Cardozo Journal of International and Comparative Law
Abstract
This piece examines the difference between the stated and underlying purposes of the Unlawful Internet Gambling Enforcement Act of 2006. While the Act's proponents cite the protection of family values and the prevention of money laundering and terrorism as the motivation for the legislation, the underlying purpose of the Act appears to be economic in nature. The number of Internet gamblers has grown in recent years to over twenty million, with as many as 80 percent of players residing in the United States. Further, because of federal laws prohibiting domestic, remote gambling, most, if not all, Internet gambling companies operate outside of the United States. Consequently, American money is constantly leaving the United States to be deposited at offshore sites, and the government misses out on tax and other revenue from this lucrative phenomenon. While supporters claim that the Act preserves family values, legislators promoting the Act recognize the profit that can be made from Internet gambling, outside of the United States, by keeping that money in the country, to stimulate the domestic economy. If the Act were solely about protecting the morals of society, it would have banned all gambling; instead, the Act carves out exceptions for State lotteries, horseracing, gambling on Tribal land, and fantasy sports. This Act has several stated intentions, yet one unstated purpose: to exclude foreign gambling entities while allowing domestic gambling to continue. Although the Act does not make Internet gambling illegal, it effectively does just that by preventing Americans from funding their online accounts.
Disciplines
Communications Law | Law
Recommended Citation
Dana Gale,
The Economic Incentive Behind the Unlawful Internet Gambling Enforcement Act,
15
Cardozo J. Int'l & Comp. L.
533
(2007).
Available at:
https://larc.cardozo.yu.edu/cjicl/vol15/iss2/8