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-- be the next great revenue generator and many people argue it can be if they legalize it.
Online gambling in particular can be such a huge revenue -- our next -- seems to think so.
Professor John -- is professor of business and legal policy at the University of Illinois joins us on the phone right now professor thanks for being -- us.
I like we're having -- right feel -- Yeah it's going to be icy all over the place isn't it did John the next these next few days.
Now why do you think -- -- it would be so bad if gambling were legalized because I'm thinking.
Argued he takes the mafia element out you take all a lot of the criminal -- went out this legalized then it's all out on the table rights.
These issues have been coming up for years and years and -- -- back in the 1990s we had.
US national gambling impact study commissioned.
It is basically that that there are a lot of negatives associated with this -- that concert with three dollars for the taxpayers.
Every one dollar and Democrats.
And now we've got Barney Frank in the house financial services committee.
Proposing the next speculative bubble they weren't satisfied with being largely responsible for the sub prime crisis.
Now they're proposing he regulating.
-- they say they're gonna regulate it.
It will on the Internet right well let the National Commission said you've got a prohibitive.
It doesn't -- you can't regulate it and we just have a new red flag reports -- the university got bought 3000 pages brief audience.
Which doesn't think -- that that's even worse.
-- we had seven years of congressional hearings on this but what we passed the 2006.
Unlawful Internet gambling enforcement act.
Which which gave increased enforcement authority to the banking industry US Justice Department and other enforcement that mechanism.
But so are you people professionals like any duke.
Police Blair alliance spokesperson she testified.
In rent -- house judicial hearing on online gambling she is more it.
This could actually be -- fairly decent revenue raiser par states as well mean since you haven't poker community behind us.
Well well you know Okur is not the name of the game here what we're talking about is gambling at every -- -- It every living room edit every school that's been in young people are short double -- gambling addiction rate that the older generation that is evident.
The national gambling impact study commissioned the new 2000.
I'm united states international -- -- report.
Hundreds of pages on this here's a testimony from the Justice Department -- otherwise but it just doesn't work.
It's going to create huge social and economic costs.
So that's where you're caught having to that was my next question is the cost in regulating now if it becomes legal was the cause -- after the fact.
Almost from a health standpoint trying to get these people who are addicted to gambling off gambling or out of financial difficulty because of the -- they've had.
Yeah good point suddenly the national gambling impact study commission which had a lot of pro gambling people that loading members from -- you know.
Indicated that you can't regulate the Internet gambler you'd have to prohibited and keep the probation and quite.
And that's because.
That he -- the mechanisms for getting a round.
-- loss that we party have our.
I -- what we're -- entrepreneurial groups that are already trying to work what's going on here move really -- we're we're we're not talking about poker.
We're talking about electronic -- like that's 90% of the revenues of we're talking about here we've seen reports on sixty minutes and elsewhere what people are being cheated in Internet like.
If only to remember -- official position of the Justice Department has -- the FBI.
That gambling on the Internet is illegal it would hit cyberspace is illegal and are over thirty countries that also have.
They -- on gambling in cyberspace gambling on the Internet.
Because they recognize what we're talking about it is his -- The bridge weren't a part not a bad finish your thoughts are.
Are you -- both -- great point about the -- this going on Spencer Bachus.
The -- member of the house financial services committee in complaining about a 100 million dollar lobbying eight campaign.
-- yet this legalized darkness of the illegal activity 100 billion dollars coming up.
If people also ought to ask people what to gamble ought to ask.
If they're being treated fairly and regulating these slot machines as well electronic gambling that's going on already.
Well people like gable are -- being treated fairly we have to have congressional hearing on consumer product safety Bobby -- committee needs to hold hearings on the.
So are clearly happy you know our congressional leaders are seeing dollar signs thinking they can make money off of this that's why I think they're pushing this to go forward as well.
-- argument he made that it's a little.
Little like socialism you're basically telling me I can't make a decision myself to make wise decisions about gambling so you're just gonna prohibit it from the altogether.
-- don't go ahead.
In the end does do -- around the table type of it -- we're talking cable game.
Nobody cares about that we're talking about electronic gambling which 90% of the revenues of the world -- talking belt they're talking about enabling on the Internet.
This go to the crack cocaine -- -- -- it gamblers because they have -- addicted gamblers in a doubling its like drug addiction.
Bankruptcies are eighteen to 42% and areas which have this -- it would crime goes up 10% per year the taxpayer -- to -- -- -- -- we expect study commission.
The new United States -- national gambling report have reviewed all the believe me I can make a whole lot of money if I were simply say that this'll work.
-- other player lobbyists out there that hundred billion dollars -- -- comment on this illegal activity.
There are several others academics make a lot of money arguing the other side of the issue but we don't because the that the national statistics -- national reports indicate this didn't go to work.
It be great if it would work yeah I'll tell you what what -- work.
Is that if you lower back to the video being -- machine yard we have the electronic slot machines you would be dumping another hundred million dollars.
Into the economy that's -- 300 million -- half a trillion dollars in economic multiplier effect that would be pump priming the economy.
Gambling shrinks the economy it takes money out of the consumer -- yeah I think -- We -- people spending money on consumer -- I can tell the economy.
It's -- -- -- money out of my pocket when I was in college I decided that was clear I thank you professor Ken good to see.
Right president John can business and legal policy because at the University of Illinois.
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