Online Casinos – Inching Towards Legalization
The breaking news making headlines this week comes from New Jersey. The State has finally shown some much needed gumption and has thrown its weight in support of the online casinos. In fact, it has already made the necessary legal moves to offer legalized internet gambling out of Atlantic City by the end of the year. New Jersey has therefore become the first state in the country to officially acknowledge the vast potential of online casinos.
New Jersey, like many other states, has experienced the whiplash of recession and economic turndown. The state budget needs an impetus in the form of some much needed funds so that the effects of recession can be minimized. The rapidly expanding online gambling industry could be the solution to its current economic problems. While many states have been actively considering giving a stamp of approval to internet gambling, New Jersey has surprised many by becoming the first state to act on the legislation so quickly.
It was a simple decision to make as illegal internet gambling was already thriving throughout the state. By acting on the new regulations promptly, New Jersey has given itself a chance to lay its hands on the gambling revenues quickly to fill in the state coffers. It can also help save the floundering land gambling industry in Atlantic City.
The once flourishing land gambling industry has taken a solid hit throughout the US because of the economic downturn. Atlantic City in particular, is among the worst hit and has not yet recovered to pre-recession levels. The Senate Wagering and Tourism Committee have already given preliminary approval to the New Jersey proposal for regulating online casinos in the state. It is now certain that the Senate and the rest of the House will move things faster by making the necessary adjustments and push through the legislation legalizing internet gambling.
For the land gambling industry, Atlantic City is a centre of fun and amusement. New Jersey has proposed that the land gambling companies be allowed to supplement their incomes by including online internet gambling to their line of business. This is sure to draw huge traffic to both New Jersey and Atlantic City, once the regulations are in place.
Licensing of online casinos is also finding major support in Central America and the Caribbean. They have fully regulated their gambling markets so that they can license their online casinos and help bring in revenues, rather than allow these companies operate outside the country. Like New Jersey, Belize is the first country to take the initiative towards online casino licensing. The companies receiving Belizean licenses must follow certain rules such as maintaining a bank account at the Central Bank of Belize, in Belize. This helps the government to have control over the funds and deduct taxes and licensing fees when it is due.
Online casinos and gambling companies favor doing business in Belize because the tax on foreign business is low. Although, there is a stiff annual licensing fee, it works to the overall advantage of the casino operators in the long run. The current trends show that most of the countries have started taking definite steps toward legalizing online casinos and gambling companies. It is just a matter of time when we will see online casinos becoming an important revenue generator for the Federal government.