University study shows that regulation has a positive effect on Online Gambling
06 June 2015
The 41000000000 $ Dollar industry of online gambling is booming all over the world, except in the United States, where only three states were willing to legalise and regulate Online Gambling in practice. A new study by the Michigan State University argues that more should be controlled in order to protect the industry as well as the consumers. The study was carried out to evaluate the costs and benefits of the policies of the controversial Internet Gambling Enforcement Act, which was signed by President George W. Bush in 2006. According to the report, the law legalises online gambling activities like virtual poker and blackjack, with exceptions for certain fantasy sports, online lotteries and horse betting. Although the law was passed in 2006, it took another two years before the actual regulations were issued by the government.
The enforcement strategy of the Ministry of Justice remained unclear for another two years, until 2010. A subsequent clarification in 2011 seemed to fail with regards to recent protectionist enforcement strategy. The Ministry of Justice stated that online gambling could be permitted if it was taken over individually by the states. That is how the conditions for the re-entry of online gambling operators in the US market in certain states like New Jersey, Delaware and Nevada have been created. These three states were the first to regulate online gambling. The efforts of the industry to regulate it brought about a 3 percent increase in the value of publicly traded online gambling organisations. The MSU study drew positive correlations between visible efforts of industry and the increase in value. The study concludes that there exist benefits with regards to online gambling in areas where it is controlled and regulated, including minors and problem gamblers, from the scheme in the US. This applies to both players and providers.