Online gambling could be legalised in the US, and this is how
Stakers, the igaming startup from Malta introduces blockchain technology for gaming industry.
Published in 2006, The Unlawful Internet Gambling Enforcement Act has frozen the iGaming industry in the US, which was estimated in Gross Gaming Revenue of over $5.6 billion at a time. Taken measures were not sufficient – the offshore gaming still takes its place as real cash wagering, bitcoin based and flooded social network sites as free-to-play “social casino”, mushrooming multi-million offshore companies just on Facebook, leveraging from the US market tax free.
The Act was obviously the logical solution to offshore gambling with $5.6bn flying away from the country each year, but that also closed the US IT sector from developing igaming software for abroad and gave Europe the opportunity to build the igaming sector grossing at $17bn after tax in 10 years with the growth rate from 2005 to 2015 of 328%.
Looking at Switzerland, the casino tax could be over 90% of its profit, and that works. For the US that would mean $20bn dollars of taxes annually, keeping the global trend and tens of thousands working places across the US. That is enough to build 4 brand new airports every year with the capacity of 30 million passengers each. After 11 years, there were a few attempts to defraud the industry with poker sites launched in certain States. It still remains unclear how liquidity from the US players would be moved Interstate or in offshore to bot players from Panama.
With the struggling legislation process of poker sites the March Madness 2017 loomed at 70 million brackets worth of $10.4 billion in bets. According to the Internal Revenue Code, all gambling winnings are to be reported as income. Pools are fair, evenly priced with guaranteed payout to players and further taxes paid.
How can we repeat that online? – Blockchain is the answer. And that works for sports and pool betting models only.
Bookmaker liquidity must be secured with the US bank, passed through the IRS, and granted to a bookmaker as crypto-currency for use. Player deposits should be treated as online currency conversion, just how the standard currency conversion works. The next is the bet, it must be secure, with the winnings guaranteed by the bookmaker liquidity, and paid out instantly with the score coming in.
The excellent part of blockchain is a smart contract, signed by 2 or more parties and digitally signed with the computed hash. Smart contract is executed as final with the score coming in, and paid out by the bank or a Federal agency, leaving no fraud options – IRS has a control over all player bets in real time as those are deposited and smart contracts signed, players are guaranteed with their odds and payout, a bookie turns to a service company. That’s it.
Stakers, a startup from Malta, was the first company to introduce smart contracts to its players. Stakers.com does not accept players from the US and America.