Can Online Betting Change its Luck

Justice's sweeping offensive against overseas-based Internet gaming has squeezed everyone from credit-card issuers to the PR firms that defend gambling companies in the court of public opinion.

As the Department of Justice (DOJ) continues to make its move across the US with threats and fines to any organisation that promotes or aids online betting, a backlash may just be hiding around the corner.

Of the more vocal defenders of online gaming, Casino City, a portal that runs out of Louisiana, is currently suing the DOJ for violating their first amendment rights.

Meanwhile, gambling operators are lobbying DC and making the lawmakers aware of the potential new and lucrative source of tax

Even traditional Casino operators such as MGM Mirage are backing legalisation as the only logical move and many are pointing to the UK's change in their gambling laws that could allow their operators to offer online gaming to US citizens regardless of the US position. Additionally, in November of this year, a WTO ruling went in favor of Antigua who argued the US violated international trade laws by not allowing credit cards to be used for online gambling

But despite all this, and the current explosion of poker in the US, the DOJ continues to defend its hardline stance.

"American Citizens Want To Gamble On The Internet"David Carruthers, the outspoken CEO of Online sportsbook, BetonSports explains his position on the state of play in the US as he openly admits that US bets account for 98% of his $1.25 billion revenue

Carruthers continues:

At the moment, online gaming is not regulated. It is, therefore, not taxed. The [U.S. government is] missing an opportunity for substantial revenue.

One of the biggest issues for the DOJ is their continuing fear that the online gambling industry is fraught with fraud and money laundering.

However, with the advent of new technology that logs and reports on every transaction online and certification and testing companies that can indepedently track audit trails of each aspect of the gaming operation, the argument is long getting stale and unrealistic.

The UK and many other countries have shown that online betting and wagering is both profitable and beneficial, adding a new and enticing revenue stream in the government's pockets