Ideally, a regulatory framework in the United States would be a partnership between the states and the federal government, and paid for with industry profits. Regulation would include strict licensing requirements, permanent U.S. siting requirements to ensure a jurisdictional nexus and U.S. control, appropriate state and federal limitations, and complete accountability through advanced auditing technology. Consumer protection would be achieved and taxes would be collected. To address minor access, the gaming operator could be required to strictly control participation through a comprehensive verification system that includes a mandatory waiting period to establish the bettor's identity. Such a regulatory regime would be funded entirely by the operators and would not cost taxpayers a dime.
Technology currently exists to extensively and thoroughly audit on-line casino style games.
From a regulator's perspective, such spot checks are invaluable in the fight against corruption. I could not agree more. Given the reach of the Internet, and its international character, I believe a comprehensive regulatory program is a necessity. The passage of the LoBiondo bill to prohibit Internet gaming in the U.S. outright, will only serve to create a domestic black market for it - a market that may be beyond the reach of American legislators and regulators, but not the vulnerable public. U.S. attorneys would be forced to seek otherwise confidential information from Internet service providers to prosecute individuals who play from their homes.