New Legislation Threatens Online Gambling

On the 15th of February US Congressman from Virginia Bob Goodlatte reintroduced HR 4777, the “Internet Gambling Prohibition Act.” Goodlatte hopes to pass the bill, which will amend the earlier Title 18 of the United States Code containing the Federal Wire Act passed in 1961. The Wire Act outlawed telephone betting by rendering it illegal to place bets by “wire transmission.”

The explosion of Internet poker rooms and sports books lately was possible only consequently of the ambiguity surrounding the meaning of “wire” ;.While opponents of Internet gambling insisted that this is included cable, satellite, and cellular technology, no court would uphold a conviction based on that definition. Goodlatte hopes to amend that by expanding the Code to add all forms of electronic transmission, along with to add all kinds of bets.

Earlier attempts to pass the legislation were thwarted vegus168 by the lobbying efforts of Jack Abramoff, based on Gooodlatte’s office. But Abramoff’s recent guilty pleas to fraud, tax evasion and conspiracy to bribe public officials have added political capital to Goodlatte’s campaign.

In accordance with Goodlatte “Illegal online gambling doesn’t just hurt gamblers and their own families, it hurts the economy by draining dollars from the United States and serve as a vehicle for the money laundering,” stated Goodlatte. “It’s time and energy to shine a brilliant light on these illegal sites and bring an instant end to illegal gambling on the Internet.”

“But outlawing online gambling won’t stop the activity.” says Will Catlett of Sportsbettingscams.org, an industry watchdog site. “It is only going to drive it underground. If online gambling is outlawed then a government will miss its power to legislate online gambling policy and police it’s dangers, not forgetting its power to tax the transactions. Goodlatte’s bill can do exactly the opposite of what it wants to do.”

By July 2005, based on Forrester polls, there were over 300,000 gambling websites entertaining over 7,000,000 online gamblers. While the bulk of traffic to these websites initially originated from the United States, that number has become around 40% as players are attracted from all around the world. If the bill is passed, the industry will shrink dramatically, and shift its focus to other nations. Meanwhile, online gamblers in the United States will soon be out of luck. “It’s amazing if you ask me that bill might just pass quietly with little or no resistance.” says Catlett. “Anyone who enjoys gambling online should really write their State Representative to let them know why this bill shouldn’t go through.”