Atlantic City and Las Vegas casinos are newly licensed to operate online gambling sites. It’s good news for them: After seven straight years of sinking profits, the Center for Gaming Research at the University of Nevada predicts that if brick-and-mortar casinos continue to shrink at the same rate as this year, their online presence will have to double to make up for lost revenue.
So it’s no surprise that states like Nevada and New Jersey, having grown reliant on gambling revenues, are taking advantage of the Department of Justice’s 2011 decision gutting the Wire Act to expand gambling online.
Be careful what you bet on. Experts have expressed concern over Internet gambling for years.
In 1999, the National Gambling Impact Study Commission recommended an explicit moratorium on gambling expansion and a complete ban of Internet gambling until more research could be done on its harms and benefits. Unfortunately, this research has not been done and online gambling advocates are petitioning Congress to approve a regulatory regime that would help them spread online gambling nationwide and give them the trappings of a legalized market — most important among these, the illusion that online gambling is somehow safe.
Online gambling will increase availability. But where there is an increase in availability there’s also a documented increase in incidences of problem gambling and the attendant social harms of bankruptcy, divorce, incarceration and suicide.
Advocates for online gambling say problem gamblers make up only a small percentage of overall players, but that does not take into account ripple effects. Studies estimate that a compulsive gambler will affect an average of five to 10 other people.
Even recovering problem gamblers may not be able to undo the damage done to their finances and relationships.
The total costs to society are untold. The increase in crime, financial hardship, lost work and family breakup have led Baylor University professor Earl L. Grinols to estimate gambling’s costs outweigh its benefits 3-to-1.
Internet gambling is particularly worrisome because evidence overwhelmingly shows that compulsive gambling is three to four times more prevalent among online gamblers than non-Internet gamblers.
The 24-7 ease of access, speed of the game, lack of clear cash markers, solitary nature of play and ability to play multiple games at once make online gambling inherently more dangerous than other forms of gambling.
Both sides of this debate agree a state-by-state patchwork of online gambling regimes will not work. Congress needs to act in the interest of families and communities by updating the Wire Act to ensure enforcement of federal law prohibiting Internet gambling.