As reported by: Chron.com
Late last month, as Congress rushed to adjourn, lawmakers passed legislation that would make it a crime for credit card companies and banks to send payments to Internet gambling sites.

The measure was attached at the 11th hour to an unrelated bill on port security. If the president signs the legislation, as expected, it will have major implications for the millions of Americans who gamble online. It will also likely lead to a temporary halt in domestic online betting, which will result in billion-dollar losses for Internet gambling sites.

While these would be significant outcomes, they are probably not that important for the overall economy. Consumers will find other ways to spend their money, either in casinos or elsewhere. The bigger economic story is how this act, by effectively prohibiting Internet betting, could unintentionally slow the emergence of new tools that have the potential to improve the productivity of the private sector and the government. Sadly, this is an aspect of the measure that both its supporters and its opponents seem to have overlooked.


Article By: Chron.com