Welcome Guest
Log In | Register )
You last visited December 8, 2016, 4:55 pm
All times shown are
Eastern Time (GMT-5:00)

Once again, U.S. tries to shut down Internet gambling

Online GamblingOnline Gambling: Once again, U.S. tries to shut down Internet gambling

Legislation focused on cracking down on the thriving business of online gambling was introduced in Congress this week to tighten existing laws that outlaw the practice in the U.S.

The Internet Gambling Prohibition Act, sponsored by Reps. Bob Goodlatte (R-VA) and Rick Boucher (D-VA), would update the U.S. Wire Act, which prohibits gambling over telephone wires, to cover use of the Internet to operate a gambling business.

The bill not only forbids a gambling business from accepting payments made by credit cards and electronic transfers, but also includes an enforcement mechanism to address gambling operations, located offshore, that use bank accounts in the U.S.

"For too long our children have been placed in harm's way as online gambling has been permitted to flourish into a $12 billion industry," Goodlatte said in a statement. "The Internet Gambling Prohibition Act brings the current ban against interstate gambling up to speed with the development of new technology."

Matching New Tech

The bill would allow federal, state, local, and tribal law-enforcement officials to seek help from Internet service providers to remove or disable access to Internet gambling sites that violate the act. In addition, the bill would boost the maximum prison term for a violation of the Wire Act to five years from two years.

Similar legislation has been introduced over the years, but has been thwarted consistently by notorious gambling lobbyist Jack Abramoff.

The U.S. Department of Justice has contended that companies offering online gaming to U.S. residents are in violation of existing federal laws, including the Wire Act, the Illegal Gaming Business Act, the Paraphernalia Act, and the Travel Act.

Despite the claims made by the Justice Department that Internet gaming is unlawful in the U.S., the lack of clear legislation regarding the practice has meant that there have been few legal cases brought against gambling operators.

In the MasterCard International case in 2002, a federal appellate court concluded that the Wire Act does not prohibit nonsports Internet gambling.

Online gaming company PartyGaming, which operates PartyPoker.com and StarluckCasino.com, has said that state and locals laws that prohibit or restrict online gaming and related services are a violation of the "dormant commerce clause" of the U.S. Constitution, which provides that state and local regulation of interstate activities is an impermissible restriction on interstate commerce.

The BBC has reported that the new legislation could run afoul of a World Trade Organization ruling last August that the U.S. cannot block offshore online gambling sites.

Place Your Bets

It is no secret that online wagering is a multibillion-dollar business, and that most of the illegal activity originates in the U.S.  PartyGaming, which reported revenues in excess of $600 million in 2004, said 88 percent of that money came from the pockets of U.S. customers.

"Gambling is illegal in the U.S., and there are many different state laws regulating it, but all of the online gaming businesses are located overseas, where the government has no jurisdiction," said Yankee Group analyst Michael Goodman. "How will this new law be enforced? Will the government track the online activities of the millions of people involved in online gambling?"

Still, Rep. Goodlatte said that illegal online gambling adversely impacts the economy by draining dollars from the United States and serves as a vehicle for money laundering.

The Internet Gambling Prohibition Act has been referred to the House Judiciary Committee.

Antigua renews protests

The Caribbean state of Antigua and Barbuda, which in 2003 filed a complaint against the United States with the World Trade Organization over Internet gambling, renewed its protest of U.S. gambling laws on Friday after the act was re-introduced.

In a letter to U.S. Trade Representative Bob Portman, an Antigua official said that he is concerned about efforts to outlaw the Internet gambling industry and complained the U.S. has made no attempt to comply with a WTO appellate ruling last year that the U.S. end discrimination against foreign online betting companies, Reuters reports. The WTO issued an April 3, 2006, deadline for the U.S. to comply with its ruling.

The Internet Gambling Prohibition Act carries an exemption for horse racing. The WTO ruling came in response to Antigua's complaint regarding an amendment to the Interstate Horseracing Act of 1978, which allows wagering on horse racing via phone or other electronic media. The law is limited to states where such wagering is allowed and excludes foreign operators. A WTO appeals panel ruled the U.S. has not shown its laws on horse racing are equally applied to domestic and foreign Internet wagering companies, which is contrary to global trade regulations.

"The U.S. is exploring a number of different avenues to clarify there is no discrimination-even outside of legislation, Neena Moorjani, a spokeswoman for Portman's office, told Reuters. "The issue is a very narrow one...the time period for compliance has not yet expired."

Antigua and Baruda wants to bolster its online gambling industry to counter declining tourism.

Newsfactor, wire reports

We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

44 comments. Last comment 11 years ago by Ms. Pat.
Page 1 of 3
LOTTOMIKE's avatar - cash money.jpg
Tennessee
United States
Member #7853
October 15, 2004
11338 Posts
Offline
Posted: February 20, 2006, 7:36 am - IP Logged

does anyone think this thing will come to pass?

i just opened an account with betslips.hopefully these moron lawmakers don't pass this stupid bill..........

    Zoozie's avatar - back
    South Fort Myers
    United States
    Member #26835
    November 23, 2005
    454 Posts
    Offline
    Posted: February 20, 2006, 7:40 am - IP Logged

    Nothing new here.  Same concept as you can not walk into a lottery retailer and use your credit card to purchase tickets... cash only.

    Will that stop me from playing online?  Heck no... I win more online that I could EVER in my life win playing here in Hoosier land.

    Zoozie  Dance

     

    "Whatever the mind can conceive and believe, it can achieve"
    Napoleon Hill

      Avatar
      Indiana
      United States
      Member #29196
      December 29, 2005
      280 Posts
      Offline
      Posted: February 20, 2006, 9:04 am - IP Logged

      Well I don't play on line but I think this could come to pass.  And one of the reasons I think so is not really mentioned here in this article.  The state lotteries have a vested interested in this.  From their perspective they are losing money on line bets.  They of course don't make any money from on line bets and they can't regulate or control on line bets.  If they can put an end to on line betting then the people who play will either have to stop playing or play in state.  If they play in state that means more money for the state lottery.

      Something like this is going on in Indiana right now with the campaign against so-called illegal lottery machines in taverns, VFW Halls and even football pools.  In fact it recently it came to light here in Northwest Indiana that the Excise Department was going around to various bars trying to determine if they had a Superball Pool.  If they were able to determine the bar had a football pool then they would shut down the pool and seize the money.

      State legislators in Indiana are concerned because they cannot regulate and therefore tax or otherwise from profit from these types of gambling activities and the Executive Director has said words to the effect that the lottery is "losing money" because of this stuff.  She feels that the money wagered in bars would be wagered on the Hoosier Lottery if these games were shut down.

      So...even though this legislation is at the federal level I think you can look for the states to support it and it may very well come to pass.

      Jim 


      Money frees you from doing things you dislike.  Since I dislike doing nearly everything, money is handy.  - Groucho Marx

        Todd's avatar - Cylon 2.gif
        Chief Bottle Washer
        New Jersey
        United States
        Member #1
        May 31, 2000
        23273 Posts
        Online
        Posted: February 20, 2006, 9:44 am - IP Logged

        Let's hope they are unsuccessful Jim, like they have been in the past.

         

        Check the State Lottery Report Card
        What grade did your lottery earn?

         

        Sign the Petition for True Lottery Drawings
        Help eliminate computerized drawings!

          Avatar
          Sparta, NJ
          United States
          Member #18331
          July 9, 2005
          1977 Posts
          Offline
          Posted: February 20, 2006, 10:04 am - IP Logged

          Always some do-gooder knowing what is best for you.  Will there ever be a day when some one can do what they want without be critized for it?  Guns are bad. Tobacco is bad.  Cellphones are bad.  Nuclear power is bad.  SUV's are bad.  Sex is bad. Gambling is bad.  Football teams insult indians.  They never quit!

          Please let me win the lottery Tuesday and let me get away from all these people who's life is based on interfering with some one elses life!

          Cheers

          |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

          I only trust myself - and that's a questionable choice

            Avatar
            Indiana
            United States
            Member #29196
            December 29, 2005
            280 Posts
            Offline
            Posted: February 20, 2006, 10:17 am - IP Logged

            @Chewie: 

            Preach on Brother Chewie!  Preach on!

            @Todd:

            I hope they are unsuccessful but once again the politicians realize (or at least they think) there is money to be made here and they will (as always) make a serious effort to snatch up every penny they can.  Some of the unscrouplous nitwits we put in office would dig up a corpse and tax the pennies on a dead man's eyes if they thought it would add more revenue to their coffers. 

            Closing down football pools! 

            Jim 


            Money frees you from doing things you dislike.  Since I dislike doing nearly everything, money is handy.  - Groucho Marx

              teacake58's avatar - Lottery-012.jpg
              AL
              United States
              Member #29698
              January 5, 2006
              1141 Posts
              Offline
              Posted: February 20, 2006, 10:20 am - IP Logged

              I really don't think we need a baby sitter why don't they just get a life of their own

                four4me's avatar - gate1
                MD
                United States
                Member #1701
                June 18, 2003
                8362 Posts
                Offline
                Posted: February 20, 2006, 10:26 am - IP Logged

                More like the politicians want to try and  stop it so they can take charge of it or be a part of it. That way they regulate it and profit from it just like they did in the old days when people played with the local bookies. One way or another the government will find a way to make money from anyone who makes money.

                  Avatar
                  Sparta, NJ
                  United States
                  Member #18331
                  July 9, 2005
                  1977 Posts
                  Offline
                  Posted: February 20, 2006, 10:32 am - IP Logged

                  @Chewie: 

                  Preach on Brother Chewie!  Preach on!

                  @Todd:

                  I hope they are unsuccessful but once again the politicians realize (or at least they think) there is money to be made here and they will (as always) make a serious effort to snatch up every penny they can.  Some of the unscrouplous nitwits we put in office would dig up a corpse and tax the pennies on a dead man's eyes if they thought it would add more revenue to their coffers. 

                  Closing down football pools! 

                  Jim 

                  Remember guys, it is election year.  The rats will be coming out of the wood work trying to convince their base they are the best thing since flavored Jello.  Democrats will be lying to their voting bases and trying to convice everyone they know best.  Republicans will be lying to their base and trying to convice everyone they know best.  Independants will be trying to find where their base is hidinig. 

                  No one wants to give up the lucrative position they have.  Just think, not only having the ability to vote your own pay raises, and expenses, but to be able to hide it under cover as an automatic pay raise no matter what happens to the average American.  The ability to write laws for everyone, then insert exceptions for yourself.  Wouldn't you be corrupt too?

                  Cheers

                  |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                  I only trust myself - and that's a questionable choice

                    mylollipop's avatar - Trek STLOGO6.png

                    United States
                    Member #24380
                    October 21, 2005
                    623 Posts
                    Offline
                    Posted: February 20, 2006, 10:53 am - IP Logged

                    @Chewie: 

                    Preach on Brother Chewie!  Preach on!

                    @Todd:

                    I hope they are unsuccessful but once again the politicians realize (or at least they think) there is money to be made here and they will (as always) make a serious effort to snatch up every penny they can.  Some of the unscrouplous nitwits we put in office would dig up a corpse and tax the pennies on a dead man's eyes if they thought it would add more revenue to their coffers. 

                    Closing down football pools! 

                    Jim 

                    Remember guys, it is election year.  The rats will be coming out of the wood work trying to convince their base they are the best thing since flavored Jello.  Democrats will be lying to their voting bases and trying to convice everyone they know best.  Republicans will be lying to their base and trying to convice everyone they know best.  Independants will be trying to find where their base is hidinig. 

                    No one wants to give up the lucrative position they have.  Just think, not only having the ability to vote your own pay raises, and expenses, but to be able to hide it under cover as an automatic pay raise no matter what happens to the average American.  The ability to write laws for everyone, then insert exceptions for yourself.  Wouldn't you be corrupt too?

                    I Agree!, It is an election year!  And this quote from the above article appears to suggest the likelihood is unlikely; "Similar legislation has been introduced over the years, but has been thwarted consistently by notorious gambling lobbyist Jack Abramoff".  Lobbyist are powerful people not to be overlooked.

                    My memory fails me, but there was some scandal unraveling in "P" (politics) city and one of the culprits involved in the rock throwing had some of his 'dirty laundry' exposed!  Needless to say, the heat got colder... politicians were BORN in glass houses!

                      Avatar
                      NY
                      United States
                      Member #23835
                      October 16, 2005
                      3474 Posts
                      Offline
                      Posted: February 20, 2006, 11:14 am - IP Logged

                      << Similar legislation has been introduced over the years, but has been thwarted consistently by notorious gambling lobbyist Jack Abramoff. >>

                      I see I'm not the only one who singled out that line. Abramoff is notorious for his bribery, not his lobbying, and he didn't thwart anything. He can hand out money and lobby until the end of the world, and the laws will still be the result of what our legisators do. It isn't lobbying that's the problem. It's legislators who do what's in their best interest instead of what they really believe is in our best interests. Of course a lot of them really do believe that preventing you from gambling is in your best interests.

                      Laws against bribery may be helpful, but what would really be useful would be an enforcebale law against legislators working for their benefit instead of ours.

                        Avatar

                        United States
                        Member #26469
                        November 18, 2005
                        160 Posts
                        Offline
                        Posted: February 20, 2006, 11:42 am - IP Logged

                        Won't someone think of the children?After all,it's the children who are going online to spend their hard earned money at off-shore gambling sights.We have to protect them.Can't you people see that?It's all about he children!Hey Timmy,can I borrow your credit card?

                          mylollipop's avatar - Trek STLOGO6.png

                          United States
                          Member #24380
                          October 21, 2005
                          623 Posts
                          Offline
                          Posted: February 20, 2006, 11:59 am - IP Logged

                          Parents!

                          • Block the sites online that you don't want the kiddies to visit. 
                          • Block the shows on TV you don't want them to watch.
                          • If they go beyond the controls....

                            Chair

                          Parental Authority always worked in our household.  LOL

                            Avatar
                            Sparta, NJ
                            United States
                            Member #18331
                            July 9, 2005
                            1977 Posts
                            Offline
                            Posted: February 20, 2006, 12:09 pm - IP Logged

                            << Similar legislation has been introduced over the years, but has been thwarted consistently by notorious gambling lobbyist Jack Abramoff. >>

                            I see I'm not the only one who singled out that line. Abramoff is notorious for his bribery, not his lobbying, and he didn't thwart anything. He can hand out money and lobby until the end of the world, and the laws will still be the result of what our legisators do. It isn't lobbying that's the problem. It's legislators who do what's in their best interest instead of what they really believe is in our best interests. Of course a lot of them really do believe that preventing you from gambling is in your best interests.

                            Laws against bribery may be helpful, but what would really be useful would be an enforcebale law against legislators working for their benefit instead of ours.

                            Isn't it strange that legislatures always have to write laws protecting them from bribes?  Why can't they just say NO?  Then on the otherside, the laws they write always manage to have a loophole big enough to drive a Brinks Truck through.  Amazing how they always over look something like that.  I have NO problem with Jack Abramoff, I have a problem with the rich politicians accepting the bribes.  In the commercial business world, the company executive go to jail, not the briber.  Obviously, there is an advantage to be the law writer!

                            Cheers

                            |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                            I only trust myself - and that's a questionable choice