How Long Can the U.S. Hold Back Regulating Online Casinos?

The review of the U.S. Unlawful Internet Gambling Enforcement Act has been pushed to September causing frustration for online casino providers.

Let’s just say it – the U.S. government has got a lot on their plate these days. In the midst of a recession where jobs are being lost, homes are being repossessed and companies are going bankrupt the regulation of online casino gaming in the U.S. has fallen further down the country’s lengthy to-do list.

But players and analysts alike are wondering how long the U.S. can afford to wait to handle the issue. For one, regulating online casinos would create a wealth of revenue from taxes which would give the government a much need income boost.

Unfortunately for avid players and online casino operators the review of Rep. Barney Frank’s bill that would have likely seen the end of the infamous UIGEA (Unlawful Internet gambling Enforcement Act), which cleverly prohibits online gambling, has been pushed back to September. The bill was intended to go up for a review as early as next week.

On the other hand, investment firm Goldman Sachs is advising that the regulation of online gambling will happen very soon. In a note the company stated that simply put the U.S. cannot afford to pass up the estimated $12 billion that a combined U.S. online casino and poker market would create.

In fact the revenue numbers, as noted by OCA gaming analyst Sherman Bradley, have been evident for some time now. Last year Pricewaterhouse Coopers found that the UIGEA ban has been costing the U.S. more than $50 billion in revenue in the last three years.

And while many players are flocking to underground casinos and poker games instead, the U.S. continues to lose more money as every day passes. But with more than 35 members of congress co-sponsoring Frank’s bill to regulate online gambling perhaps the September review date will stick and the U.S. government will realize this is one date they really need to keep.