The Unlawful Internet Gambling Enforcement Act, published in 2006, put bounds to the American gambling market, whose gains were estimated at more than $5.6 billion at a time. The step taken turned out to be insufficient, since the offshore gaming is still in place.

Moreover, it prospers as cryptocurrency based real cash wagering. The offshore companies provide American players with the opportunity to gamble in the so called “social casino” via social networks, thereby causing the tax leakage.

The Act has already been extremely beneficial for the offshore gaming growth with $5.6 billion vanishing from the country annually. In terms of igaming software development it resulted in the slowdown of the US IT sector and gave Europe the possibility to build up its own capacity with the impressive annual $17 billion revenue in the period from 2005 to 2015.

Switzerland is a good example of how over 90% of the casino profit can be used in the interests of the state. No gambling ban in the USA and tax revenue in the amount of $20 billion annually could mean job security for quite a number of American employees. This sum is also enough to build 4 top-of-the-line airports serving around 30 million passengers every year each .

Over the last decade numerous efforts to undermine the imposed prohibitions have been made. However, the legal gambling activity has not undergone sufficient changes, bringing into the spotlight March Madness events raising around $10.4 billion in bets in the year 2017 only. Both stately legalized and regulated, Toto ensures fair gaming conditions and safe payouts as well as tax revenue to the Federal treasury.

How is it possible to implement these kinds of regulations on the Internet? Using the blockchain technology may become the good response for both sports and pool betting.

Dealing with smart contracts as an integral part of this system, bookmaker undertakes the commitments under which all payments are guaranteed by an American banking institution and are checked on the way by the IRS. Players’ deposits are to be perceived as online exchange operations and do not differ much from a usual currency conversion. As far as bets are concerned, winning process is a safe and transparent payout with no delay .

Smart contracts are effectively secured with the hash at the moment they are signed. All obligations are implemented immediately after the bets settlement, while payouts are processed by banks or a corresponding state agency.

That gives no way for fraud. Providing guarantees and fair conditions, IRS keeps all players’ bets under control from the moment they are actually made and smart contracts come into force, turning a bookmaker into a service providing entity.

Malta-licensed company, Stakers Sportwetten has become the  first in the industry to offer smart contracts to its players. 

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