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Online Casinos Prohibition Won't Work

In the history of the United States, and even our northern neighbor, Canada, prohibition is fundamentally ineffective. The fact is, if there is a large market for an activity and the public is accustomed to the pastime, then prohibiting the activity probably won’t work – at least not from a historical perspective. That’s what makes the current U.S. online casinos gambling ban so interesting, the government has attempted to block financial transactions between players and offshore gambling companies, and all that has done is force the activity underground – much like the prohibition in the Roaring Twenties on alcohol.

The CEO and President of the American Gaming Association (a trade group for land casino interests), Frank Fahrenkopf Jr., commented that the current online gambling ban will continue to be ineffective because "Money is fungible, and it gets to where it wants to go.” Fahrenkopf then elaborates on the accusations to the government concerning the apparent prohibition, I don't know of prohibition of anything that ever worked."

There is a fear at this point that the Unlawful Internet Gambling Enforcement Act (UIGEA) as it stands will have a chilling effect on even the legal U.S. online casinos gambling activity. Because the UIGEA puts the burden of enforcement on the banks and financial institutions, there is a likelihood that many banks will put into effect a blanket ban on gambling transactions – legal or not – as a way to ensure compliance with the UIGEA.

That is a bit extreme argue many opponents to the UIGEA, and the fact is, the Act is largely ineffective so perhaps the government should look to other options for the U.S. online casinos gambling industry. Although a large majority of the prominent internet gambling sites pulled out of the U.S. market immediately after the UIGEA passed through, other sites continue operating for U.S. players to this day.