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How Business Interests Outlawed Online Casinos

With the recent passage of the Unlawful Gambling Act in the United States, many feel that Washington has basically signed off on "Prohibition II", forcing online gambling firms to go underground or seek less than above-board support for their activities on American soil. The gambling act made it illegal for online casino companies to conduct certain activities in the U.S., and restricts the ability of Americans to use their credit cards to place wagers at gambling sites online. Even commentators such as George Will, credentialed conservatives, have spoken out against the measure.

Prohibition in the early part of the 20th century was meant to be a moral check on the nation, saving it from its alcohol habit. But instead of weaning Americans off of the drink, Prohibition led to the opening of many small bars known as speakeasies, hidden from authorities and capable of appearing "innocent" in a very short amount of time. Gangsters such as Al Capone earned their fortunes and reputations in no small part due to their activities in smuggling booze and supporting drinking establishments from the start to the end of the era of Prohibition.

In order to understand why the Congress passed the Unlawful Gambling Act, and why President Bush signed it, we need only look to cities such as Las Vegas, which see online gambling as a threat to their profits. Not all forms of online gambling were banned with the passage of the act, certain forms of horse-track betting and state lotteries can be accessed or played online. This is no small victory for individual states that have lotteries, as they reportedly lobbied hard for this legislation and provisions to be passed and signed into law.