In 2006, President George Bush walked into my bedroom, shot me a snide grin, and pulled the plug on my computer.
Even though the former president hasn’t actually ever been in my home, his signing of the Unlawful Internet Gambling Enforcement Act effectively did just that. Party Poker, which had served as an occasional diversion for me and millions of other online poker players, was instantly turned into a play money site. As anyone who has ever gambled knows, it’s not really gambling if there is no real money on the line.
Yes, I know that the President’s signature was only the final step, as “The Act” had many supporters, but I’ve always blamed George Bush for taking away my fun. After all, he did dub himself “The Decider”.
A few years later, I opened an account with PokerStars on a whim and discovered that I could play Texas Holdem once again. I didn’t think that “The Act” was repealed, so I didn’t understand how they were doing it. In reality, I didn’t really care how.
Game on.
The fun ended again yesterday when the FBI and U.S. Attorney’s Office took over the domains of several online poker sites.
Whatever side of the internet gambling debate you fall on, I suspect that we can all agree that there is a great deal of hypocrisy in determining what type of gambling is bad vs. what type of gambling is acceptable. Lotteries, church bingo, sports betting, March madness office pools, casinos, race tracks, etc. are all forms of gambling, yet only some are considered criminal.
Why is that?
In 2007, the Mount Airy Lodge Casino near my home opened as a slot parlor. By mid-2010, table games were added to the mix. This means that I can take a 10-minute drive and gamble as much as I want. The difference? Tax revenue.
Pennsylvania began granting casino licenses in 2006, with the first venue, Mohegan Sun, opening in November of that year. Revenue from slot parlors is taxed at a 54.5% rate which is divvied up as follows:
Total tax revenues through February 2011 exceeded four billion dollars ($4,053,826,712). This phenomenal windfall has occurred during years in which the economy has been depressed (2006-2011). Imagine the size of the “take” for the government once the economy improves. Mount Airy alone has been taxed nearly $300,000,000 in 41 months.
I can own a gun, but I can’t play an online game and go all in with the nuts (bet all of my chips while holding the best possible hand). In my view, the ease of availability of a handgun is far more dangerous than doubling down on an online blackjack table.
There are social ills that accompany access to gambling, just as there are with the accessibility of alcohol and tobacco. I’m not debating that point. But when the government places the rules in opposition: good vs. bad gambling – which are essentially the same thing, the hypocrisy is transparent.
If the FBI and U.S. Attorney’s Office are acting on the behalf of legislators who are interested in getting a piece of the online gambling pie, they should just say so and spare us the charade of acting for “the public good”.
The money grab is on.
Care to bet on what happens next?
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The tax revenue source data for my charts was obtained from the Pennsylvania Gaming Control Board.
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