Will the US authorities lift the online gambling ban?

10.20.2008 | 4:07 am | Taxes

There are sure signs that the US stance towards online gambling is softening as the recession in the US continues to grip every area of society. Income from traditional casinos is down, unemployment numbers are on the rise and it seems that we have yet to hit the bottom of the economic cycle.  But how will a lifting of the online ban assist with increasing tax income for the US authorities?

As well as the speculation regarding the lifting of the online ban there are signs that a deal is being organised behind the scenes whereby companies will pay some for of fee or tax to operate their online betting companies in the US.  As this was the largest market in the world before the ban was imposed it would still be a very lucrative move for many of the major sites which did once operate in that market.  So what next?

As we near the Presidential Election the chances are that all major policy decisions will be put on hold until the dust has settled.  While each candidate has mentioned the online betting ban in passing it seems as though John McCain may be the best bet for the online gamblers, but his chances of winning the election seem to be diminishing with each and every new day.  So will Obama do the business for the online betting community?

There is some debate as to whether Obama will be as aggressive in his pursuit to lift the ban as McCain might have been but the signs are still there that the ban will be lifted in due course.  US state by state income is suffering from the falling input of traditional casino taxes so they will need to look for an alternative as soon as possible.  Would an online gambling tax be the answer to the local state tax shortfall?