eBay Supports Online Gambling Ban

February 9, 2008

In what came initially as a surprise to many, eBay has joined forces with the online gambling opponents, and has thrown their support behind Rep. Bob Goodlatte. Goodlatte has been attempting to push through a bill that would ban online gambling, and many thought for some reason that a company such as eBay would not support such a bill.

It does not seem prudent that an internet company of the size of eBay would want the government regulating and inspecting what they do, but this is just what eBay has signed on for. If the bill were to pass, congressional regulation of the internet would be business as usual.

There have been those that say that they are trying to curry favor with Goodlatte, to put them on his good side. However, others know that it is more about eBay protecting themselves. By supporting the bill, they could very well be creating a monopoly of sorts so that they can continue making money.

It all comes down to a question of PayPal. Once involved in the online gambling industry when owned by other people, once it was sold to eBay they made it illegal to use the site for online gambling. Other companies do what PayPal used to do instead as they are located offshore and can do pretty much what they please.

However, if Goodlatte�s bill passes it will make it illegal for these companies to have anything to do with US citizens in as far as online gambling or anything else that the government deems inappropriate. They will be shut out from the basic purchases as well, which leaves eBay and their PayPal to pick up the pieces and thus have their very own monopoly. Sure other companies will build on those ideas, but not before PayPal makes a killing.




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