Study Reveals that Online Gambling Regulation is Effective

Submitted by Beth on Fri, 2009-12-11 at 21:32

Malcolm Sparrow, a Harvard University Professor, has just released a study that reveals that regulation of the American online gambling industry is a more effective solution than prohibition. Circulated during the White House Financial Services Committee Hearing on the Internet Gambling Regulation, Consumer Protection and Enforcement Act (H.R. 2267), the study was applauded by the Poker Players Alliance, who have been fighting tirelessly against the prohibition of online gambling.

The study provides an academic cross-section of the ways in which to protect online gambling consumers. It reveals evidence that millions of American players are currently using offshore and international online gambling websites. Outside of the United State’s jurisdiction, these operations do not offer any consumer protection. If online gambling prohibition is enacted, Sparrow’s studies warns that American players will continue to be subjected to the dangers of entrusting the money to operators who cannot guarantee security.

“The release of this student adds even more fuel to the fire that a prohibition like the UIGEA won’t work”, says PPA Chairman Alfonse D’Amato, who believes that Barney Frank’s H.R. 2267 Bill is the solution that the government is looking for. The bill seeks to establish a regulatory structure that would allow approved online gambling operators to accept wagers from American residents. The framework would ensure that the industry is regulated, providing players with safe online gambling destinations, rather than push them in the direction of international and possibly unsafe operators.