Nevada has enacted legislation that makes Internet gaming a crime, unless the wager is placed with a state-licensed sports book or casino. New York considered Internet gaming legislation in 1997, in an effort to shore up a declining horse racing industry. More will soon follow as governments that recognize the potential of Internet gaming race to regulate and tax it. Let me turn to some of the substantive issues raised by Senator Kyl and others. When witnesses come before you and extol the dangers of Internet gaming, they fail to recognize that the same technology which makes Net gambling feasible, also allows for more precise auditing and control.
Technology can also provide powerful tools to screen out minors and compulsive gamblers.
Let me give you an example. I have three river boat casinos within a mile of my office. I can do a lot of damage to my bank account there and virtually no one will know. Moreover, many traditional casinos try to create an environment that fosters risk-taking. Few have windows or clocks.