The House Judiciary Committee approved legislation to toughen U.S. laws
against Internet gambling, clearing the way for consideration by the
full House of Representatives.
The committee voted 25-11 to approve the Internet Gambling
Prohibition Act sponsored by Representative Bob Goodlatte, a Virginia
Republican, and prepared to support a second measure, the Unlawful
Internet Gambling Enforcement Act, sponsored by Jim Leach, an Iowa
Republican.
``I oppose gambling because I think it causes many, many problems
in our society,'' Goodlatte said at today's committee meeting.
The Bush administration Justice Department supports the proposed
legislation. Online gambling's legal status in the U.S. is unclear
under current law. The Justice Department interprets a 1961 law against
using telephone lines to place interstate bets as prohibiting online
gambling. Goodlatte said his bill would make that explicit.
Gambling on the Internet is a $12 billion-a-year business that is
growing rapidly offshore. Internet-based casinos such as PartyGaming
Plc and 888 Holdings Plc, operating in locations such as Gibraltar and
Antigua, are raking in billions of dollars from U.S. gamblers.
The Goodlatte measure would force U.S. financial institutions to
cooperate with federal law enforcement authorities in shutting down
illegal gambling sites based outside the U.S. The measure exempts horse
racing, fantasy sports betting and state lotteries in the U.S.
Leach's measure would make it unlawful for credit-card companies to collect payments for transactions with online-gaming sites.
Senate Battle
The House legislation may face an uphill battle in the Senate. Some
states, including Nevada, are seeking to legalize, regulate and tax
online gambling, the fastest-growing segment of the industry.
Senator Jon Kyl, an Arizona Republican who has proposed a measure
seeking to block financial transactions, said he wants to press for
approval. ``I am going to wait and see how the House deals with it,''
Kyl said yesterday.
Frank Fahrenkopf, president of the American Gaming Association,
said through a spokeswoman that his group, the Washington lobbying arm
for Las Vegas-based casinos, is ``neutral'' on the Goodlatte and Leach
measures.
The association is asking Congress to fund a federal commission
that would study whether online gambling can be regulated and taxed in
the U.S. That may eventually let major casino operators such as MGM
Mirage and Harrah's Entertainment Inc. to enter the online business.
Legalized gambling has grown dramatically in the U.S. over the past
two decades. In 2005, commercial and Indian tribe casinos and
horse-betting operations took in more than $52 billion in gross revenue
nationwide, according to a Pew Research Center study citing industry
estimates. Lotteries in 41 states sold $52 billion in tickets.
source : Bloomberg news.
