We have been hearing a lot this year about online gambling. Most of the discussion has centered on the fantasy sports sensations Fan Duel and Draft Kings. The argument has been lively and the huge demand for online gaming has become obvious. Billions of dollars are regularly changing hands online. Government has always taken an interest in gambling. From outright bans to state-run lotteries, the federal government has been all over the board. The popularity of online gaming has quietly grown without the fanfare associated with the sports sites of late.
As the online gaming industry has grown, it has felt government apply more and more pressure. The FBI has been researching the potential for abuse since Congressman Spencer Bachus got involved as far back as 2009. The FBI Cyber Division has done exhaustive studies to find ways that things could go wrong. The main worry seems to be that gambling is a way for terrorists to launder money. Soon the FBI will argue before a Government Reform and Oversight Hearing in the House of Representatives on just this topic.
The people who run online gaming sites and the states that allow it understand they are going to be under scrutiny. That knowledge has forced the online gaming industry to effectively self-regulate. It’s only good business for them. They have advanced technology to verify age via multiple ways. Most states that allow online gaming test the system regularly by having underage players attempt to set up accounts only to be denied.
The industry has implemented credit card registries and the same anti-money-laundering measures that banks use to keep nefarious activity out. The Poker Players Alliance has stated that it would support regulation in the form of licensing. Licensing would effectively make the law of the land the kind of procedures all reputable online gaming businesses already employ. This would protect the consumer, the sites and the government all at once. Licensing done right would eliminate the possibility of cheating, age falsification and money laundering.
The FBI is misguided to argue that online gaming in its current form is somehow facilitating terrorist money laundering efforts. There has been no proof to that effect as the industry stands firmly against illegal activity and has shown a willingness to regulate people out who would ruin the fun with corruption.
Online gaming has even shown that with the proper funding mechanisms in place, a new licensing program would be a financial boon to the government and cause no undue strain or increase of debt. This program will fund itself through the money gathered from license fees.
The FBI is right to look for ways that the terrorists are attempting to launder money, but it’s not in online gaming. Any type of prohibition of this thriving industry will simply be an attack on individual freedom and promote illegal gaming.
It begs the question: Who besides the FBI is behind this agenda? Perhaps brick and mortar casinos? I know it’s hard to comprehend that a proud department like the FBI might be used as an enforcement wing to a political agenda. But sadly, it has happened before and will likely happen again.
Did prohibition of alcohol eliminate drinking? No. My wife’s family is from Carroll County, Iowa, home of Al Capone’s favorite — Templeton Rye. Prohibition simply turned a bunch of farmers into felons as half the men in town started cooking whiskey in their barns to ship to Chicago and feed their families. The Feds chased them around for years before repeal. The FBI should learn from its past mistakes and work with the gaming industry to ensure that adequate safeguards are in place and nothing more.
As we’ve seen lately, the demand for gaming is strong. That demand cannot be legislated away. The government and the FBI should respond to its people by protecting a thriving industry.
We all know we need more thriving industries in America. The House will have a chance to get this right. Will it come down on the side of free market business or on the side of prohibition? We shall see soon enough.
Steve C. Sherman is a writer, radio commentator and former Iowa House Republican candidate. He has published a book, Mercy Shot. You can find out more about Steve’s work at http://www.scsherman.com. Thinking of submitting an op-ed to the Washington Examiner? Be sure to read our guidelines on submissions.
