In the past 10 years internet gambling has grown from almost nothing to a more than $6 billion industry worldwide. Hundreds of so-called “internet casinos” have sprung up, and nations are butting heads over issues of free trade.

This makes internet gambling a viable growth industry. This is particularly so in the Far East where many of the internet gambling sites are located. Another area where internet gambling is a big industry is the Caribbean in the nation of Antigua and Barbuda where more than $33 million of the island’s $200 million annual revenues come from internet gambling.

Perhaps the biggest opponent to internet gambling is the United States federal government. Citing a 1960s regulation designed to prohibit using a telephone to place bets, the U.S. Justice Department insists that internet gambling is illegal and has moved to ban transactions with foreign sites.

As a result, in 2002, Citicorp, the world’s largest issuer of credit cards, agreed to stop processing payments of online gambling transactions using its cards. Because of that, Antigua and Barbuda in 2003 filed a complaint with the World Trade Organization claiming the United States’ ban had cost the nation some $90 million in income.

The WTO ruled in favor of Antigua and Barbuda, but the Justice Department has vowed not to change its position, claiming the WTO has no authority to force a change in policy.

Tax revenues from legal gambling operations in the United States also amount to big dollars. For example, the state of Iowa, hardly known for its high rolling reputation, pulled in $197 million in 2000 in taxes and fees from casinos and race tracks in the state.

Opinion is mixed as to whether legal internet gambling would help or hurt the domestic economy. Opponents say legal internet gambling would cut in to the tax revenues produced by current legal gambling enterprises. Others, including lawmakers in North Dakota who have tried to pass an internet poker bill in the state, claim it would reduce pressure on legislators to raise property and income taxes.

Opponents also cite statistics that show most states that have enacted lotteries have seen an increase in unemployment and that money spent gambling on foreign sites goes to companies that do not pay taxes in the United States. This would have a negative economic impact, they assert.

Advocates of online gambling would not agree. In Nevada, where limited internet gambling has been approved, experts estimate online betting could capture up to 15 percent of the gaming market and could account for up to $230 million in state tax revenue its first two years.