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Online Casinos Protest Protectionism

The United States is surely a diverse marketplace and there are constantly changing laws and legislation in the country in regards to the online casino gambling industry. One of the big concerns has always been the fact that the UIGEA bans foreign internet gambling companies from processing transactions with US gamblers, yet has carve-outs in place that do allow certain US companies to process internet gambling and betting. That is a key sticking point for why the US has consistently loss any and all debates and stands off with the European Union or the World Trade Organization. The US is not wholly opposed tot eh online casinos, just those operating outside of the US; and it’s that sticking point of protectionist policy that has the community up in arms this week.

The state of Illinois has announced that laws regarding online gambling on the horse races is about to change. Basically, Illinois gamblers will soon be able to visit one of the licensed internet betting sites and place their bets. The state plans to circumvent the federal legislation banning many types of internet activity by not offering the online casinos, and also by keeping all of the accepted bets limited to in-state Illinois residents. The UIGEA is argued by lawyers and experts to only apply to intra-state betting and as long as the companies do not process bets from out-of-state, then the activity should be free and clear.

But what does that mean for the foreign online casinos that argue that they have a right to compete with US-based companies for a share of the horse betting public. These companies are willing to play by any rules that the US and the state governments establish, but they are demanding equal rights to the small legal US internet gambling market that does exist.