Prohibition Ii: Good Grief

The new law actually legalizes online betting on horse racing, Internet state lotteries and some fantasy sports. The horse- racing industry is a powerful interest. The solidarity of the political class prevents the federal officials from interfering with state officials' lucrative gambling. And woe unto the politicians who get between a sports fan and his fun.

In the private sector, where realism prevails, casino operators are not hot for criminalizing Internet gambling. This is so for two reasons: It is not in their interest for government to wax censorious. And online gambling might whet the appetites of millions for the real casino experience.

Granted, some people gamble too much. And some people eat too many cheeseburgers. But who wants to live in a society that protects the weak-willed by criminalizing cheeseburgers? Besides, the problems--frequently exaggerated--of criminal involvement in gambling, and of underage and addictive gamblers, can be best dealt with by legalization and regulation utilizing new software solutions. Furthermore, taxation of online poker and other gambling could generate billions for governments.

Prohibition I was a porous wall between Americans and their martinis, giving rise to bad gin supplied by bad people. Prohibition II will provoke imaginative evasions as the market supplies what gamblers will demand--payment methods beyond the reach of Congress.

But governments and sundry busybodies seem affronted by the Internet, as they are by any unregulated sphere of life. The speech police are itching to bring bloggers under campaign-finance laws that control the quantity, content and timing of political discourse. And now, by banning a particular behavior--the entertainment some people choose, using their own money--government has advanced its mother-hen agenda of putting a saddle and bridle on the Internet.

Gambling is, however, as American as the Gold Rush or, for that matter, Wall Street. George Washington deplored the rampant gambling at Valley Forge, but lotteries helped fund his army as well as Harvard, Princeton and Dartmouth. And Washington endorsed the lottery that helped fund construction of the city that now bears his name, and from which has come a stern--but interestingly selective--disapproval of gambling.

© 2006