Congress Attacks Web Gambling

The House Judiciary Committee voted 18-12 to pass the “Combatting Illegal Gambling Reform and Modernization Act” in June. HR 3215 would prohibit gambling businesses from operating Web sites if they are located in a state or nation other than that of the bettor.

Gambling Web sites would be required to verify that the person placing the bets is not a minor and resides in the same state as their business, according to the legislation.

Gambling enterprises located on Native-American tribal lands that are licensed for gambling under the Indian Gaming Regulatory Act would be exempt.

Rep. Robert Goodlatte (R-Va.) introduced the bill last year, which updates the 40-year-old Interstate Wire Act to encompass online lotteries and other games of chance.

“Illegal gambling on the Internet has expanded into a lucrative business that drains billions of dollars out of the U.S. economy every year and costs tens of thousands of jobs,” said Goodlatte in a press release. “Illegal gambling sites evade existing gambling laws by operating off shore, providing a nearly undetectable harbor for criminal enterprises.”

The Federal Communications Commission (FCC) would be charged with enforcing the law. Violators could be fined and or imprisoned for up to five years. The FCC could obtain a court order against banks and credit-card companies to force them to stop working with illegal gambling enterprises that accept bets across state or national lines, the legislation says.

Web sites could also be ordered to stop working with illegal gambling enterprises and remove banner advertisements of illegal online gambling sites.

As of July 10 the bill had 155 cosponsors in the House, which is short of the 218 votes needed to pass the House.

The text and status of HR 3215 can be accessed on the Web at http://thomas.loc.gov by searching on the bill number, HR 3215.