The United Kingdom has announced that later this year, they will serve as host for the first international summit on online gaming. This announcement comes on the heels of ever increasing government concern over the impact it has on children and families and the potential for criminal infiltration.

Unquestionably the UK has been the leader in introducing regulatory framework for the gaming industry. Last year they became the only industrialised nation to enact legislation on the sector with the passage of the Gambling Act. The problem is that thus far, the UK is operating in near isolation on the subject as major industry markets like the US still refuse to enact legislation.

British cultural minister Tessa Jowell notes that: “This is a global problem and requires a global solution, which is why this summit is important.� In particular the goal is to ensure measures are standardized that prevent children from using gaming sites and prevent money-laundering operations.

The online gaming industry is growing rapidly with revenues of $9.3(USD) billion in 2004, a figure that will double very soon according to research provided by GamingConsultants. The scope of this industry will soon make regulations even more difficult to enact and the sooner legislation is in place, the better.
Australia, South Africa and New Zealand have accepted invitations while it is likely that online gaming jurisdictions like Malta, Costa Rica and Antigua will attend. The United States however, is responsible for over half of the online gaming revenues and it is still unknown if their representatives will attend.

While the US Department of justice maintains that online gaming is in violation of federal law, the legality of the industry remains uncertain. Efforts to ban Internet gaming have failed, as have attempts to introduce legislation.

This summit is a smart move in that it aims to solidify the future legitimacy of the industry. As the US appears to be turning a blind eye to the fact that they are the biggest revenue source in the industry, it presents a problem. When such a large portion of the industry refuses to work for the betterment of the sector, the entire industry is likely to feel a negative impact.

Article by Angela Ford