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Scare Tactics to Block Online Casinos

The opposition to internet gambling is not only resulting to scare tactics as a way to keep uninformed politicians from legalizing internet gambling, but some of the information is patently untrue. The major controversy in the online casino gambling issue right now comes from the defeat of HR 5767 by the House Financial Services Committee. The Republicans were wholly against HR 5767 and the King Amendment because of an opposition to online casino gambling – but the bill’s supporters argue that the Republicans largely missed the entire point and intention behind the bill. As the media coverage winds down after the intense coverage yesterday, some of the bill’s supporters are widely criticizing Republican Congressman Spencer Bachus for providing misinformation about the U.S. online gambling industry.

Bachus released an op-ed piece in the American Banker earlier this week, and some of his claims have caused contention among online casino gambling industry supporters. Bachus’ piece argued for the continued prohibition of U.S. internet gambling – using the UIGEA, and he used false statistics about the internet gambling industry as a way to back his claims that the UIGEA protects underage and problem gamblers.

Republicans are largely opposed to online casino gambling because it can lead to underage gambling and support the development of problem and compulsive gamblers. And while the UIGEA would presumably stop offshore internet casinos from accessing the U.S. market, previous research has shown that internet gamblers in the U.S. continue to head to the gambling sites in ever increasing numbers.

Bachus argument included the claim that foreign online casinos left the U.S. market with the passage of the UIGEA, which then means that internet gamblers are safer without these companies. On the flip side though is the fact that although the UIGEA did put a small hitch in the internet gambling levels for a time, U.S. internet casino gamblers continue to gamble, but now the market is largely underground and entirely unregulated. HR 5767 and King Amendment supporters stressed that internet gambling, as regulated by the UIGEA was hugely ineffective, flawed, unenforceable, and left internet gamblers with a dangerous black market of internet gambling choices.