The Battle for the Future of Internet Poker

As of June 7th, 2006 the state of Washington has banned certain forms of Internet gambling, essentially ending the ability of poker players in the state to play online.

Those that are caught are charged with a Class C felony, and may be punished with up to 10 years in jail!

Legislators in the U.S. House of Representatives are riding this momentum and using it to try and gather up enough support to make it more difficult for Americans to enjoy their hobby.

The Unlawful Internet Gambling Enforcement Act HR 4411 makes using a credit card to place a bet on the Internet illegal, and will ultimately require banks to police their own customers.

The House has already passed this legislation 317-93-22 and it will soon move to the Senate. Various interests groups are popping up with their take on the situation.

The Poker Players Alliance, a group that is primarily funded by the poker sites recently published a study that found the U.S. could bring in over $3 billion a year by legalizing online poker. This money would primarily come from player's taxable winnings, and a few small fees.

The U.S. government could take the opportunity to legalize Internet gambling and bring it above ground where it could be regulated and taxed. After all, gambling in America is big business, and numerous U.S. corporations are positioned well to tax advantage of the 'poker boom' on the Internet.

The traditional gambling industry views gambling on the Internet as a source of competition they have no way of competing against.

Las Vegas and Atlantic City heavyweights such as Harrah's, Caesar's, and others could bring much needed credibility to the industry, and could be easily regulated by the U.S. government.

In turn, these companies could bring certain knowledge of the game and understanding of the importance of monitoring and security that would make the games more fair and secure.

In times where it is difficult to raise taxes for many needed programs and other functions of the government, a rather large tax opportunity is being left on the table.

Instead of sending these funds offshore, the U.S government should follow the lead of many countries in Europe, and at least partially legalize Internet gambling in the form of poker.