Pros and cons for legalizing gambling
The gambling question: pros and cons PRO: Legalized gaming generates $16 billion a year in Canada, according to the latest economic impact research by the gaming association, a source of. "Gambling: A Controlled Substance" by William N. Thompson, August Thompson warns communities who are seeking economic benefits from legalized gambling . To get a handle on the pros and cons of legalizing online gambling, I talked to David G. Schwartz, director of the Center for Gaming Research at the University of Nevada, Las CASINO-BEST.TOP are.
The Pros and Cons of Internet Gambling
The Pros and Cons of Governments Legalizing Gambling in the Country
Nevada is the first state to make it legal for state residents to play poker online. It won't be the last, however. At least a dozen states are looking at Internet gambling as the latest means to replenish their coffers.
States got the official go-ahead to consider online gambling late last year -- two days before Christmas. Illinois and New York had asked the U. The DOJ ruled that neither the Wire Act a law that many believed precluded Internet gambling nor the Unlawful Internet Gambling Enforcement Act which makes it illegal for financial institutions to process payments for online wagers applies to lottery sales over the Internet. More specifically, the opinion assured states that so long as the gambling operator and the customer are within the same state and the betting activity does not include sporting events, a state's own laws apply.
That gives state legislators permission to pass Internet gaming laws. The temptation is the revenue. To get a handle on the pros and cons of legalizing online gambling, I talked to David G. Here are highlights from our conversation. What is the effect of the federal ruling that selling state lottery tickets online does not run counter to the Wire Act?
It clears states to sell lottery tickets online. More and more, people shop online so it makes sense to be able to buy lottery tickets online. But there is no hard data about whether this will grow revenue or shift it. People have a finite amount they'll gamble. Poker is 1 percent of all gaming revenue in Nevada. It's not a huge moneymaker for casinos, but it's a very popular, social game. If you could monetize that and move from social poker to playing for money online, that would be lucrative for states.
Online gambling is illegal in the majority of US states, but Congress has started reviewing those laws. Many states are also loosening the restrictions a bit. These changes affect every American and those with investments in US businesses because gambling always has an impact on the economy. Today there are a few betting sites in the US. The debates and voting for or against online gambling are some of the hottest topics today.
If you are wavering on whether to support legalized sports betting in the USA, consider the pros and cons for you personally. This industry might offer investment opportunities or simply a chance to gamble legally. On the other hand, the tax money might not get where they ought to go and gambling itself has risks. This business will also create competition for other entertainers and become a feeding ground for scammers. All in all, you must analyze all available information and possible outcomes.
The most important benefit of legalizing sports betting is money. Considering that taxes for gambling businesses are extremely high, that means a lot of money going to fuel the local economy. Legalized sports betting in the USA will also mean the creation of new jobs and numerous business opportunities for different companies.
These range from caterers serving lunch in offices to marketing agencies that will promote gambling websites. All this boils down to benefiting the economy and community as any business should. On the downside, legalizing gambling of any kind creates a risk of scammers and other crimes. The money that get into the local budget from gambling taxes might be allocated poorly.
There is no sure way to prevent that as politics are too complex and some politicians are too corruptible. However, a well-thought-out piece of legislation that spells out how the money can be used will go a long way in preventing abuse of these funds. As for frauds and other unsavory characters, who might try to take advantage from the lift of US gambling ban. The best way to avoid them is to deal only with trustworthy operators, like Bet USA.
Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. In , after years of political squabbling over whether Maryland should host casino gambling, the question came up before voters in a referendum.
The state government and the gambling industry lobbied hard for the votes, pledging that taxes levied on the gambling establishments would go to public education. The referendum passed. Maryland now has six casinos, including the Horseshoe Casino in downtown Baltimore, which opened in That same week, the Baltimore Sun reported that the casino money the state had promised for public schools is instead being siphoned to pay for other government expenses, such as salaries and roadwork.
As a result, Maryland schools have received the same amount of money they would have without the casino tax. And Baltimore schools have received less state money than they did before the casino opened. The casino pitch that Maryland voters went for in is one that was honed over decades, as one by one states agreed to host the gambling industry.
Though Nevada legalized casinos in , most states began to allow them in the s. To win support, casino boosters often emphasized that a percentage of these benefits from lotteries and casinos would be funneled directly into public education. Experts on gambling and state funding say that Maryland is only one of dozens of states taking gambling revenue meant for education and using it for other purposes. In the first year of operation, taxes from lotteries generally do go toward education, according to a study Pierce co-authored that looked at the period to But after a number of years, the practice of using the money for other expenses became commonplace.
State lawmakers welcome the lotteries and casinos for this very reason: The tax revenue gives them the flexibility to fund other programs or even cut other taxes.