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Jul. 08, 2006
Copyright © Las Vegas Review-Journal


EDITORIAL: Internet gambling

Why must everything be taxed, regulated or banned outright?

You don't need a calendar to know elections are around the corner. Just watch House Republicans -- the purported advocates of limited government -- advance constituent-pleasing legislation that expands the regulatory state and criminalizes victimless behavior.

Proposed constitutional amendments to ban gay marriage and flag desecration were big hits with loyal conservatives. And now, to further please the "family values" bunch, House Republicans are set to pass legislation that would make it almost impossible -- and illegal -- for Americans to place bets with offshore Internet gambling sites.

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A bill sponsored by Rep. James Leach, R-Iowa, which would prohibit credit card companies from making transactions with virtual casinos, is expected to pass the full House next week. The bill could be combined with separate legislation from Rep. Bob Goodlatte, R-Va., which explicitly bans gambling over the Internet.

Internet gambling is a growing, $12 billion to $15 billion per year industry with millions of U.S. customers. Like every other form of Internet commerce, virtual casinos and sports books draw their popularity from convenience. Gamblers don't have to leave their homes and trek to a casino.

But those who oppose gambling on moral or religious grounds and fight the construction of casinos in their communities can't stand the fact that gambling can enter their neighborhoods through personal computers. For these people, the solution is to introduce a regulatory presence on the Internet -- how many bureaucrats would be needed to enforce such a law? -- and authorize even more federal snooping on financial transactions.

Rep. Jon Porter, R-Nev., has sponsored alternative legislation to authorize an 18-month federal study of Internet gambling. Among the bill's 47 co-sponsors are Rep. Shelley Berkley, D-Nev., and Rep. Jim Gibbons, R-Nev. Rep. Porter's bill, which is supported by the American Gaming Association, could lead to support for regulated, taxed virtual casinos based in Nevada. That legislation is now all but dead.

But why does everything have to be taxed, regulated or banned outright? Why can't Congress simply keep its mitts off the Internet and let Americans choose whether and how to risk their money in games of chance?

If, in fact, a bill to outlaw Internet wagering clears the House, the Senate should let it die of neglect.

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