There are hardly any federal laws that libertarians will not oppose, so perhaps it willn’t come as a shock that categories of that leaning have generally come out against a ban that is nationwide of gambling. But a coalition of libertarian groups have experienced especially harsh words for the proposed ban, saying it may set a precedent that is dangerous how the Internet is regulated.

In a letter signed down on by ten libertarian-leaning teams, the bill was called ‘an improper and unnecessary usage of federal powers that infringes on the liberties of individuals and states.’ That letter was sent towards the leaders of both the home and Senate Judiciary Committees earlier this week.

Ban Would Hurt Customers

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Like a number of other groups that have come down against the Restoration of America’s Wire Act (also called H.R. 4301), the coalition argued that a ban would cause more harm than good for consumers.

‘As we have seen in the past, a ban will not stop online gambling,’ they composed. ‘Prohibiting states from legalizing and regulating the practice only means that it will be pushed back into the shadows where crime can flourish with small oversight. In this market that is black where virtually all sites are operated from abroad, consumers have little to no protection from predatory behavior.’

The groups that signed off on the letter additionally echoed statements made by organizations for instance the National Council of Legislators from Gaming States, who stated that the ban would represent federal overreach in areas typically kept to the states. In addition, they questioned whether the national government should control cyberspace therefore heavily.

‘By banning a select form of Web commerce, the government that is federal setting a troubling precedent and providing fodder to those that would like to see increased online legislation as time goes by,’ the letter reported.

Selecting Winners and Losers

The signatories also claimed that the ban was not a fair application of government power since the law would include carve-outs for some horse racing and lottery products.

‘This amounts to your government that is federal winners and losers choosing selected companies or private-sector businesses to succeed at the expense of others, which is at chances with free-market competition,’ they wrote.

The groups signing the letter included FreedomWorks, the Institute for Liberty, the Taxpayer Protection Alliance while the Alliance for Freedom.

Report Misrepresented by Both Sides, Author Says

The letter comes at any given time when both sides of the gambling that is online are working hard to make their situation. So very hard, in reality, that the authors of one major report say both factions have misused the knowledge they offered week that is last.

That report titled ‘Jackpot! Money Laundering Through Online Gambling’ was released by McAfee, and both relative edges immediately attempted to use its conclusions to assist their cause.

Sheldon Adelson’s Coalition to Stop Web Gaming said that the report proved that Internet gambling shall lead to money laundering efforts from crooks and terrorists. Meanwhile, the Coalition for Consumer and on line Protection, which opposes the ban, said so it showed that such schemes could just be stopped by regulating the industry in place of outlawing it.

According to report author Raj Samani, however, his paper suggests neither of those things.

‘For every licensed on the web gambling site, there could be up to nine unlicensed gambling that is online,’ Samani published, suggesting that exactly what America does when it comes to Internet gambling might have only a very minor effect on the matter of cash laundering.