Chapter 6: Between the Old and the New: Innovation in the Regulation of Internet Gambling
Colin Scott INTRODUCTION The takeoff of the Internet in the mid-1990s, linked to the development of the World Wide Web, has spawned a wide variety of new practices and applications of computing for both commercial and non-commercial purposes. These social and economic innovations have raised a variety of new challenges for governments, destabilizing, to some extent, state interests not only in regulation and law enforcement, but also taxation. Gambling on the Internet presents these challenges in a particularly acute form. The state is central to the nature of the market, and the existence, shape and activities of the (legal) market are determined by the regulatory framework to an extent which is unusual with other market activities (Collins 2003, p. 1). The destabilization effects are thus likely to be high. Paradoxically, perhaps, there is a high degree of dependence on non-state actors to provide solutions to regulatory problems (Scott 2004). In this chapter we investigate the regulatory response to the challenges presented by the Internet to public policy in the area of remote gaming. We compare the recent policy history of three jurisdictions, New York State, Australia and the UK and use this comparison to elaborate on the analysis of the nature of regulatory innovation. Innovation to meet new policy conditions might be explicable by reference to the capacities of key actors to consider the various options and put the best solutions into effect. But in this case the diverse patterns of regulatory innovation appear to owe more to contingent factors...
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