Although online casinos may need some regulation on a federal level, it is likely that legalization will be left up to various states.  After all, not every state in the nation allows gambling, just most of them.  But this could be just the thing that many states are looking for.

Gambling expansion has long been a solution for states looking for additional revenues.  But gambling expansion, at least in the physical, brick and mortar sense causes a lot of issues long after all the debates over new legislation.  There may be a lot of back and forth over whether the state should bring in new slot machines or build new casinos, but there rarely seems to be a town or neighborhood that willingly invites new gambling structures into their neighborhoods.

Brick and mortar casinos become the center of the night life.  New casinos turn neighborhoods upside down.  Once quiet communities are bustling late into the night and early in the morning, traffic becomes a constant, and night noise grows from the hum of insects to the honk of horns.  But that is the price residents pay for gambling revenues that help support schools and fund scholarships. 

Online casinos completely obliterate that problem.  Regulating and taxing online casinos can bring in the same incredible revenues as brick and mortar establishments without all of the social troubles.  The only highway that gets congested with online casinos is the Information super highway.  And if things get to noisy at night, neighbors need only ask the guy next door to turn down his computer speakers.