Oregon Congressman Switches Sides to Support Online Gambling

May 22, 2010 | News Category: Gaming Law

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With all the activity in the United States at the moment regarding online gambling arguments, with many for online gambling, and many against it, it was quite a surprise when an online gambling opponent switched sides.

Representative Earl Blumenauer, a Congressman from Oregon, was an online gambling opponent who had supported the UIGEA (Unlawful Internet Gambling Enforcement Act) in 2006, when it was passed by Congress.

Representative Blumenauer has now come out saying that he feels that the online gambling ban is a hypocritical ban, and that he was in the wrong when he expressed anti-online gambling views, and supported the UIGEA in the past. He has now declared that he will in fact support the regulation of online gambling.

The change in opinion came about after the Ways and Means Committee hearing on Wednesday, which dealt with Jim McDermott’s online gambling taxation bill. Representative Blumenauer explained in his statement that it was hypocritical to allow domestic horse racing operations, fantasy sports leagues, and lotteries conduct their businesses online, while preventing both online casinos and online poker from operating.

Not only did Representative Blumenauer note that he felt it was hypocritical, but he also said that he now believes that the United States government should regulate online gambling in order to significantly increase revenue sources. This can be done via online gambling taxation and licensing fees.

The government should be concentrating on creating jobs, which can be done by allowing a new industry to flourish. He also noted that the government should prioritize the reduction of the country’s deficit.

The estimated figures that have been suggested for online gambling taxation income could be as much as $42 billion over a ten-year period. However, if the United States does not regulate online gambling, this money is essentially lost as United States citizens gamble at offshore online gambling sites. Correctly regulated online gambling sites will bring new jobs, tax revenue, and greater economic activity to a country that could really use it.

The House Ways and Means Committee was informed that United States residents wager an estimated $106 billion annually at non-US regulated online gambling sites, which are based offshore.

Those who wish to gamble online are likely to find a way, even with the implementation of the UIGEA. Many US citizens feel quite strongly that their civil liberties are being encroached upon by not allowing them to gamble online, especially since land-based gambling is legal in certain areas.