State budget running dry while online gambling is a $52 billion tax revenue

4.4 million jobs have been lost already since the beginning of the recession, with 651,000 jobs lost only last month. Above mentioned facts come to 12.5 million Americans currently being out of work. Moreover, state budget originally collected through taxes from revenues, which are in turn collected as a result of consumer spending, is getting even weaker, consequently effecting unemployment benefits, food stamps and healthcare of those without work or insurance. 

House Banking and Finance Committee Chairman Rep. Barney Frank (D-MA) noted that online gaming would represent $52 billion dollars in tax revenue and said a bill to overturn the Unlawful Internet Gaming Enforcement Act (UIGEA) would come soon. In such harsh times, even usually conservative Utah lawmakers with mostly prohibited gambling and drinking are willing to welcome the bill. However, the US government might be too late to put the bill into action, while there is already another action proposed by World Trade Organization (WTO) over US bill to protect trade practices.

At the same time many states, including California, New Jersey, New Hampshire and North Dakota are working on their own online gaming bills. California plans to make the UIGEA unenforceable by the Justice Department inside the state. New Jersey is working on linking state lottery systems together and creating a complete online gambling solution. New Hampshire and North Dakota will be providing online interstate gambling using existing successful platforms. 

Congressional Republicans had passed the bill, in the form of the UIGEA, which instead of effecting legal gaming, made the payments system illegal. Additionally, US banks chose to play it on the safe side and refused to process online lottery payments at all. As a result, online gamers have lost huge revenues.