Annotated Bibliography
Steven Newler
Topic: Internet Gambling in the U.S. WRT 205 Prof: Janet Ridgeway MW 2:15-3:35pm
Fish, Mike. “Legality of online gambling remains big question mark.” 26 Dec 2003. Sports Illustrated. 14 Feb 2005 . This article attempts to address the legality of online sports gambling. There is much confusion in the US these days as more and more certain industries are migrating onto the Internet in an attempt to make themselves more accessible. This is indeed a successful push, however, certain aspects of the law never expected the creation of something like the internet, where people all over the world can communicate with each other so easily across their borders. Mike Fish discusses how successful online gambling sites have become, specifically sports book sites that allow users to place bets on athletic events. Although it was previously illegal in the U.S., it is no a loophole since many of these sites are set up in other countries where there is no law against the activity. Lawmakers now are scrambling to create a decision that would remain constitutional yet would limit the potential of people getting out of control with a gambling addiction. Fish’s attempt at solving the legality issue is incomplete, however, he is not to blame, as the issue itself has no answer. It appears at the beginning of the article that his goal is to answer the question in order to help his readers, whom would appear to be interested, as it is published on Sports Illustrated’s website, which is geared towards sports enthusiasts. Fish is helpful though in heeding caution to anyone interested in partaking in betting in the future, as he warns that current bills in Congress may cause this activity to become illegal.
Hammer, Ryan D. “Does Internet gambling strengthen the U.S. economy? Don’t bet on it.” Federal Communications Law Journal, p.103. Dec. 2001. In this article, Hammer attempts to prove to the reader that Internet gambling is harmful to America, not only from a financial standpoint, but from a sociological standpoint as well. Hammer starts off discussing the harmfulness Internet gambling does to tax revenue, as he claims “many state and local governments are dependent [on this income]…[and] also costs the economy valuable jobs and assorted fees associated with traditional gambling.” Hammer goes on to discuss the legal history of gambling, including the Wire Act, which “prohibited individuals from utilizing telephone facilities to receive bets.” However, he notes that because of its passage in 1961, the Wire Act is ineffective and blurry when attempting to apply it to today’s technological society. To repair this loophole, Senate passed a bill in 1999 known as the Internet Gambling Prohibition Act. However, the bill was unable to receive the necessary votes for passage in the House. Few cases have been tried in court, which Hammer attributes this to the fact that not only the age of the internet gambling industry is so young, but “also the ambiguity surrounding Internet gambling legislation and jurisdictional issues.” Hammer concludes by stressing the point that the gambling laws we have in place now in terms of regular casinos and lotteries are good enough. However, he believes there is no need for an added legality of Internet gambling, as too much money will be leaving the country, harming American businesses in the industry, as well as a society that could become plagued with gambling addiction. Hammer’s point in banning Internet gambling is completely absurd, and all for the wrong reasons. A good that has a high demand from consumers will somehow,
someway, be sold to them, much like the illegal drug market. People will find a way to place bets and gamble illegally. Completely banning gambling over the Internet is not the way to go. However, is argument regarding a loss of revenue for state and local governments is completely believable. Nevada’s economy basically relies on gambling, as it is a major selling point as a vacation spot. However, by creating a law keeping gambling flows within the U.S., possibly by preventing citizens from making bets with companies residing outside of our country, could be a useful law, as American economy will not be harmed, and people can still be somewhat free to do as they wish. Hammer should rethink his stance on an altogether ban on Internet gambling.
Kristof, Kathy. “Online gambling makes it easy to lose shirt.” The Tulsa World. 10 Oct. 2004: Pg. E3. LexisNexis Academic. Syracuse University Library, Syracuse, NY. 20 Feb. 2005 . This article discusses how much easier it is for an individual to get caught up in online gambling instead of traditional casino gambling. Kristof establishes that in 2003, $5.7 billion was gambled online, and by 2009, that number will triple. The reason is because of it’s ease of access, as players can participate 24 hours a day, 7 days a week, from their own home. Without the hassle of traveling to a casino and using real money or some sort of physical quantity representing a monetary unit, people can get caught up in credit card bets, as they don’t actually have to do anything for the transaction, as they won’t see it for potentially a month from the date of the bet. Kristof believes Internet gambling is even more of a burden on a family’s finances, as bets made on credit are sometimes unable to be paid back, requiring the bettor to pay up to 20% extra per month on interest. Kristof’s argument regarding debt and gambling is completely true. Although she believes “all types of gambling can create debts, Internet gambling may cause people to fall further and faster because it allows gamblers to feed their addiction quickly, privately and at any time of the day or night.” Kristof, however, believes no end will be in sight for the Internet gambling craze, as no solution is viable for legislators to sign into law. She believes that as long as people want to gamble and want to do it in a fast and easy way, there will always be someone supplying the service.
Geewax, Marilyn. “U.S. Appeals Trade Ruling in Favor of Internet Gambling.” Cox News Service 14 Jan 2005: Financial Pages. LexisNexis Academic. Syracuse University Library, Syracuse, NY. 20 Feb. 2005 . The WTO recently ruled against the U.S. on an attempted ban on Internet gambling by the Bush administration, which claimed it “encourages fraud, money laundering, and underage wagering.” The WTO is an organization based in Geneva that settles trade disputes. On November 10th, it ruled against the U.S. and allowed Antigua to continue providing it’s services to U.S. customers. As a way around this ban, the U.S. has put a stop on any marketing or advertising done by these casinos on American soil, such as through radio waves, television, or print media. This has created a fear among U.S. banks, whom no longer permit cardholders to make wagers online with their card. The U.S. decided to appeal the WTO’s original decision, and the final word is expected on or around April 7th, 2005. Marilyn Geewax provides a very unbiased and informative article on this topic. Although she does not divulge into the more specific reasoning behind the WTO’s original decision, it allows readers to get a quick and easy understanding to the current events taking place regarding this controversial subject. In terms of the information itself, I believe the WTO was correct in it’s decision, as the US’s attempt to prevent a service from freely operating, yet not residing on US soil, is unfair to trade. Although the U.S. may argue that gambling has never been fully legal in the United States, it is legal in certain states. It cannot prevent citizens from gambling, as the federal government is unable to control a state’s powers as set up in the Constitution. It shall be interesting to see the final decision.