US Government Makes Online Interstate Gambling Illegal As Augur (REP) Crypto Betting Platform Could Feel Effects
U.S. Government Makes Illegal Online Gambling
The Government of the United States has made illegal all forms of online gambling that involve interstate transactions. The information was released by Bloomberg on January 16. The Justice Department of the United States decided to expand the federal prohibition on internet gambling, which is going to have a deep effect in many businesses across the country.
Back in 2011, the government decided to ban only sports betting. However, all internet gambling involving interstate transactions are currently banned. This will have a negative effect on online gambling.
The shares of casino operators and suppliers have been affected after this decision. Indeed, some of them dropped as much as 3.7 percent such as International Game Technology Plc. MGM Resorts International is down 1.3 percent.
Dennis Gutwald, an attorney with McDonald Carano LLP in Las Vegas said that the businesses that will be most directly affected are interstate lotteries that expanded and established themselves in the market after 2011.
This ruling will not have an effect on online gambling platforms in which wagers are located inside the state borders. However, casinos will now have to implement a physical presence and a security system to ensure that there are no bets from outside the state.
This decision to restrict gambling across states could affect the crypto-based betting platform called Augur, according to The Block. If Augur continues to operate in the U.S. market, this restriction could legally affect Augur and the whole project. Augur is a decentralized gambling platform that allows users to gamble in different issues such as sports and other events.
It will also be interesting to see which will be the effect that this decision will have on decentralized applications (dApps) that offer gambling services to its users. EOS and Tron (TRX) have several gambling dApps operating on top of their blockchains.