Economic Projections
Despite being illegal in the United States, online gambling is an extremely popular activity for many Americans. Market projections made in 1999 and 2000 predicted robust growth for the industry particularly if it became regulated. For example, Christiansen Capital Advisors, LLC, predicted in 2000 that a regulated industry could generate as much as $231 million in tax revenues between 2003 and 2005 and achieve an average 15% market share. However, the unfavorable political climate for online gambling caused many analysts to downplay their market projections during 2002. The lowered expectations are blamed on legal issues and the reluctance of credit-card companies and other cash-handling services to process online gambling transactions.
Determining Where Online Gamblers Are
Being able to determine the geographic location of online bettors is essential to the legalization of online gambling in the United States. State governments will not legalize the industry unless they can regulate it and tax it. Industry insiders believe that high-tech computer systems utilizing global positioning, prepaid "smart cards," and/or fingerprint recognition need to be developed to ensure the location and age of online gamblers.
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