Technology12.07.2006

US House limits Internet gambling

The bill, backed by Republican leaders, passed 317-93. It still must clear the US Senate to be sent to the White House to be signed into law.

The legislation is aimed at clearing up any ambiguity about whether Internet gambling is illegal. US officials argue that any bets made in the United States, even at offshore websites, would already be against the law.

But the new bill would explicitly ban the use of checks, wire transfers or credit cards for wagers, imposing a five-year prison term for violators.

Some lawmakers said offshore gambling websites drain money from the United States to questionable and possibly criminal  enterprises.

"We must be wary of illegal gambling sites that offer fronts to criminals for money laundering, drug trafficking and terrorist  financing," said House Speaker Dennis Hastert.

Hastert said the law "seeks to protect our children from gambling sites at home, keep our hard-earned money in the bank, and  put the criminals that seek to take advantage of our family earnings in jail."

"This bill is an important part of the American Values Agenda and I am pleased that House Republicans continue to move substantive legislation upholding strong values that puts the interests of our families and children first," added House Majority Leader John  Boehner.

Representative Bob Goodlatte, who has been pressing for such legislation, said the bill could curb the booming industry of  offshore websites accepting bets and wagers from persons in the United States. "Because these businesses are located offshore, they usually cannot be reached through state or federal law enforcement,"  Goodlatte said.

"Easy access to Internet gambling websites and lack of law enforcement give the US public a misimpression that Internet  gambling is not illegal."

Some lawmakers and gaming advocates argued that US authorities would be better off trying to regulate Internet gambling. One study indicated US residents went online to bet more than four billion dollars at offshore-based sites in 2005.

The Poker Players Alliance, an association of advocates for online gaming, expressed disappointment over the measure. "The United States should follow the lead of the United Kingdom by regulating and taxing online poker, not banning it," said Michael  Bolcerek, president of the group. "An economic analysis just released by our organization shows that US regulation of online poker has the potential to raise more than 3.3 billion dollars in annual revenue for the federal government."

Holly Thomsen at the American Gaming Association, which  represents US casino operators, said the group was "neutral" on the bill but would prefer a study on ways to regulate online gaming. "We think Congress should take a look and find out if technology exists to properly regulate and tax online gambling," she said.

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