In the early 1970's, legal organized gambling in the U.S. existed only in the glitzy casinos of Las Vegas, Nevada and Atlantic City, New Jersey. But due to significant public demand and massive revenue generating abilities, numerous forms of organized gambling ranging from horseracing to state-operated lotteries have blossomed across the country. Operated either by state governments or regulated private entities, some form of legalized gambling exists in 47 states and the District of Columbia.

With annual revenues growing by more than 1,600 percent between 1976 and 1997, the nation's gambling industry currently grosses over $50 billion a year. Looking to expand potential profits, gambling organizers have turned to the Internet to attract more players. Over the last four years, hundreds of virtual casinos have found a home on the Web where people can place bets online by opening an account with a site and pay their losses with credit cards.

Due to gambling laws that vary from state to state and the 1961 Federal Wire Act that prohibits the use of interstate phone lines to place wagers on sporting events, most of these online casinos are based in foreign locales, especially the Caribbean. Unable to influence laws regarding Internet gambling in these offshore areas, several U.S. lawmakers have proposed various pieces of legislation to prohibit U.S. citizens from gambling online. One such bill, the Internet Gambling Prohibition Act of 2000, failed to gain the 270 House votes required for passage under procedural rules on July 17.

On One Hand...

Gambling is a highly addictive venture whose costly stakes destroy families and careers, raises crime rates and leads to the creation of pathological gamblers. Allowing online casinos to enter American homes and businesses via the Internet exposes an increasing number of adults and impressionable youngsters to gambling.

The federal government must enforce existing laws, including the Federal Wire Act, and enact new measures to prohibit Americans from gambling on the Internet. Any bans on Internet gambling must be total and without exemptions for particular segments within the gambling industry.

On the Other Hand...

Organized gambling provides the U.S. invaluable economic stimulus through job creation and taxation. Not only would prohibiting online gambling amount to a massive loss of public and private revenue potential, it would cost the federal government and taxpayers untold millions of dollars to effectively prevent U.S. citizens from placing wagers over the Internet.

Prohibiting Americans from participating in online gambling will also slow the growth of the Internet and delay online technology developments. Lawmakers should look to regulate online gambling operations rather than isolate Americans on the Web.

• It is estimated that the Internet gambling industry, with over 400 Web sites, grossed $1.1 billion in 1999.

• Organized gambling has created over 700,000 jobs and generated $21 billion in wages.

• It is estimated that the Internet gambling industry will gross $3 billion in 2002.

• Over 700 Internet gambling sites currently exist.

• It is estimated that the nation's $14 billion horse racing industry receives 30 percent of its business over the Internet.

• Gambling is illegal in Utah, Tennessee and Hawaii.

  Wired, USA Today, National Gambling Impact Study Commission, The Washington Post