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The Looming Battle Over Online Gambling

Kadin2048 writes "According to an recent Ars Technica article, the US is headed on a 'collision course' with the WTO over off-shore Internet gambling, if a bill currently in the House of Representatives passes. The 'Internet Gambling Prohibition Act,' (PDF) which updates the 'Wire Act' to prohibit Internet gambling regardless of whether the servers are located in the US or outside of it, is in direct contravention of a WTO ruling. Proponents of the bill claim that it was narrowly defeated in previous incarnations due to the influence of disgraced lobbyist Jack Abramoff. However it seems as though some of Abramoff's biggest clients -- brick and mortar casinos -- are really the big winners from passage of this bill, since it does not prohibit gambling in person, only online."

47 of 245 comments (clear)

  1. I wouldn't... by Galston · · Score: 5, Funny

    I wouldn't bet on this ending nicely at all.

    1. Re:I wouldn't... by TedCheshireAcad · · Score: 4, Funny

      Come on, I'll give you 3 to 1 odds.

  2. What? by voice_of_all_reason · · Score: 2, Insightful

    The 'Internet Gambling Prohibition Act,' (PDF) which updates the 'Wire Act' to prohibit Internet gambling regardless of whether the servers are located in the US or outside of it, is in direct contravention of a WTO ruling.

    I think this act violating some funny acronym takes a backseat to the idea of every nation's own soverignity.

    1. Re:What? by jfruhlinger · · Score: 4, Insightful

      Yeah, except that our elected govt. signed the treaty and now has to play by the rules we agreed to. We could always pull out ... the WTO can't make us play by their rules, but they can kick us out of the club if we don't.

      Which would be bad, since we benefit from being in the WTO in about a kajillion ways, mostly involving telling other countries how to run their economies. Or does your idea of "national sovreignty" only apply to the US?

      jf

    2. Re:What? by ClamIAm · · Score: 2, Insightful
      Not to be an idiot or anything, but the US basically *is* the WTO. We can break whatever rules we want with limited consequence.

      Not really. Remember when the US wanted to ban tuna that might have the nasty side effect of killing off dolphins? Under the current WTO rules, you can't ban a product on the grounds of how it's produced. This means that you can't ban something because child labor was used to make it, or slave labor, or anything else.

      What the WTO does do is act as a LEGALLY ENFORCABLE arm of the most powerful people and corporations in the world. If your nation pulls out of the WTO, all other WTO countries can be required to stop trading with you. There's little to no oversight, and those who represent their countries are nearly always appointed by those in power.

      Also, the WTO, World Bank and IMF have a pretty incestuous relationship. They often require poor countries who request aid to allow WTO-style outside investment and promises to not give much power to unions and other organizations. If you've ever wondered about the reality of a board of shadowy figures that are in charge of everything, try looking at these guys.

  3. Gimme a break! by gasmonso · · Score: 5, Insightful

    This is sponsored by US casinos that are losing business to online ones. Instead of pushing through bs legislation, they should have to compete by making their own casinos online. Yet another example of "bought" legislation that serves only the good of corporations.

    http://religiousfreaks.com/
    1. Re:Gimme a break! by mrchaotica · · Score: 4, Insightful
      Instead of pushing through bs legislation, they should have to compete by making their own casinos online.
      Apparently, though, they can't because they're located in the US and it's already illegal for them to do it (that's what that "Wire Act" thing is). This new bill is about making it illegal to gamble at online casinos located outside the US, which only levels the playing field.

      I think the best solution, though, is just to repeal the laws against gambling here, along with all the other laws that try to protect people against themselves. If they want to do something stupid, I say we let them!
      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    2. Re:Gimme a break! by cayenne8 · · Score: 3, Interesting
      "Instead of pushing through bs legislation, they should have to compete by making their own casinos online."

      I agree....if they could/would bring their casinos online, especially the major ones in Vegas and Atlantic City...they could really pull in US gamblers I'd think.

      Since they are overseen quite well by their city's gaming boards, people could feel more comfortable that they were 'honest' games online.

      I'd certainly feel more comfortable playing online Texas Hold'em with say, Harrah's online, than some place offshore....if I were so inclined to do something like that.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    3. Re:Gimme a break! by zulux · · Score: 4, Insightful

      If they want to do something stupid, I say we let them!

      I agree! But unfortunatly, the same people that would gamble their future away are the same types of people that won't accept responsibility for their own actions.

      I'd be all for legalizing gambeling, drugs and protitution --- if the people who engaged in such behaviour diden't keep asking for goverment handouts.

      --

      Moneyed corporations, non-working 'poor' and criminal prisoners are turning productive citizens into tax-slaves.

    4. Re:Gimme a break! by jafiwam · · Score: 2, Insightful

      Actually, one of my major reasons for NOT gambling online is the offshore nature of the servers.

      If it were some American casino online, I might do it. Just because if they get hacked/defraud me there would be at least SOME recourse.

      Whereas I will never ever go to Vegas to gamble in person because well... that would be admitting I want to. I would spend $5 here and there online, but don't want to go to Vegas for it.

      So they'd win if they could do online versions legally in the US.

      Of course, that stupid puritan ideal cropping it's ugly head up puts a stop to that....

    5. Re:Gimme a break! by Tweekster · · Score: 2, Insightful

      Give me a break, this legislation is stupid, but come on, do you honestly beleive a Casino is losing out to the online version... right. and apparently you have never been to vegas. The casino experience isnt about gambling.

      --
      The phrase "more better" is acceptable English. suck it grammar Nazis
    6. Re:Gimme a break! by Jason1729 · · Score: 2, Insightful

      That won't end well.

      Go to Wikipedia and look up "French Revolution" to see some prior art for your idea.

    7. Re:Gimme a break! by Traa · · Score: 2, Interesting

      If you remove the safety net, some people will indeed learn and take care of themselves. However a LOT of people will not take care of themselves and hurt themselves, their family and perhaps you (through crime/desease/poverty you name it). That is the nature of people.

      Now if you still think that this suits you fine, then "Welcome to America" ;-)

      Personally I am inclined to say that certain safety nets that protect people against themselves or each other builds a healthy society.

    8. Re:Gimme a break! by geekoid · · Score: 3, Informative

      well, as a tech employee who was out of work for 9 months, I thank god we had welfare, otherwise we would have lost everything.
      Just for your info, whiole out of work, I spent 30 hours a week minimum doing something that directly involved finding another job.

      Contrary to the republican mantra, a very small minority of welfare reciepents abuse thr system. Point in fact, most people on some sort of assistance work full time jobs.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  4. RE by Alex+P+Keaton+in+da · · Score: 4, Interesting

    Call me cynical.... But I think that the Bricks and mortar casinos give enough money to politicos that there is not a snowballs chance in hell that online gambling will be legal.
    Also, Online, offshore gambling is tough to tax. If the government can't tax it, they will outlaw it...

    --
    And All I Ask is a Tall Ship And a Star to Steer Her By
    1. Re:RE by TubeSteak · · Score: 4, Insightful

      Okay Mr. Cynical, what you don't seem to comprehend is that while yes, the United States can blow off the WTO, there will eventually be consequences.

      The WTO will probably pick out an important U.S. export industry and apply some trade sanctions to it.

      It works.

      The United States has backed down to the WTo before and they'll do it again. So, while "the wto-is-only-good-when-its-convenient", they also have means to enforce their will.

      --
      [Fuck Beta]
      o0t!
    2. Re:RE by nero4wolfe · · Score: 2, Informative
      Just for background, here's a few areas where the US already has had to change laws to comply with WTO rules:

      At one time, there was a push to regulate the tuna industry in the US to minimize or eliminate accidental dolphin and porpoise catches. The Mexican tuna industry protested to the WTO; the WTO ruled for them, and the US "safe tuna" laws disappeared.

      At one time, there were rules prohibiting the importation of some high-sulfur oil. Venezuala (iirc) protested to the WTO. Those rules disappeared.

      The US congress has tried multiple times to give special tax protection to some export industries. Other countries protested to the WTO. The WTO ruled for the other countries.

      I think there are a few more examples.

      An anecdote back from when the WTO treaty was passed in the US... The same comments about the WTO treaty possibly impinging on US sovereignity were being said then. The Clinton administration used the typical constitutional end-run for a controversial treaty; instead of following treaty ratification rules in the constitution, they called it an agreement. Then they pushed a bill through a lame duck session of congress saying that the US would follow the agreement. (This circumvents an otherwise required super-majority vote in the US Senate).

      To get at least minimal Republican support for the bill, Clinton promised Dole that the WTO agreement could be brought up again if the WTO ever overruled 3 US laws. That point was reached years ago.

  5. Consolidate it all by ThisIsForReal · · Score: 4, Interesting

    Consolidate the whole world into the Extended USA. Then legalize everything: gambling, drugs, prostitutes, ripping CD's into MP3's (just kidding, that should always be illegal). Then tax the hell out of the whole thing, and reduce us all to serfs working and toiling for "the man", which is now a single ruling body over everything.

    Everybody will work towards Friday under oppression, then celebrate the weekend by gambling, doing drugs and girls, and then listening to illgotten music (just kidding about that one). Problems solved.

    Ahh, gambling. The cause of, and solution to, all of life's problems.

    --
    -THE END-
  6. Is this the SAME Congress by bherman · · Score: 5, Interesting

    That was telling google et al to locate their servers offshore to avoid China asking for information from them or asking them to filter content in their search engines......which is it????
    I hate this Congress.....they claim that it would be ok for us to do to another country, but not to our own. I guess their mothers never taught them the golden rule. "Treat others as you want to be treated"

    Screw them.

    --
    Error: Sig not found.
  7. Change is coming in Ontario as well by Tom+Courtenay · · Score: 3, Informative
    --
    If you could be anything you want, I'll bet you'd be disappointed.
  8. solution. by blue_adept · · Score: 3, Insightful

    prohibit Internet gambling regardless of whether the servers are located in the US or outside of it

    Obviously this only applies to corporations and businesses incorporated in the US. Solution? Online gambling companies will simply incorporate on whatever island their servers are hosted, and shut down their US branches.

    You don't have to be a US company to take US money.

    --

    "Is this just useless, or is it expensive as well?"
  9. 30 MILLION dollars to fight gambling? by acaben · · Score: 4, Insightful
    That's the real kicker in this proposed bill. They want to spend $30 Million over the next 3 years to fight gambling. Great, add that to the DOJ's war on porn, and perhaps sometime in the next 20 or 30 years we can go back to looking for Osama Bin Laden. Once all that porn and gambling is stopped. Priorities, people, prioties.

    And, even though I'm disgusted by the money they want to spend on this, I'm more disgusted that the "personal responsibility" party (repubs) and "keep your government out of my bedroom" party (dems) both think that gambling is something they have the right to regulate. Do some (dumb) people become addicted to gambling and spend their life savings? Yes, and they deserve to lose that money. Just because there are a few people unable to think logically about their actions doesn't mean we should prevent the tens of millions of people who enjoy the thrill of a weekend in Vegas or Party Poker from doing so responsibly.

    1. Re:30 MILLION dollars to fight gambling? by AuMatar · · Score: 2, Interesting

      Great, 30 million on this shit. Here's a far better idea- legalize online gambling. Tax it. Regulate it so that we can be sure the RNG is fair. Force casinos to put a small percent of profits twoards rehabilitation for those who truely have problems, and let those of us who can control their gambling have fun playing a game of poker now and then.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    2. Re:30 MILLION dollars to fight gambling? by TopShelf · · Score: 2, Insightful

      I'm amazed the federal government would want to "fight gambling". If they succeeded, what would all the states do that rely on lottery income???

      This is beyond stupid, it's blatant pandering to a lobby at the expense of, oh, just about everyone else. Far better would be to legalize, legitimize, and tax online gambling and turn the US into a provider of those services instead of a consumer. In the increasingly global marketplace, an international online casino operated out of the US would, in economic terms, be considered an export industry. Instead of writing a law that completely violates WTO guidelines, why not take advantage of the new world order and actually strike a blow to help restore a balance of trade.

      To put it another way: we all know the real winner in the gambling industry is the casino. We also know that Internet gambling is a huge and booming industry. Does the US want to be on the winning side of that development, or not?

      --
      Stop by my site where I write about ERP systems & more
  10. They will never learn. by BigZaphod · · Score: 3, Insightful

    Personally, I think gambling is a waste of time - but that should always be the choice of the person doing the gambling. Sure, it can ruin lives and mess up families - but dammit, that's THEIR problem! I should be free to spend $2.00 online gambling every now and then if I were into that sort of thing. The more the government attempts to baby the public the weaker we become. Our society is going through a massive pussification and I just can't see it ending well.

    1. Re:They will never learn. by Deadstick · · Score: 3, Interesting
      Sure, it can ruin lives and mess up families - but dammit, that's THEIR problem!

      On April 15, it's YOUR problem.

      rj

  11. Poker Players Over Here To Unite by cybrpnk2 · · Score: 5, Informative

    Time to join the Poker Player Alliance, which has been specifically formed to fight legislation like this. Besides, they've got a pretty neat T-shirt.

  12. Re:Schitzoid nation by mrchaotica · · Score: 2, Interesting
    brick-n-mortar gambling interests inside the U.S., gambling is okay (in person)
    But it's not okay in person, except in a few states, as well as Native American reservations (which have special legal status) and casino ships (which go to international waters). In other words, they want to stop online gambling because they want to stop gambling entirely, and it's the one loophole in existing law.
    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  13. Re:Bets 'n Boobs by RembrandtX · · Score: 4, Funny

    I beg to differ. All across the world people get 'worked up' over boobs.

    Its just that in the U.S. thats what people object to :P

    --

    --Ne auderis delere orbem rigidum meum, non erravi pernicose!
  14. Just call it futures trading... by srussia · · Score: 2, Funny

    ...and there you go, instant legal online gambling.

    --
    Set your phasers on "funky"!
  15. Re:Schitzoid nation by AuMatar · · Score: 2, Informative

    Most casino ships are riverboats. They aren't going in international waters. Hell, very few of them even go in interstate waters. A few of them went in the Mississippi to avoid state laws, and then other states picked it up as a convenient excuse for partial legalization.

    --
    I still have more fans than freaks. WTF is wrong with you people?
  16. Over-protection by RyoShin · · Score: 4, Insightful

    Protect me from murder.

    Protect me from rape, from robbery, from bodily assault.

    Protect me from corporations swindling me.

    Protect me from bodily damage from others.

    But, please, stop protecting me from myself. I can protect me from myself just fine without the government jumping in with a few choice words.

    If you're so concerned about those too incompetent to protect themselves from themselves, find a way to either educate them or allow them to continue down their self-destructive path without taking out others along the way.

    It's good that you care for those types. (Someone has to.) However, restricting me because a small minority can't restrict themselves is not right.

    And if you're doing this because of some moral high ground, go jump off a bridge.

    1. Re:Over-protection by pyro101 · · Score: 2, Insightful

      The problem is that when people go and lose their life's savings/house due to an addiction we have a choice of either letting them die in gutter in a puddle of their own urin or supporting them by some means whether it be private or state funded either way it hurts society. In our free nation we allow most obnoxious and destructive behavior until it begins to cost society instead of just the stupid individual. ie you can buy a large chunck of land build a bridge and jump off it but you can't go to a public on and jump off. Or if you would rather jump off somebody else's bridge they are held liable for your injuries.

    2. Re:Over-protection by UnanimousCoward · · Score: 2, Insightful

      It's not as black-and-white as you paint it. There's a reason gambling is restricted in this country to a few designated places and it's PRECISELY to protect you from murder, rape, bodily assault, etc. YOU might be smart enough to to gamble away your life savings, but the government is trying to protect you from those that will and then resort to desperate measures.

      And if you think it's cheaper to educate than restrict (AND assume the educating will work), you're living in some fantasy society.

      --
      Twelve-and-three-quarter inches. Unyielding. This wand belonged to Bellatrix Lestrange.
    3. Re:Over-protection by radish · · Score: 2, Insightful

      It's not as black-and-white as you paint it. There's a reason gambling is restricted in this country to a few designated places and it's PRECISELY to protect you from murder, rape, bodily assault, etc. YOU might be smart enough to to gamble away your life savings, but the government is trying to protect you from those that will and then resort to desperate measures.

      Which would make perfect sense if the other countries of the world in which gambling is legal (hint: most of them) were more violent and dangerous than the US (hint: most are not). Even taking the US example, it would make sense if Atlantic City and Vegas were super dangerous violent places compared to cities with no gambling like LA, Detroit and Miami (hint: they're not).

      I see no evidence for a causal relationship between gambling and widespread violent crime.

      --

      ---- Den ene knappen er powerknapp, den andre er Bender voice knapp "Bite My Shiny Metal Ass"

  17. Only WTO problem if only blocking *foreign* sites by Ossifer · · Score: 2, Interesting

    The WTO does not claim to impose or dismiss national controls over its populace--it only seeks to maintain a level playing field between countries--that you cannot place burdens on foreign competitors in order to protect the companies in your own country from foreign competition.

    The bill banning US citizens from using *all* net gambling sites does not violate WTO rules, as it treats all countries' sites equally.

  18. Gambling is for Suckers by Braxton_the_Covenant · · Score: 2, Insightful

    I understand why a government might illegalize casinos, lotteries, and betting, since it is a pernicious vice that many men are drawn into, wasting incalculable amounts of their personal savings in a futile effort to beat the house advantage. So that's fine with me. However this US law is written by the casino special interests and does not have as its end the illegalization of gambling en toto, but merely the prevention of foreign competition in the 'industry'. What outstanding hypocrisy. The world trade body is right to condemn this blatant protectionism by the Americans.

    Obligatory Wikipedia link: http://en.wikipedia.org/wiki/Free_Trade

  19. The big casinos want a monopoly in exploitation. by Futurepower(R) · · Score: 2, Insightful

    It is not about regulating morality. It's about money and government corruption. The big casinos want a 100% monopoly in exploiting the human weakness that causes people to gamble.

    Gambling casinos don't gamble. If you play enough, you will ALWAYS lose.

    If you play enough, there is no chance in casino games of chance. If you play enough, the end result is ALWAYS 100% determined. You will ALWAYS lose exactly the percentage the casino decides you will lose.

    --
    Before, Saddam got Iraq oil profits & paid part to kill Iraqis. Now a few Americans share Iraq oil profits, & U.S. citizens pay to kill Iraqis. Improvement?

  20. They can't repeal the laws here. by tlambert · · Score: 3, Interesting

    They can't repeal the laws here.

    If they did, then they'd have to actually address the issue of which state the transaction on the Internet takes place in: the buyers state, or the sellers state.

    They don't want to do that, because in doing so, they either have declare the transaction takes place in the buyers state - and limit online gaming to people in physical locations where it's legal to gamble - or the sellers state - and render illegal all those state laws regarding "use tax".

    They can't limit it to the buyers state, because if they do that, there's no way to tax it or prove what state the buyer is actually in at the time of the transaction, because there's no geotracking information associated with Internet connectivity.

    They can't limit it to the sellers state, because if they do that, there's no way that an online seller is going to be able to collect the tax on behalf of 50 states, Midway, Guam, the U.S. Virgin Islands, Puerto Rico, and the District of Columbia, and they effectively squelch a large part of the economy.

    Sowhat the Wire Act enables them to do is to stick their collective heads in the sand and pretend that there's nothing to see here, and that people who buy things on the Internet are paying their local used tax, and that sellers in the same state as the shipping address are collecting and forwarding the state sales tax to the state they are located in.

    This basically lets them ignore the whole problem that derives from having non-uniform state tax laws for a little while longer.

    From the point of view of someone who occaasionally makes purchaes over the Internet, I have to say that I actually approve of this tack; I'd hate to have to provide strong identification couple with strong locality information, just to access the Internet, "just in case" I decided to try to buy something online.

    -- Terry

  21. definition of "Tabled" by Bishop · · Score: 2, Informative

    In Canada and England tabled means "present formally for discussion or consideration at a meeting." In the USA tabled means "postpone consideration of." Yes it is confussing.

  22. What about gambling in MMORPGs? by FleaPlus · · Score: 4, Interesting

    This makes me wonder what the legality will be (or is) of gambling in MMORPGs and other virtual realities, particularly those like Second Life where in-game items and currency can be bought and sold with real-world money. If you make in-game gambling illegal, that seems like an unreasonable (and perhaps unconstitutional?) constraint placed on creators of games. On the other hand, if in-game gambling is legal, that's a pretty big loophole for the "evils of gambling" to get through.

    On that note, couldn't all for-pay MMORPGs be considered a form of gambling? Players pay a certain amount each month, and there's a certain chance that you'll be able to accumulate in-game items which can be sold for real-world money. There's of course an entertainment aspect to the game, but there's also an entertainment aspect for going to a casino.

  23. Regulation? How about Open Source instead by imgunby · · Score: 2, Insightful

    Not to sound too paranoid, but I care a helluva lot more about the accuracy of the software than I do about if it's legal or not (same could be said for any number of vices, but I'll stick to this one). At least in the physical world, there are a lot of physical mechanisms in place to prevent being [too] taken by the house. Can the same truely be said of the online casinos?

    1. Re:Regulation? How about Open Source instead by bnenning · · Score: 2, Informative

      At least in the physical world, there are a lot of physical mechanisms in place to prevent being [too] taken by the house. Can the same truely be said of the online casinos?

      Yes, perhaps even more so. For example, in online poker you can save the history of every hand you've played, and slice the statistics any way you want. There are players with databases of millions of hands who constantly analyze them; if there was something fishy going on they'd find it.

      --
      How to solve most of our problems: 1.Lots of nuclear plants. 2.Cure aging.
  24. Re:Online Gambling by ackthpt · · Score: 2, Insightful
    I prefer to go a few miles up the road to the local Native American casino. I figure it's the least I can do since my ancestors killed off most of their ancestors.

    That's an interesting idea.

    I have given this considerable thought over the years, since they enabled native american-run casinos in Michigan. If run with care, the proprietors could use the procedes to BUY back land which had been taken from them.

    When all else fails, use the invader's rules against him.

    --

    A feeling of having made the same mistake before: Deja Foobar
  25. Win - Win for the Casinos by Darth_brooks · · Score: 2

    "Brick and Mortar" casinos can come out ahead either way it goes.

    The big Vegas casinos will be the first to tell you, they *want* internet gambling in the United States. They can trade on the "trust" they've built with people face to face to build their on-line business. Any major customer service business has one major cost: labor. You don't pay dealers on-line, you don't comp drinks, you don't pay waitresses. Just a few admins and bandwidth costs.

    If the US outlaws internet gambling, The casinos lose slightly, but come away with a push overall. They can't move into the on-line realm like they want to, but will at least keep the face to face business.

    Personally, I would like to see on-line gambling through the major casinos. I'm hesitant to put up money with off shore organizations (why yes, I fully trust you and your Costa Rican LLC! Here's my Visa card!) You'd probably see a slight drop off in gambling related crime. For instance, I wouldn't mind dropping 20-40 bucks a week on the NFL and NHL. But since I don't live in Vegas, I'd have to deal with the local bookie. I'd be a criminal.

    The easiest way to get rid of the small time crime (loan sharking, bookmaking, etc) is to make it a large scale crime e.g. a profitable capitalist enterprise :)

    --
    There are some people that if they don't know, you can't tell 'em.
  26. Re:The big casinos want a monopoly in exploitation by DenDude · · Score: 3, Informative

    /* Gambling casinos don't gamble. If you play enough, you will ALWAYS lose. */
    If this was a slot machine, or other game of chance where the casino has a vested interest in you losing all of your money, that would be true.
    This seems to be more about poker, though. In poker, you do not play against the casino, you play against the rubes. The house merely takes a percentage (the rake) of the pot. On the $3-$6 tables I play, that starts a $1 per pot.
    Now, what happens is that people come and go on this table, and they tend to lose x amount of money before they leave. When one player leaves the table, the pots get smaller, and that means the rake gets smaller.
    Now, using this information, it seems to me that the casinos want you to play A LOT of hands.
    More players = bigger pots = higher rake
    Poker is the one game where the casino does not care at all how much you make or lose at the table, because they only get a percentage of each pot.

    --
    A Haiku: my language choices/assembler pascal lisp c/old school programmer
  27. Re:The big casinos want a monopoly in exploitation by Best+ID+Ever! · · Score: 2, Insightful

    assuming all players being equally likely to win

    This will almost always be an incorrect assumption in a game of poker.