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Gambling in the United StatesGambling, often referred to as "gaming", had 2006 gross revenues of $90.93 billion, and thrives in the United States despite being restricted. Gross gambling revenue is the amount wagered minus the winnings returned to the players. It is a true measure of the economic value of gambling. Proponents of gambling in the United States say it provides valuable tax revenue and job opportunities. Commercial casinos provided over 354,000 jobs, and yearly state and local tax revenue of $5.2 billion as of 2006. Some community groups oppose gambling because they say it leads to increased political corruption, compulsive gambling, and higher crime rates. Analysts note that gambling amounts to a regressive tax on individuals in local economies. According to the American Gaming Association in 2000, the legal gambling revenue was broken down into percent of gross revenues by sector:
Authorized formsMany levels of government have authorized multiple forms of gambling in an effort to raise monies for needed services without raising taxes. Included are everything from bingo games in church basements, to multi-million dollar poker tournaments. Sometimes states advertise revenues from certain games to be devoted to particular needs, such as education. When New Hampshire authorized a state lottery in 1963, it represented a major shift in social policy. No state governments had previously directly run gambling operations to raise money. Other states followed suit, and now the majority of the states run some type of lottery to raise funds for state operations. This has brought about morally questionable issues, such as states' using marketing firms to increase their market share, or to develop new programs when old forms of gambling do not raise as much money. The American Gaming Association breaks gambling down into the following categories:
LegalityGambling is legal under US federal law, and each state is free to regulate or prohibit it. If state-run lotteries are included, almost every state can be said to allow some form of gambling. However, casino-style gambling is much less widespread. Nevada is the only state where casino-style gambling is legal statewide. Both state and local governments impose licensing and zoning restrictions. All other states that allow casino-style gambling restrict it to small geographic areas (e.g., Atlantic City, New Jersey, Tunica, Mississippi, or riverboats), or to Native American reservations. (Some are located in or near large cities). As sovereign nations, Native American tribes have used legal protection to open casinos. Their operation of casinos has been a contentious political issue in California and other states. In some states, casinos are restricted to "riverboats", large multi-story barges that more often than not are permanently moored in a body of water. Online gambling has been more strictly regulated. The Federal Wire Act of 1961 outlawed interstate wagering on sports but did not address other forms of gambling. It has been the subject of court cases. The Unlawful Internet Gambling Enforcement Act of 2006 (part of the SAFE Port Act) did not specifically prohibit online gambling; instead, it outlawed financial transactions involving online gambling service providers. Offshore gambling providers reacted by shutting down their services for US customers. (Read more) |
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