The UK has recently responded with 14 million pounds of fines, and the license cancellation of some operators, plus strong rules against the advertising and marketing of casino games.

In the US, we need to be careful what games, if any, should be allowed online. First, they keep players from visiting licensed gaming establishments, and now with the addition of sports betting, we are adding hundreds of new in-game and proposition bets, for most football or basketball games, likely to increase the growing number of compulsive gamblers, in those states approving online sites, and adding sports betting.

The tax potential for sports betting is marginal, compared to slot machines and table games, as the bets have to compete with bookies and illegal overseas operations, that pay no tax, and have questionable oversight. In Nevada, the hold on amounts bet is usually in the 5 percent range, with the operator having to cover federal and state taxes, as well as marketing and operating costs. The best outcome from sports betting would be to restrict in-game and proposition bets to live gaming establishments. This would produce more tax revenue and earnings for gaming operators, because these bettors would likely participate in food and beverage sales, and even play some of the available casino games.

New Jersey is the only state that needed online gaming, as over 90 percent of their population is closer to a gaming establishment in New York and Pennsylvania then they are to Atlantic City.

Atlantic City has seen its casino revenues decline by $3 billion, since Pennsylvania approved slot casinos in 2006. Online gaming has saved less than 10 percent of the lost casino win, producing only $250 million in new revenue. And to mention, New Jersey’s senior and disabled programs are losing over $200 million annually, around $2 billion since 2006.

Other states that have approved casino or riverboat gaming, slots at racetracks and other forms of gaming, have multiple gaming locations around their state that make it more convenient for its citizens to find their favorite game or bet on a favorite team.

Online gaming, with sports betting, is an issue that those states considering them should carefully analyze. Compare the positive side of direct taxation against the harm to revenues and taxes from live establishments. Illinois, that has added over 6,000 locations, with over 26,000 video gaming terminals, has had a devastating impact on their riverboat casino industry, with a minimal increase in taxes and likely a negative impact on total jobs.

Pennsylvania is another state that has approved online gaming and sports betting and will be an excellent example to see what negative impact online sites have on the established gaming operations.