One Step Closer to Legalizing Online Gambling?
by James Gattuso on October 10, 2006
The Economist has an interesting editorial and feature article this week on the online gambling bill passed by Congress recently. The article makes the case–also made here–that the bill will do little to stop online gambling. It goes on, startlingly, to argue that the law could actually make legalization of online gaming more likely. The logic is that the bill has depressed the value of British online gaming firms, thereby making them more vulnerable to takeovers by their American cousins. The feature article concludes:
If such acquisitions come to pass, it seems more than likely that American online gambling firms would begin to lobby American politicians to legalise online gambling. Thus, America’s prohibition may ultimately have the unexpected consequence of moving the country one step closer to legalising online gambling.
I’m not sure this is a likely outcome, but it’s an interesting take nonetheless. Worth reading.
James Gattuso / James Gattuso is a Senior Research Fellow in Regulatory Policy in the Roe Institute for Economic Policy Studies at The Heritage Foundation. Gattuso also leads the Enterprise and Free Markets Initiative at Heritage, with responsiblity for a range of regulatory and market issues. Prior to joining Heritage, he served as Vice President for Policy at the Competitive Enterprise Institute and also as Vice President for Policy Development with Citizens for a Sound Economy (CSE). From 1990 to 1993, he was Deputy Chief of the Office of Plans and Policy at the Federal Communications Commission. From May 1991 to June 1992, he was detailed from the FCC to the office of Vice President Dan Quayle, where he served as Associate Director of the President's Council on Competitiveness. He lives in Alexandria, Virginia with his wife Dana, 8 year-old son, Peter (whom he relies upon to operate his VCR), and his four year-old daughter Lindsey (who does the DVD player.) He has no known hobbies, but is not nearly as boring as he seems.
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