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The Unlawful Internet
Gambling Enforcement Act
would essentially block
Internet access to gambling
sites by working with the
service providers. Supporters
of the measure argue that
Internet betting can be
addictive and can lead people
to lose their savings.
The Unlawful Internet Gambling
Enforcement Act

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If the House gets its way on Internet
gambling,
it could be...

GAME OVER

Unlawful Internet Gambling Enforcement Act

The US House of Representatives has passed legislation that will prevent
online gamblers from using their credit cards and to block access to
gambling sites. This law is meant to clarify past legislation that all online
gambling is illegal.
I find it just amazing that
supporters of the bill actually
think that the public
would believe that the
legislation is to curb the losses
that may occur due to
minors gambling online. Under
the current legislation, it would
still be alright for the public to
gamble on horses and
lotteries, which are both run
by the state. The truth is that
the states have been trying for
many years to try to
collect tax revenues from
online commerce with varying
degrees of success.
The US House of Representatives has passed legislation that will prevent
online gamblers from using their credit cards and to block access to gambling
sites. This law is meant to clarify past legislation that all online gambling is
illegal.
The House voted and passed the bill. The result, 317 to 93 for the bill, would
essentially block Internet access to gambling sites by working with the
service providers. Supporters of the measure argue that Internet betting can
be addictive and can lead people to lose their savings. Representative Jim
Leach (R-Iowa) said the problem is particularly acute for young people who
are frequently on the Internet. "Never before has it been so easy to lose so
much money so quickly at such a young age."
Reps. Bob Goodlatte (R-Va.) and Jim Leach sponsored the bill. They
successfully beat back an amendment to strip out exemptions for the horse
and state lotteries. This will essentially make it illegal to gamble online unless
the state is involved in the transaction.
I find it just amazing that supporters of the bill actually think that the public
would believe that the legislation is to curb the losses that may occur due to
minors gambling online. Under the current legislation, it would still be alright
for the public to gamble on horses and lotteries, which are both run by the
state. The truth is that the states have been trying for many years to try to
collect tax revenues from online commerce with varying degrees of success.
In New York state, there is a line on the NY State Individual Tax Return where
you are to indicate the amount of "online" purchases that were made for the
year, so they can charge you tax on these purchases that you did not pay at
the time of sale.
The states know that they can not touch the revenues collected by online
gambling sites simply because they are located outside of their jurisdiction.
The only option is for them to make it illegal to participate in such activities.  
Industry analysts predict that revenue from global gambling on the Internet
will approach $24.5 billion by 2010. The states are well aware of the vast
sums of tax revenues that they are losing out on.
There is not much support for the legislation in the Senate, so hopefully the
bill dies a quick death. Republican leaders have not considered the measure
a high priority.
Rep. Shelley Berkley (D-Nev.) pushed for removal of the exemptions. She said
it was unfair to allow lotteries and Internet betting on horse racing to flourish
while cracking down on casino and card games like poker. Supporters of
Internet gambling agreed. They call it a prohibition. It is really congress
picking winners and losers," said Michael Bolcerek, president of the Poker
Players Alliance, a San Francisco based group that opposes the bill. It seems
to me that the winners would be the state coffers, and the losers would be
the millions of poker fans in the US who like to play online poker. I would not
be surprised to see the states offering their own poker rooms where you
would be able to "legally" gamble online, as they collect the rake from each
hand.

I have viewed this current bill, and previous bills dealing with online
gambling. You can view parts of the bill by following the Library of Congress
links below.

Unlawful Internet Gambling Enforcement Act of 2006 -
[H.R.4411.RH]

Unlawful Internet Gambling Enforcement Act of 2005 - [H.R.4411.IH]

Internet Gambling Prohibition Act - [H.R.4777.IH]

Restoring Trust in Government Act - [H.R.4696.IH]

Internet Gambling Prohibition and Enforcement Act - [H.R.4411.EH]
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