Online gambling threatened by U.S. legislators

Jul 7, 2006, 11:32 am (35 comments)

Online Gambling

Editor's Note:  Lottery Post is firmly against any attempts to limit the peoples' right to do as they wish on the Internet, including online gaming.  Although anti-gambling lobbyists and legislators continue to sound the same alarm about "gambling by minors" and "gambling addiction", we believe both of those arguments apply to such a small fraction of people that the rights of the vast majority of the Internet population are being taken away needlessly and carelessly.  People have a right to do what they please with their money.  We present this story to alert people that their rights are about to be truncated by a small, vocal minority, and they should contact their representatives and make it clear that any limitations on their online rights is unacceptable.

The full U.S. House of Representatives is expected to debate next week legislation that would attempt to ban Internet gambling, a $12 billion-a-year industry that gets half its revenue from American gamblers, two Republican lawmakers said on Thursday.

The legislation to be debated blends two versions of bills that have been offered by Rep. Bob Goodlatte of Virginia and Rep. Jim Leach of Iowa, the two said in a statement.

Leach's bill has been approved by both the House Financial Services Committee and the House Judiciary Committee. It has broad support among conservative and religious activist groups, who want to keep gambling out of easy reach of minors.

The anti-gambling bill is expected to be debated by the full House as early as Wednesday, a legislative aide said.

However, it remains unclear whether the Senate will pass similar legislation as Congress scrambles to finish its work before the November general elections. Arizona Republican Sen. Jon Kyl has introduced a bill similar to Leach's House bill but it has languished in the Senate.

Investors in some British-based gaming companies such as Party Gaming Plc and 888 Holdings have closely monitored U.S. legislation.

Although the U.S. Justice Department says a 1961 law that forbids interstate telephone betting also applies to the Internet, the House lawmakers say their legislation would clarify that point for prosecutors. It would also prohibit gambling businesses from settling Internet wagers with credit cards, checks or fund transfers.

"Gambling on the Internet has become an extremely lucrative business," Goodlatte said. "These offshore, fly-by-night Internet gambling operators are unlicensed, untaxed and unregulated and are sucking billions of dollars out of the United States."  Editor's Note: It is painful to reproduce Goodlatte's completely false statements here, but I will, for the sake of the story.  He is implying that all offshore gaming is unlicensed and fly-by-night, which is an outright lie.  Anyone who cared about the truth would discover that with some simple research.

An estimated 2,300 gambling sites now exist on the Internet, the lawmakers said.

Reuters

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Tenaj's avatarTenaj

Yes NodThank you Todd for the information and the editor's notes.  Good read.

Fibonacci's avatarFibonacci

According to the bits I read, the targets of the bill are those foreign-based sites --to cut down the risk of Americans getting scammed and to protect minors from online gambling. I agree these arguments sound flimsy...

wass2000

Come on, this got nothing to do with scams or minority protection. This is all about protecting the interests of the Casinos in Las Vegas, Atlantic city and ........ What really is bothring them is the fact that millions are generated on the internet without been able to get a piece of the action. "" untaxed and unregulated and are sucking billions of dollars out of the United States "". By the way a lot of those online casinos are owned by americans.

Bradly_60's avatarBradly_60

If all gambling sites were fraudulent then I would say this would be something we need to look at.  But come on.  So many sites out there are very legitamate and when they start infringing on our rights like this...we know American is going down the wrong path.

And how much more can they do to stop minors from gambling.  Most sites require credit cards, things that minors can't have and also they usually make you submit some sort of valid identification.  You can't do more to stop minor from gambling then that.

Gambling is a big fad right now.  (and it is a fad) in 10 to 20 years we will not see casinos everywhere because there will be no need for them.

Brad

orangeman

The real issue is the fact that the online casinos compete with the state lotteries and infringe on their monopolies.  I personally feel that the bill would not be enforcable unless the government finds a way to block sites.  That is what they do in Red China, so I suppose it is possible.  One more freedom down the drain, I guess.

Orangeman                          Unhappy

LOTTOMIKE's avatarLOTTOMIKE

That is what they do in Red China, so I suppose it is possible.


good point you made there orangeman

the day the untied states does this it will be a sad day and a strike against our freedoms and what we stand for.

orangeman

If they block gambling sites, they should go all the way and block porn sites, too.  This probably won't happen because the gambling and pron sites will bribe those blood-sucking pigs in Washington and it will all go away.

Orangeman                          Patriot

LOTTOMIKE's avatarLOTTOMIKE

If they block gambling sites, they should go all the way and block porn sites, too.

i agree.and i also think porn is a lot worse than gambling so they need
focus on if little ricky is doing dirty things instead of worring about me betting a boxed hit in idaho.

LOTTOMIKE's avatarLOTTOMIKE

politicians are really legit hustlers in my book.they are just as wormy as the guy spraying my wind shield on the corner for 2 bucks.the hustle is different but its all the same........

weshar75's avatarweshar75

The bottom lines is that internet gambling is a billion dollar industry and congress needs every tax dollar they can out of gambling americans to pay for services.  In it's very essence it is a form of control.  Just like when americans find new ways through technology or advances to save money.  You will find a politician introducing bills and legislation to tax that new form.  It is just a simple way to control or enslave the masses.-weshar75   

konane's avatarkonane

Pass the "Fair Tax" which eliminated all Federal payroll taxes where you bring home all the money you make less state taxes if applicable. 

Make internet gambling legal and tack a 23% federal tax on the amount spent on your bets online (remember you won't be taxed on what you win) and be done with the whole matter. 

The government gets paid, internet gamblers get to do as they choose legally.

Win/win for all.

orangeman

 

This is how we nip this foolishness in the bud.  Find a legislator willing to attach a rider to the bill blocking porn sites along with the gambling sites.  This would turn the matter into a freedom of speech issue and would considerably muddy the waters.  No one would touch it either way because no matter how they vote, someone would be upset and our solons hate to alienate any type of voter. By doing it this way, the ACLU would get involved along with the PTA and parents groups of all stripes.  The ensuing battle with drag out the issue for years to the point where no one would touch it again in this decade.  Who knows, we could include any religious websites, too, citing separation of church and state.  The waters wouldn't just get muddy.  They would turn solid enough to walk on.  This is classic Sun Tzu or judo.  Use the strength of the enemy against him.

Orangeman                                                  Argue

hsvscubaski

Pass the "Fair Tax" which eliminated all Federal payroll taxes where you bring home all the money you make less state taxes if applicable. 

Make internet gambling legal and tack a 23% federal tax on the amount spent on your bets online (remember you won't be taxed on what you win) and be done with the whole matter. 

The government gets paid, internet gamblers get to do as they choose legally.

Win/win for all.

Amen to the Fair Tax!!!!! For those of you that don't know about it there is a "Fair Tax" book writen by Congressman Linder and talk show host Neil Boortz.  Good read  amkes a lot of sense but the olny way it will go any where is a ground swell of popular support.  It gets rid of the IRS and takes the lobboyist influnence ( and the big bucks they make) out of polotics

hsvscubaski

 

This is how we nip this foolishness in the bud.  Find a legislator willing to attach a rider to the bill blocking porn sites along with the gambling sites.  This would turn the matter into a freedom of speech issue and would considerably muddy the waters.  No one would touch it either way because no matter how they vote, someone would be upset and our solons hate to alienate any type of voter. By doing it this way, the ACLU would get involved along with the PTA and parents groups of all stripes.  The ensuing battle with drag out the issue for years to the point where no one would touch it again in this decade.  Who knows, we could include any religious websites, too, citing separation of church and state.  The waters wouldn't just get muddy.  They would turn solid enough to walk on.  This is classic Sun Tzu or judo.  Use the strength of the enemy against him.

Orangeman                                                  Argue

Come on Orangeman.  There is nothing in the Constitution that says we have "separation of church and state".  Read the Contitution.  If a State wanted to mandate that the official state religion was Budist they could.  All theContitution says is " the Congress shall pass no law...".  Seperation is a judicial stretch that has been blown out of proportion

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