Abstract

DESPITE UNCERTAINTY CONCERNING the legality of gaming for cash or other consideration on the Internet in the United States, millions of Americans wager online more than $100 billion annually. Just as with the federal government’s attempt to prohibit alcohol consumption, before the repeal of prohibition, which resulted in regulation and taxation of the alcoholic beverage industry, it appears that government will ultimately conclude that it is better to regulate and tax online gaming. It has been estimated that nearly $41 billion for the U.S. Treasury could be generated by regulating and taxing the online gambling industry over a 10-year period.1

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