The utilitarianism of government gaming laws in the United States

Randall M.

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The utilitarianism of government gaming laws in the United States

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Abstract

The current U.S. ban on sports betting goes back to 1961 when the federal "wire act" made the act of transmitting bets across state lines via the telephone illegal. The only state to offer legal sports betting has been Nevada. (Delaware and Oregon also have made attempts to offer sports betting on a limited basis) The 1961 law, meant to be a deterrent to organized money laundering, had no effect on the popularity of sports betting nationwide. From 1961 through the early 1980's the annual amounts of money wagered legally in Nevada, (and elsewhere illegally) has grown steadily. During the 1980's and 1990's the growth rate quadrupled. However, in 1994, a federal law was passed that prevented any further states from adopting sports betting that hadn't already done so.

The subjects of online gaming and sports betting are intertwined, with the sports betting industry seeing tremendous growth since the advent of the Internet. For many, online sports books, which are legal enterprises in their country or origin, have become substitutes to betting with illegal bookies.

Executive summary
Introduction
1. A brief history of gambling in the U.S.
2. Gaming as a subject of investigation
3. Background of this study
4. Review of literature
Public opinion
1. Current laws
2. Government tax
3. Social effects
Motivating factors
1. Moral traditions and modern values
2. Special interest groups
Effects of current law
1. Disenfranchisement of the poor
2. Low quality gaming experience
3. Black markets
4. Importing consumer gaming needs
Looking to the future
1. Benefits of new laws
Conclusion
Works cited
Appendix

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[...] New gaming laws that legalize sports betting and online gaming would create a range of benefits for society including: the elimination of illegal black markets in sports betting, the raising of tax dollars through a sports betting tax via U.S. based sports books, online sports books, and online casinos, the raising of revenues for U.S. brick-and-mortar casinos, the addition of a higher-quality gaming experiences. The changing of current gaming laws will probably evolve along the same time line as the Internet. [...]

[...] (Reforms involved prostitution, poker playing, federal taxation, voting, drinking, and government well-fare) However, as travel and recreation became more popular during the middle part of the century, gaming in the U.S. enjoyed a comeback. Las Vegas was little more than a train depot until the 1930's when it was further developed to be gambling destination and vacation getaway. (Initially for people living in Los Angeles) By the 1950's it had grown to be a world-class resort and entertainment center. It was during this time that wagers on sporting events began to be offered by sports books in Nevada, though sports betting (Especially on baseball games and boxing matches) via private bookies had been going on since the late 19th century. [...]

[...] Indian casinos, introduced in 1994 when the federal government enacted the Indian Gaming Bill, have further provided competition to the horseracing industry, which in recent years has seen the installation of video poker machines at many tracks in order to attract more visitors. Black Markets Illegal sports betting are similar to alcohol consumption (Prohibition) in that is difficult to totally outlaw, and thus, another result of U.S. gaming laws has been the creation of a sports betting black market. For many years the relatively small size of this market kept it hidden from the mainstream population. [...]

[...] (DRAWING A LINE IN THE SAND: HOW THE FEDERAL GOVERNMENT CAN WORK WITH THE STATES TO REGULATE INTERNET GAMBLING. Emory Law Journal, 777-813.) Rose (2007) shows The Unlawful Internet Gambling Enforcement act of 2006 was hurried through Congress by the Republican leadership in the final minutes before the election period recess. This source provides information regarding how the federal government has tried to stifle online gaming by thwarting credit card transactions to online casinos. (Gambling and the The Unlawful Internet Gambling Enforcement Act of 2006 Analyzed. [...]

[...] Many argue that current gaming laws do little more than fuel an ever- expanding black market, (illegal betting with bookies and online wagering deemed illegal by the U.S) resulting in a limited number of legal choices for the gaming consumer, most of which are heavily taxed. Those who stand to benefit from new gaming laws would include online gamblers who bet illegally, (With bookies and online sports books) those whose participate in gaming that is heavily taxed, (Lottery, horseracing) and those not close to an Indian casino, (or NJ & NV casinos) and whose only choice is to deal with an unregulated, offshore casino. [...]

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