Well, iPhone applications are causing a fuss again. This time isn’t not an app for shaking a baby or snorting cocaine, though. This time it’s about gambling.

Australian parliamentarian Nick Xenophon is outraged about poker iPhone apps that allow children to play the popular card game, betting fake money. He says the apps should be banned because they teach children to gamble at an early age and could lead to gambling addiction.

Citing concerns that it would get children used to the idea of playing poker for money, he said that “kids can become poker machine experts years before they are legally allowed to set eyes on a real machine.” In Australia, you must be at least 18 years of age to place a bet in any of their casinos.

The iPhone apps addressed by Xenophon are applications that have been endorsed by some of the big-name online casino companies. Though the games are free and you only gamble with play money, Xenophon worries that it could develop a pattern and teach kids that playing poker is a good way to make money. He said that the iPhone apps are “a training application for kids to lose real money when they turn eighteen.” Most of the apps do not have age restrictions.

Though he would like to ban them outright, Xenophon acknowledges that removing access to them in the country may not be possible. As a more realistic goal, he intends to push for legislation that would make it illegal to provide the iPhone gambling apps to children.

Daniel Tzvetkoff doesn’t appear to be a bright man. After allegedly ripping off lots of online casino operators, he showed up at a conference in Las Vegas that was full of them and was surprised when he ended up in jail.

Let’s go back to the beginning. Mr. Tzvetkoff, who is an Australian citizen, was arrested on Friday for bank fraud, money laundering, and conspiracy to operate and finance an illegal gambling business. According to the indictment, he created fake websites for shell companies and used those companies to engage in financial transactions with financial institutions. All transactions were sent by these shell companies. Mr. Tzvetkoff allegedly used an Automated Clearing House (ACH) system to funnel hundreds of millions of dollars between the United States and the British Virgin Islands.

Using the ACH transactions, Tzvetkoff, former co-owner of IntaBill, allegedly moved money from the bank accounts of online gamblers in America to his offshore shell companies. From there, he moved the funds to accounts at online casinos. The shell companies were used to move money back and forth between the online casinos and the player’s accounts.

The American legal system has a term for those types of transactions: money laundering. According to the indictment, the online casinos stopped doing business with Tzvetkoff in March of 2009 because he had stolen $100 million from them. On Friday, Tzvetkoff appeared at a conference in Las Vegas attended by representatives from many of those online casinos. Not surprisingly, a tip was called in to the FBI and Tzvetkoff was arrested a short time later.

I think there are some lessons to be learned here. First of all, don’t launder money or commit bank fraud. Secondly, if you rip off a group of people for $100 million, don’t go hang out with them at a social event.

If convicted, Tzvetkoff could spend 75 years in prison and pay back at least $543 million in fines and restitution.

Generally speaking, governments tend to work very slowly. This is mostly because they are very inefficient machines that have more impediments toward getting things done than stuff put in place to help getting things done. Bureaucratic red tape clogs the works and keeps things moving at a snail’s pace. For just two examples in the United States, look at the Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed in 2006 yet won’t take effect until June of this year at the earliest, and Obama’s healthcare reform act, which is now passed yet the supposed “benefits” won’t kick in until at least 2014.

It’s not just the U.S. government that represents the model of inefficiency, though. Pretty much every government is like that. Right now that inefficiency and inability to get things done in a timely manner is really hurting the government of South Africa.

In 2008, the country legalized online gambling and passed legislation that would regulate and tax the industry. The new law allows for up to ten online casino operators to set up in South Africa and begin serving their citizens. Those casinos must be approved for a license by the Minister of Trade and Industry, Rob Davies. So far, for reasons unknown to me, he has yet to give the okay to a single online casino.

As a result of the political foot-dragging, ineptitude, or whatever is going on, black market online casinos have sprung up and become major players in the industry. The people of South Africa are now getting their online gambling, but the government isn’t getting the tax money. Not only that, but there is no government agency assuring the fairness of those casinos.

Last week, government officials met for the national Gambling Review Commission (no, we’re not a sponsor; they just used our name). In that meeting, advisors, some of whom pushed for the Interactive Gambling Act in 2008, described the illegal gambling activity going on in the country and its affect on the nation.

This is yet another example showing that the government can’t ever effectively deprive the people of something they want. If they want to gamble, they will find a way to do so. That is why the South African government passed the Interactive Gambling Act two years ago. However, because they have yet to license any online casinos, the black market has jumped in and supplied the goods demanded by the people. Now the government has two problems, because they still need to get around to approving and adequately taxing and regulating the online gambling in the country, but now they also have competition from illegal sites.

And here is example number one billion of why governments are stupid, ineffective creatures that do more harm than good. The state of Idaho actually has a law that makes using common sense illegal.

Yes, you read that correctly. Right now it is a misdemeanor for prosecutors or police officers to fail to act on a gambling “crime” that they know is in progress. Sure, we want the law to be enforced, but I have never heard of them being held accountable for not doing so before. This whole issue came up when the police raided a senior center and made arrests because a $20 poker game was being played. The police acted on what common sense says to ignore because failing to do so would be against the law, and they took an oath to uphold that law.

People should never knowingly break the law, but it is necessary for the police and prosecutors to use discretion in the enforcement of those laws. How would our society be if the police ticketed everyone who jaywalked, rode a bicycle on the wrong side of the road, or drove one mile-per-hour over the speed limit? Common sense says to focus on the bigger crimes and when it comes to the smaller ones, use your own judgment to determine whether or not it is worth your time.

Luckily, due in part to arrests like the senior center incident, lawmakers in Idaho have changed their minds. Yesterday, Governor Butch Otter (yes, that’s his name) signed a bill into law that allows law enforcement agencies to use their discretion in such cases. The law will go into effect on July 1. From that time on, the police will not be committing a crime if they decide not to haul grandma into jail for betting $5 on a square in the office Super Bowl pool.

The original law came into existence because once upon a time there was rampant illegal gambling going on in Idaho and the authorities were ignoring it. However, time and again we have seen that increasingly restrictive and specific laws usually end up doing away with common sense. In fact, if we just followed common sense, there wouldn’t be need for very many laws at all. After all, do we need a law saying you can’t steal someone else’s property? Obviously that’s bad!

But I digress. The new law is a victory for anyone who favors common sense over Draconian rule. Sense, of course, isn’t all that common, especially in government, so it’s nice to see it prevail on these rare occasions. Now they just need to consider whether or not it’s common sense to let people gamble with their own money.

Gambling law in Alabama may soon change. The state has traditionally been against gambling, but recent events have some people, the residents as well as politicians, reconsidering their position. Electronic bingo machines, which are currently illegal, have sprung up across the state, but so far nothing has been done about it. Governor Robert Riley was frustrated with the fact that the city police and attorney general seemed to look the other way. In response, he formed a Task Force on Illegal Gambling last year.

One of the first actions of the task force was to raid three establishments believed to be housing illegal gambling, which include Country Crossing, VictoryLand and the White Hall Entertainment Center. However, since they did not have a warrant, a judge ordered that the raid be halted. VictoryLand then filed a restraining order. Since then, a warrant has been issued to search the establishments and in response, the businesses have closed indefinitely to avoid being raided.

And that’s where things get tricky. If the businesses are indeed running illegal gambling operations, Riley is well within his rights by going after them, though many in the gambling community see him as an evil anti-gambling activist. The attempted raids and subsequent closings, however, have stirred up controversy in the state and now it seems that the people don’t even agree with the gambling ban anymore.

Once a strong anti-gambling voice, the people of Alabama have seen their state, like the rest of the country, mired in a bad recession. Jobs are scarce and with those businesses shut down, the economy is hurting even more and countless workers are wondering if they still have jobs. As a result, a recent poll by the Christian Coalition shows that 2/3 of the people of Alabama are opposed to Riley’s gambling raids and a poll by the Public Affairs Research Council of Alabama found that 72% of the people are in favor of regulated gambling in the state and only 25% want gambling outlawed.

In response, Riley’s popularity in the state is falling and state Representative Marcel Black introduced a bill that would allow the voters to decide whether or not to legalize gambling. At this time, shutting down illegal gambling is perfectly constitutional, but doing so could hurt Riley. With thousands of jobs at stake, no one wants to be the guy who made the unemployment situation in Alabama even worse. For that reason, it may be best to let the people vote and see what they decide. In the meantime, do nothing. It may turn Riley’s stomach to turn a blind eye to illegal activity, no matter how harmless, but it may be what’s best for the state, his reputation and that of his party.