Wednesday, May 07, 2003
Copyright © Las Vegas Review-Journal

INTERNET GAMBLING: E-gaming ban bill advances

Proposal outlaws methods of paying online wagers

WASHINGTON -- By voice vote, a House subcommittee on Tuesday passed a bill to prohibit Internet gambling by outlawing payment of online wagers via credit cards, checks or electronic fund transfers.

The vote by the House Judiciary subcommittee on crime, terrorism and homeland security advances the bill by Rep. Jim Leach, R-Iowa, to the full committee where a more extensive debate is expected.

Rep. Bob Goodlatte, R-Va., who offered a tougher alternative to Leach's bill two years ago, urged the subcommittee to support the Iowan's bill.

"(The Leach bill) is intended to make it crystal clear that operating a gambling business on the Internet is illegal," said Goodlatte, who replaced an ailing Rep. Howard Coble, R-N.C., as the chairman of Tuesday's hearing.

Leach's bill passed the House Financial Services Committee last month by voice vote. A similar bill by Sen. Jon Kyl, R-Ariz., is awaiting a vote by the Senate Banking Committee.

Goodlatte noted there are more than 1,800 Internet gambling Web sites, which are projected to generate $4.2 billion in wagers by the end of this year.

The wagers are up from $445 million just six years ago and are expected to reach $10 billion in the near future, Goodlatte said.

The subcommittee, by voice vote, rejected an amendment by Rep. Sheila Jackson Lee, D-Texas, that would have deleted the Leach provision outlawing the use of credit cards, checks or electronic fund transfers to pay for Internet gambling.

"I am not here to cry on my pillow on behalf of banks," Lee said.

But she said there is no evidence the Leach bill would be effective in prohibiting Internet gambling, and voiced concern that the subcommittee was moving precipitously.

Lee asked Goodlatte if the subcommittee also planned to vote on a bill by Rep. John Conyers, D-Mich., that would establish a federal commission to study whether Internet gambling could be effectively regulated.

Goodlatte said the only measure before the subcommittee was the Leach bill.

Rep. Bobby Scott, D-Va., said he plans to offer the Conyers' bill as an amendment to the Leach bill during the debate by the full Judiciary Committee.

Scott said the Leach bill actually would increase Internet gambling because it would permit states to license Internet gambling within their borders.

Goodlatte argued a state would not be allowed to operate wagering Web sites unless wagers from other states could be blocked.

Scott offered and then withdrew an amendment calling for the prosecution of gamblers who place wagers with Internet Web sites. Scott said he would propose the amendment again during debate by the full judiciary committee.

Rep. Maxine Waters, D-Calif., warned the subcommittee that it should not determine activity which should be prohibited on the Internet.

"I don't want to spend my time on this committee choosing which bad products should be banned (on the Internet), whether it be smoking, alcohol or gambling," Waters said.