Congressman Compares UIGEA to Prohibition

Submitted by Gary on Wed, 2010-06-16 at 14:22

Now that Barney Frank’s online gambling bill is getting the attention it deserves from the federal government, his allies have taken this as an opportunity to voice their opinions about the online gambling ban. Washington Representative Jim McDermott is one of the most vocal, and he his making his point by comparing the current situation surrounding online gambling to the prohibition of alcohol.

He stated that the only solution is to regulate the industry, as banning the activity would be an ineffective waste of money. McDermott’s online gambling bill complements Frank’s, and would use a portion of all money spent at online casinos to fund government services and programs. By banning online gambling, not only would the government put many players at a disadvantage – it would also miss out on a very valuable revenue stream.

“Regulation and taxation have proven to be better policy for our country when it comes to alcohol”, says McDermott. “The same is true for online gambling”.

The millions of dollars that are currently being spent on technology to block online gambling websites could be used in other, more useful ways. Instead of causing the government to spend an exorbitant amount of money to block online gambling, regulating the industry would make money for the government. McDermott stresses the importance of regulation, because it would benefit the country at large in many ways, while prohibition continues to drive the industry in a detrimental direction.