US Looks to Online Gambling, Sees $42 Billion in Potential Revenue

For the past several years, American gambling laws have prevented players in the US from fully utilizing internet gambling websites. Online gambling is not illegal in the US; instead, banks and other financial institutions are not permitted to process financial transactions associated with internet gambling. This makes it very difficult for US players to gamble online, because they cannot fund accounts or withdraw winnings.

In recent weeks, however, US lawmakers have been reviewing legislation that could see the reversal of the current laws against online gambling in the country. A pro-gambling bill is being pushed by Representative Barney Frank, and the bill has already gained the support of around 60 other House Representatives.

In a new report just released by the US Joint Committee on Taxation, financial experts estimate that if the Frank bill passes, the changes it would implement could bring in revenues of $41.8 billion over the next 10 years. This revenue would be generated through fees levied on all deposits US players make at internet gambling websites.

Senator Ron Wyden recently proposed that the legalization of online gambling in United States could be used to pay for President Obama’s healthcare reform. Wyden’s efforts were unsuccessful, but the fact that the issue of online gambling revenues has surfaced once again shows that US lawmakers are becoming increasingly aware of online gambling as a potential source of revenue.

Despite the current legal situation surrounding gambling in the US, estimates suggest that Americans currently spend $100 million annually gambling online. This figure would increase significantly if current legislation is reversed. A major increase in gambling in the US of course brings with it a whole new set of issues to be dealt with, but in the mean time, financial concerns are paramount.