Legislators wager on Internet gambling bill
by Lisa Aland, Outpost staff
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An Internet user gambles online. Photo illustration by Brian Vance |
Concern over the increase in Internet gambling has encouraged U.S. Sens. Richard Bryan and John Kyl to introduce federal legislation to outlaw online gambling.
"The primary goal of the bill is to prevent Internet gambling in America," Senator Bryan said. "With so many families now hooked up to the Internet, we don't want to see America's living rooms turned into betting parlors."
Recent studies, such as the National Gambling Impact Study released in 1999, have started a chain reaction to introduce gambling-related bills on Capitol Hill. A federal study released by the General Accounting Office in April questions whether the economic benefits of gambling outweigh the social costs. Gambling in casinos creates jobs and generates revenue from the taxes casinos pay but Bryan argues that Internet gambling serves no interest but that of the site operators.
"Owners of the offshore fly-by-night Internet gambling operations are already making millions in profits," Senator Bryan said. "With more than 300 gambling web sites easily accessible to children, it is time that we nip this growing problem in the bud."
The Internet Gaming Prohibition Act of 1999 (IGPA) prohibits any person or gaming business from using the Internet to place, receive or make a bet or wager. After going through several changes, the bill was passed in the Senate on November 19, 1999 and now sits in the House awaiting passage.
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While the bill does not specify punishing users or Internet Service Providers (ISPs) who have gambling sites, it does prevent individuals from having them. Service providers will be notified of sites on their service and will then be accountable.
"They don't police the site, but they are responsible for getting them off their service," Senator Bryan said.
When the IGPA was first introduced to the Senate in March 1997, it included a provision to fine "casual bettors" up to $500 or the amount of the bet. The provision was deleted in the new version of the bill. The bill still carries penalties for ISPs who fail to take gambling sites off their service after being notified. Gambling site operators could be fined up to $10,000 or two years in prison and the bill gives local authorities the right to seek injunctions against service providers. The IGPA would be an addition to the outdated Wire Act of 1961, which makes it illegal for providers to offer or take bets from gamblers over phone lines or through other wired devices unless otherwise authorized by a particular state. Bryan hopes the bill will assure individual states the power to regulate gambling within their jurisdiction.
"Without the passage of this legislation, individual states would lose the ability to regulate gambling within their own borders," Senator Bryan said. "As the growth of the Internet continues to explode, it is the right time for this legislation before we witness that same kind of growth in Internet gambling from people's homes."
Enforcement of the bill has been a major issue in Congress. Notifying ISPs of the several hundred sites on the Internet is a tedious task and lawmakers question where the responsibility should lie. Another roadblock for enforcement concerns the physical location of the site. Many Internet gambling sites are operated from offshore locations that fall outside of U.S. federal jurisdiction. Section five of the bill requires the Attorney General to submit a report to Congress that will provide answers to these questions of enforcement.
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"The report shall include an analysis of the problems, if any, associated with enforcing [the bill], recommendations for the best use of the resources of the Department of Justice to enforce that section and an estimate of the amount of activity and money being used to gamble on the Internet," according to the IGPA.
Concern over enforcing the bill has created opposition. Groups including the ACLU have already spoken out against the legality of prohibiting gambling sites. Some are concerned that the IGPA is only the beginning of government regulation of the Internet. The Interactive Gaming Council (IGC) says the bill lacks the power to be enforceable.
"It's Swiss cheese, it has so many holes," Sue Schneider, chairwoman of the board of IGC, said.
Earlier this month, the Justice Department said Congress should look to update the 40-year-old Wire Act instead of passing new laws.
"The fact that gambling, an age-old crime, has gone high-tech and can now be done through the Internet is no reason to pass new laws that specifically target the Internet for regulation," Deputy Assistant Attorney General Kevin DiGregory said.
Since many online gamblers use credit cards, one possible way to enforce the bill could be teaming up with credit card companies to eliminate casino debts.
"We haven't done that yet," Senator Bryan said. "If the House writes essentially the same legislation, that may be an avenue to explore."
Bryan concluded the phone interview by saying:
"One thing is abundantly clear. With no state or federal regulation of these Internet gaming sites, Internet gambling is simply a bad bet."
Posted May 1, 2000
Copyright 2000 Nevada Outpost
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