With all the proposed changes in the U.S. online gambling market since the new stance of the Justice Department was released, there are many states scrambling to pass legislation in order to benefit from the potential revenues generated by online gambling taxation.

The New York Times published an article today addressing some of the crucial issues. The million dollar question that needs to be answered is how much exactly the individual states will profit from the proposed changes.

States like the District of Columbia and Nevada have wasted no time in taking measures to legalize online poker. Iowa is another example of where state officials have begun studying their options.

California and New Jersey have been among the leaders in the race to legalize online gambling with New Jersey Governor stating that it is his intention to make New Jersey the “epicenter” of online gambling.

Iowa has already released a study which shows that legalizing online poker could bring in between $3 million and $13 million to the state coffers. Supporters for the legalization of online poker in California have estimated that revenues could range from $100 and $250 million which would help the state coffers.

Supporters of legalization of online poker in California such as State Senator Lou Correa stated that despite the fact that the estimated revenues might seem relatively small in comparison to the state deficit, the potential revenues can go a long way to help in many social areas such as adding teachers to the education sector.

It is important to note that most sites are only looking to legalize online gambling within their state borders which would mean that both the operators and gamblers themselves would be within the state.

The new stance of the Justice department on the Wire Act of 1961 could however enable states to join other states in a bigger online poker market.

States like the District of Columbia have bigger plans than just online poker. They plan on offering blackjack and Bingo in an attempt to gain more of the potential revenues.

New Jersey lawmakers have also gone further than other states in that they tried to legalize all types of casino gambling on the internet.

The situation has best been summed up by well known analyst I.Nelson Rose, a professor at Whittier law School who predicts that states will move faster to legalize internet gambling then they did to establish lotteries which operate in 43 states.

Rose summed it up brilliantly, ”The speed of the Internet is more like dog years,” he said. “It is not going to take four decades. It won’t even take one decade.”

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