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Money Vs. Morals In UIGEA Showdown

The Unlawful Internet Gambling Enforcement Act was passed in 2006 as a way to supposedly protect American citizens from the multitudinous evils of online slots and other forms of casino gambling in cyberspace. Going into its third year of existence, the UIGEA’s ineffectiveness is beginning to be fully realized. Not only are U.S. citizens still gambling online, but now the government is making absolutely no money off it. The Bush administration looked at online gambling as a solely moral issue. Gambling is immoral, they reasoned, so it makes sense to take it away from Americans. Now, the Obama administration seems very likely to repeal this epically unpopular legislation in the face of nationwide economic crisis.

The fact is that online gambling is a goldmine. Rep. Barney Frank of Massachusetts has become the poster boy for internet gambling, having campaigned at full tilt against the UIGEA before it passed and fighting ceaselessly for its repeal for the past three years. Frank estimated that re-legalizing and regulating online slots and other forms of casino gambling could rake as much as fifty-two billion dollars in taxable revenues through the national economy. In these days of massive unemployment and state budget deficits ready to cross into eleven figures, that’s too much cash to be ignored.

All this is to say nothing about the fact that a prohibition on internet gambling makes no sense. Land gambling is legal in all but two U.S. states – online gambling is no different. Even if it were, it is not the government’s job to legislate morality.

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