Quote:
Originally Posted by Hurley
Why are US laws so against gambling? It seems the complete opposite to the UK
Now, this is a very interesting question, actually.
With the U.S. currently running huge and unsustainable budget deficits it is finding itself under constantly increasing political pressure to either raise taxes or find alternative sources of revenue to fill those financial gaps.
This is why many believe the U.S. will eventually legalize and regulate online poker. It represents a new and healthy revenue stream for the U.S. government (which is always much more palatable than raising taxes).
So, given this, FullTilt, Stars, and other foreign online poker sites represent well-positioned and very formidable competition for the future U.S.-based online poker companies.
However, what if the U.S. uses increased legislation and regulatory mechanisms to reduce this foreign competition BEFORE American companies enter the newly legalized U.S. online poker market?
It would give those new U.S.-based online poker companies a huge advantage, right? Thus, increasing the tax revenue the U.S. gov't would reap from this newly legalized U.S. market.
That is what I think is happening: the U.S. is going to push out foreign competition so that when American companies enter the U.S. market they will be immediately successful, benefiting both the U.S. gov't in the form of tax receipts and the American casinos and companies that will be entering the online poker market in the U.S by reducing their foreign competition.
And that is why I am getting out of the way and will wait for the dust to settle.