The report by VIXIO GamblingCompliance shows that Wire Act is the major problem for the American bookmaking industry. The old law stands as the biggest legislative obstacle for the sector's growth and allows Congress to limit betting initiatives. Login Casino follows the latest betting news, presenting the results of the survey about the US bookmaking pains.
An independent gambling provider VIXIO GamblingCompliance published a scalable survey about the problems in the US betting industry. The participants were asked diverse questions concerning the recent situation in the sector and possible solutions.
The majority of participants consider Wire Act as a problem
Even though American states are confirming their plans to legalize the bookmaking industry, 27% of the participants see the Wire Act as the main obstacle. At the same time, 18% insist on the lack of offshore enforcement in the country, which impedes the development. Both tribal gaming restrictions and high tax rates were chosen by 12% of interviewees as the core issue.
Such finding directly correlates with the numbers received for another question. Thus, 34% of the respondents highlighted the adverse Wire Act ruling as the industry's most concerning scenario. To understand the difference, the following three items, which are integrity/match-fixing scandal, federal legislation, and advertising backlash, received no more than 13%.
However, all the previous rates can seem inconsistent after looking at the next question. Thus, 54% of participants were sure that the Wire Act was the key obstacle for Congress to cope with restrictions. In this regard, 17% for Federal minimum standards and 14% for enforcement mechanism look poorly, while other answers gathered no more than 6%.
Interestingly, the only question where the Wire Act did become a headliner was the most burdensome restrictions. The federal document shared the first place with the need to have servers in every state, while high taxes and the necessity to have multiple partners were also highlighted as the vital problems for potential betting businesses.
Other interesting findings
Although the US has 22 states that regulate bookmakers since 2018, the sector's active development is undeniable. Thus, almost 44% of respondents said that regulation is changing way faster than expected, while another 19% also positively reacted to the expectation/reality ratio in terms of legislation changes.
When discussing the future, 53% of the respondents highlighted the importance of mobile wagering as the key instrument to deal with COVID-19 outcomes in the bookmaking sector. However, 24% consider an accelerated rollout of the iGaming sector as the way to cope with recent problems.