California Moves Towards Online Gambling Decision

Submitted by Gary on Tue, 2010-06-29 at 20:50

California legislators are discussing the possibility of legalizing online gambling. Bill 1485 is scheduled to be discussed in the California State Governmental Organizational Committee and it specifically addresses whether several gambling operators will be allowed to offer online gambling services for the next five years.

The UIGEA (Unlawful Internet Gambling Enforcement Act) went into effect at the beginning of June 2010 and prevents financial institutions in the US from processing payments between US residents and online casino operators.

California, like many other states, was hit hard by the recession and is looking for a solution to their economic problems. If the bill is passed, the online casino operators that are licensed to offer online gambling services would have to pay 20 percent of their gross annual income to the government. This amount of money is expected to be substantial since the US has an online gambling market worth billions of dollars. Requiring operators to give a percentage of their earnings to the government will likely prove to be a great help to California`s struggling economy.

This is not the first time an online gambling bill has been brought to legislators` attention. The major problem is that the state is split, almost down the middle.

Some Californians are all for the freedom to make their own choices when it comes to online gambling while others are concerned about the consequences.