The case for government action against online gambling was dealt a blow as a Washington research institute released a position paper this week defending the online casino industry. The Competitive Enterprise Institute argues that online gambling is clearly legal in the US despite public misconceptions, and says the Internet gaming industry gets a bad rap from politicians exploiting fear tactics.
In fact, the CEI report points out that much of the danger of online gambling is a direct result of the actions of the US government. A 2007 incident in which Netteller withheld payments because of pressure, including arrests of key personnel, by the US Department of Justice and the IRS led to millions being blocked from rightful owners. The incident is similar to a civil forfeiture case seizing millions supposedly belonging to Bodog online casino, but shrugged off by Bodog operators as money intended for US citizens as payment.
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