The war between online gambling and the US gaming industry is getting heavy, as the government is intervening now. Why? Simple, many states receive a lot of revenue from the gaming industry. States like Nevada, Alabama and New Jersey and without this tax revenue they will have severe budget issues.

You might recall that the New Jersey Governor used threatened to close the NJ Atlantic Casinos if they state legislature did not come up with a budget. How much do states rely on this money? Well in NJ it is nearly 2 million dollars a day in tax revenue. See the point.

The Gambling Online sites are having a war with the Gambling Establishment in the US; Such as in Las Vegas, Tunica, Atlantic City, Gulf Coast. They have fought against the CT, CA, OK, IA and other Indian Casinos and lost in political and legal battles. China is now putting in Billion Dollar Casinos and the Asian Las Vegas crowd is dwindling too.

There is a war right now due to lobbyists and political interests against online casinos; a 250 Billion Dollar industry and it will grow. Offshore money flows, legalities and business interests are involved BIG TIME. Why is this even an issue from a regulatory standpoint? Well a couple of reasons.

The FCC handles communication and phone lines. Online Internet uses that system of communication. Also International Terrorists might use online offshore gambling to raise money to attack us. Additionally consumers in states where gambling is illegal might partake in this activity across stateliness and international borders as well. Consider all this in 2006.