Dr. Neil Hair

The recent decision by the US government to ban all forms of online gambling is troubling me. Culturally I have no problem accepting the mores of another land and realized when I emigrated that gambling was not considered as 'mainstream' as it is in the UK. In the UK we have casinos in most major cities, dog tracks, horse raising, betting shops like William Hill, you'll see old men playing dominoes or cards in local pubs. I grew up in a family where my grandmother was a substantial gamer in the sense that she would bet all the time (isn't bingo a form of gambling?), play the one arm bandits and her sons on a Sunday morning for small stakes (Nap being the game de rigeur). She was also particulary fond of scratch cards. Amusingly she showed no interest in the internet until I told her she might be able to play bingo 24/7/364 instead of only on Sunday nights.

I don't gamble. I have no interest in it and never have (but youre married I hear you cry). So why do I think banning it online is a mistake? There are of course arguments about it being a freedom, a right, there are equal arguments about it being an addiction, a scourge, a wrong. Putting all of that aside for one minute (where of course I would encourage you to form your own opinion, not state mine) I have a more generic issue with it being banned wholesale in the USA. I believe it will stifle innovation in what is a highly innovative 'gaming' landscape. If we can see beyond the obvious issues of gambling addiction and minors playing with their parents money, there is underneath it a very healthy form of innovation taking place that is taking advantage of the technology of the internet. The social aspect of this phenomena was also interesting and worthy of study, pockets of micro communities that have grown from its existence with strong social bonds. As a business model one cannot deny its appeal (the gambling oases of Vegas et al must be loving the decision) but for me it was the way in which these online companies were using the net to facilitate greater experiences online that I will miss – especially as these innovations are transferable to other industries. 

As an Englishman I am also upset that British companies were instantly denied access to its largest market for online gambling – the USA (which makes up 95% of the world market). Cheer up guys, there's always China. It also raises several interesting questions about how this new law will be policed in cyber space. Will it just force it (and its tax revenues derived from it) underground? For me though it is the irony of the worlds largest capitalist system turning its back on one of the internets most profitable and innovative industries which I find upsetting. American competitiveness in this industry appears to be the main looser.