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Greedy US politicians cite loss of tax revenue in online gambling assault
July 12th, 2006

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The U.S. House of Representatives on Tuesday passed legislation that would ban most forms of Internet gambling and require banks to develop systems to block their customer’s transactions to gambling websites.

By a 317-93 vote, the House approved the Internet Gambling Prohibition and Enforcement Act, sponsored by Representatives Bob Goodlatte, a Virginia Republican, and Jim Leach, an Iowa Republican. The bill amends the 1961 Wire Act, which prohibits gambling using telephone wires, to include Internet gambling as a prohibited activity.

The bill, opposed by a new group called the Poker Players Alliance, would increase criminal penalties for gambling businesses settling Internet wagers with credit cards, checks or fund transfers, and it would require financial institutions to create systems to block payments to gambling sites.

The bill is an attempt to stop U.S. gamblers from spending “over $6 billion a year to illegal, untaxed sites,” Goodlatte said on the House floor. He called Internet gambling a “cash cow” for offshore gambling businesses.

The Poker Players Alliance has criticized the bill for targeting the popular online game. In addition, the bill would “deputize” banks to look into the financial transactions of their customers, the group has said. In addition, the bill does not ban existing online gambling industries such as horse racing and state lotteries, the group said.

The bill, which would have to pass through the Senate before becoming law, allows states to continue to regulate gambling within their borders.

The Family Research Council, a conservative religious organization, applauded the House for passing the bill. The bill provides “real protection to American families from destructive and unlawful” Internet gambling, Tom McClusky, the group’s vice president for government affairs, said in a statement.

Grant Gross

12:35 PM Mark Hiratsuka • Permalink
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