We have been hearing quite a bit about the global economic downturn recently. When the recession originally took the global economy by storm, it was thought that the possibility of a removal of the online gambling ban would have to be put on the back burner.
Barney Frank has been the main advocate of introducing a regulated online gaming market rather than the current unworkable situation. Unfortunately, the committee on which he sits has within its remit matters pertaining to the broader economy.
When the economy started to tank, it was presumed that all of the time and efforts of this committee would become totally focused on these broader economic issues and that online gambling would have to be left to one side for an undetermined period of time.
At first this is exactly what did happen but over a relatively short period of time these broader issues have brought the topic of online gambling very much back into focus.
Taxation revenue at both state and federal level has seen a dramatic and catastrophic fall off. It has always been a sensible assumption that a government cannot tax it’s way out of a recession but this leaves the problem of trying to generate revenue when existing streams cannot take any more taxation.
Online gambling is an extremely profitable business and at the current time because of the ban, the U.S. government is generating no income at all from it.
So here is an industry with huge potential revenue that would be easily taxable if the ban were removed and a tightly regulated market put in place.
It is this set of circumstances that is causing a lot of people in Washington to take another look at the whole area of online gambling.