User profile: nortongaming

In the July 13 Boston Globe, Matt Viser reported on the position of U.S. Rep. Barney Frank, D-Mass., regarding Internet gaming. Rep. Frank is 100 percent correct that individuals should be able to make their own decisions on how to spend their discretionary dollars, even if this spending goes toward casino gaming or the state lottery.

His stance on allowing Internet gaming should be expanded to include a tax rate that puts the Internet in a position that is no more favorable than commercial casinos, racetrack slot operations or various state lotteries.

Since Internet casinos have little in capital expenditures, like the $1 billion or more of a resort casino, and will be very competitive with any state lottery, their taxes should provide, at a minimum, a comparable percentage of revenue to that state's lottery. Certainly Internet casinos could pay taxes similar to the various racetrack casinos that generally vary from 50 percent to 60 percent of the slot machine win.

They also should pay license fees for the right to offer their service in any state; that depends on a bidding process or a statutory initiative. In Pennsylvania, the one-time fee for a slot casino is $50 million, and in Indiana, $250 million.

Additionally, to keep the games honest and the operators suitable, there should be an approval process before issuing a license, and continuous oversight like that provided by a gaming or racing oversight agency, similar to those existing in all commercial gaming states.

Another major concern is how to stop minors from gambling at their homes? Even children as young as 3 years are proficient on the computer and Internet today and play games more difficult to understand than casino games.

Clearly, compulsive gambling is the gaming industry's major negative impact, and I always felt that state lotteries caused the biggest problem because of their convenience, in every community, in those states offering lottery games. But the Internet is that much more convenient, at work and at home, and there must be a foolproof way to stop those under 21 (or 18 in some states) from risking real money.

America is already gaming on the Internet illegally, and the United States has found it nearly impossible to eliminate it, even after stopping the use of credit cards. But the U.S. has received an unfair trade practice ruling from the World Trade Organization regarding a suit brought against us by Antigua and Barbuda over their Internet gaming operations, and it could be that Internet gaming may be inevitable.

Let's make sure U.S. states get suitable taxes and fees, so that the Internet is not offering unfair competition to the gaming that is already legal in most states, including lotteries, casinos, racing, Jai-alai, poker and charity bingo, and let's make sure minors are protected!

Steve Norton