Remote Gaming and the Gambling Industry (CRS Report for Congress)
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| Release Date |
Nov. 16, 2011 |
| Report Number |
R41614 |
| Report Type |
Report |
| Authors |
Suzanne M. Kirchhoff, Analyst in Industrial Organization and Business |
| Source Agency |
Congressional Research Service |
Summary:
During the 112th Congress, lawmakers have introduced legislation to allow, regulate, and taxonline gaming-from narrow bills covering only poker, to broader bills that would allow a rangeof interstate online gaming. House and Senate committees have held hearings and roundtablediscussions on the issue. Those in favor of allowing expanded online gaming cite potential federalrevenue from taxing and registering online gambling operations, as well as the need forcomprehensive regulation. Opponents question whether it is possible to have stringent regulationof online gambling, which they say holds the potential for increased fraud and money laundering.Among other issues Congress faces are the proper balance of federal and state regulation and thepossible social costs of expanded gaming, including problem gambling.Legalization of additional forms of remote gaming could pose a challenge to many existing typesof gambling, from lotteries to casinos to racetracks with slot machines. The industry has beengoing through a difficult stretch, with receipts falling in 2009 for the first time in more than threedecades, and many brick-and-mortar casinos and racetracks experiencing revenue declines.Revenues did begin to rebound in 2010, but were still below 2008 levels. Even if it leads to thegrowth of employment and gambling revenues at the national level, federal remote gaminglegislation has the potential to affect particular locations, especially venues that cater to daytrippers rather than vacationers. These effects are likely to depend upon the details of whateverlegislation Congress passes and the specific actions taken by individual states in response.
