Law School professor and expert on gaming law, called the Justice Department move a “major Christmas present for the Internet gambling community.”
In fact, Washington D.C. Kentucky’s Gov. and Nevada are already poised to start online gambling, mostly poker. In New York, the governor is pushing for the legalization of casino gambling.
Bronson of U.S. Digital Gaming estimated that tax revenue for the states would be about 25 percent. Steve Beshear is pushing for expanded gambling in his state. “All we’re seeing is every single state proposing more and more legal gambling. Digital Gaming, said the change would give states the ability to legally operate online gambling beginning with poker and also sell lottery tickets on the Internet.
“It’s money and [states] can’t raise taxes anymore and they can’t cut services anymore so they need a way to raise money and gambling seems to pay more tax,” Rose said.
Keith Whyte, the executive director of the National Council on Problem Gambling, said there were a half a million youth ages 12-17 with gambling problems.
He said that youth were already gambling online and that the industry was not doing a good job preventing it.
Image credit: Karen Bleier/AFP/Getty Images
This would be good news for Florida, where lawmakers are set to consider a measure to bring three casino resorts to the southern part of the state.
Forget the monkey or the rooster, 2012 could be the year of the gambler and experts say that while that would mean more money in states’ pockets, it could also put young people and adults at further risk of addiction.
I. He said online gaming would likely bring more visitors to casinos.
According to a 2010 Morgan Stanley report, analysts said that allowing Internet gambling could bring in $5 billion.
“In some ways, we’re concerned that when these existing industries expand [under the new Justice Department rule] they’re going to do the same shoddy job of enforcing that they’re already doing,” Whyte said.
He said that poker would likely generate $12 billion a year in revenue for states and that the lotteries – already a $60 billion to $70 billion business – would continue to grow.
Regarding Internet gambling, Rose said states would have to require strict regulations to prevent gamblers from becoming addicts and to ensure that minors do not participate.
He advised states looking to jump into online gambling to first do a study on the current rate of gambling addiction among youth and gambling adults to see whether there would be a spike.. ..
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