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

jim695

Unfortunately, our legislators couldn't care less about what we want or what we think.

Our entire political process has become party-driven, and lawmakers' individual decisions regarding how they vote on any given issue are prioritized according to Democratic or Republican agendas; the needs and desires of the "common constituency" are only recognized if they have an organized lobby (pronounced: Special Interest Groups) "donating" to their party's campaigns.

This will never change until people wake up and realize that their habit of voting a straight ticket on election day no longer serves their interests.

I scan seventeen different newspapers every day, and I have yet to read a single story of an American minor getting into trouble for online gambling (with the possible exception of the occasional college student). However, as pointed out in the discussion above, it's obvious from reading those same newspapers that minors have a great interest in pornographic websites. The only verification required to enter such sites is a positive answer to the question, "Are you 18 or older?"

Disguising this legislation as a measure to protect our children from online gambling has no basis in fact, but it does make for a very effective platform with which to ensure its ultimate passage. Since there is no way American lawmakers can tax off-shore or foreign gambling sites, the only short-sighted alternative is to shut them down. The next step will be to authorize state lotteries or even casinos to begin operations which can be taxed, which will lead to more corruption among our lawmakers as they devise ways to route part of that revenue stream into their own pockets. 

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.

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

Thanks!!! 

Another thing with Fair Tax is that the feds could levy that 23% surcharge on all wire transfers of $$$$$ out of the country being made by Mexicans and other nationalities sending US $$$ to their families.  Folks it isn't just the Mexicans sending money "home"  ... it's just that they're in the news now.

Build in the 23% into sites allowed to perform $$$ transfers. 

Yes millions of $$$ are being wired out from untapped underground economies and all they're trying to do is raise taxes to squeeze more blood out of legit above ground economies.

And Jim you're correct that they don't care what we think until it's time to cast out ballots and they'll promise us anything to get those votes.

hsvscubaski

Well said Jim 695. However they do listen when enough people get behind something.  Write your represenatives and ask where they stand on the Fair Tax and if they don't support why not.  They had a Fair Tax rally in Atlanta last month and had 6000 in attendance with more trying to get in.  There is another one in Orlando on 29 July. Go to Boortz.com for info if you live in the area.  And if the Fair Tax became law we would not have to pay a federal tax when we hit the BIG ONE.

hsvscubaski

The Fair Tax also indirectly taxes such thing as drugs and prostitution.  When they spend the proceeds from their "illegal" activities they pay the 23% tax.  For those of you that don't know it you are already paying a 23% more or less tax on things you buy.  When a manufacturor pays taxes he passes it on to you and studies show that it's about the same as you would pay in the new sales tax. and when the employers don't have to pay the taxes prices will come down.

LckyLary

This is the only real problem I have with online gambling: I keep seeing a signature line on here that says to "Elminiate all computerized drawings". I agree with that. Computerized drawings can be easily rigged to draw a combination that has the least amount of tickets picking it. i.e. instead of Pick 4 "1978" it picks Pick 4 "8885" which is much less popular. With a real drawing you see the balls mixing and that it would be almost impossible to cause certain ones to float up into the chute. (This really applies to drawings that pay a fixed amount, not pari-mutuel).

In a real casino, on something like a dice game there are actual cubes bouncing on an actual table that sometimes you get to roll. The casino doesn't need to have your name/address/personal info and you can prevent them from keeping track of your win/loss ratio by not supplying such info in the form of a "comp" card.

In an online casino, EVERYTHING IS "COMPUTERIZED"! The "dice" are part of the same PROGRAM that spits out Keno numbers and that KEEPS TRACK OF your win/loss ratio. They will use psychology so that you do well just long enough to keep playing and then the COMPUTER makes SURE you would lose it back and then some! Because it's not regulated they can make their ratios (even on dice games) whatever they need it to be and you don't know if the "other players" are themselves COMPUTERS teamed up against you!

Yes we should have freedom to do things.. but there should be reasonable limits. Online casino operators should not have the freedom to rip people off... just as you don't have the "freedom" to rob a bank without going to jail. if they can be regulated then I'd have no problem with them being there.

orangeman

Hsvscubaski:

I agree with your point.  Being in the Constitution, however, has nothing to do with my argument.  Just because it isn't in the Constitution doesn't mean the true-believing nuts won't raise hell about it.  If you haven't noticed, the Constitution has little to do with what Congress does anymore.  They pretty much do what they please.  The Consitution also has nothing to do with what the politically-correct liberals believe.  It just gets in their way.

Orangeman                                                                    Thud

teacake58's avatarteacake58

hear hear Fair Tax

LOTTOMIKE's avatarLOTTOMIKE

This is the only real problem I have with online gambling: I keep seeing a signature line on here that says to "Elminiate all computerized drawings". I agree with that. Computerized drawings can be easily rigged to draw a combination that has the least amount of tickets picking it. i.e. instead of Pick 4 "1978" it picks Pick 4 "8885" which is much less popular. With a real drawing you see the balls mixing and that it would be almost impossible to cause certain ones to float up into the chute. (This really applies to drawings that pay a fixed amount, not pari-mutuel).

In a real casino, on something like a dice game there are actual cubes bouncing on an actual table that sometimes you get to roll. The casino doesn't need to have your name/address/personal info and you can prevent them from keeping track of your win/loss ratio by not supplying such info in the form of a "comp" card.

In an online casino, EVERYTHING IS "COMPUTERIZED"! The "dice" are part of the same PROGRAM that spits out Keno numbers and that KEEPS TRACK OF your win/loss ratio. They will use psychology so that you do well just long enough to keep playing and then the COMPUTER makes SURE you would lose it back and then some! Because it's not regulated they can make their ratios (even on dice games) whatever they need it to be and you don't know if the "other players" are themselves COMPUTERS teamed up against you!

Yes we should have freedom to do things.. but there should be reasonable limits. Online casino operators should not have the freedom to rip people off... just as you don't have the "freedom" to rob a bank without going to jail. if they can be regulated then I'd have no problem with them being there.

<snip>

i've collected twice in large amounts online.betslips.com has done me great.both times i won thousands and i got paid.i even posted it here in the forums.........

Todd's avatarTodd

Just so everyone is aware, J0026 signed up using a false location, breaking the rules, and I have a very strong feeling that they are not who they appear to be.  It is someone I have to continually get rid off because they keep trolling the forums with anti-gambling nonsense.

Nobody needs to be concerned, just carry on as usual and ignore the ignoramus.

CalifBoy

I'm wondering, if legistlature of this nature were to be adopted by both the house and the senate, how would this affect sites like BetSlips and PTS?  Since I am paying them for the service of purchasing a legitimate ticket, which they are not transporting across State lines, nor making copies of do you think they would be continue to be allowed to operate? 

 

To me, it seems a lot different than gambling on some site that makes up its own games.

Just6ntlc

If legislators ban online gambling, that would be great. People will have to travel from state to state buying other state's lotto. I think people should do online gambling should be 18/21 or over.

konane's avatarkonane

I'm very much in favor of individual state lotteries being able to sell tickets online.  Yes Nod

Were it legal then I would do so in the comfort of my own home just like any other online purchase.

  .... also feel that ticket sales would be increased for all state lotteries set up to sell online

I suppose the bill being considered before congress is why Georgia tabled their online ticket sales proposal until whatever legislation makes its way through on a federal level.

Todd's avatarTodd

If legislators ban online gambling, that would be great. People will have to travel from state to state buying other state's lotto. I think people should do online gambling should be 18/21 or over.

You are not making any sense.

You say how great it would be to ban online gambling, and then go on to say that people over 18/21 (whatever that means) should be allowed to gamble online.

Do you really have an opinion on this?  Please explain why you think it would be good to ban people from online gambling.

dvdiva's avatardvdiva

I think those in favor of online gambling bans should also favor total gambling bans. If you want to ban gambling in the privacy of your own home where it doesn't add traffic or crime out on the streets then banning all casinos and lotteries in the US should also make sense. Clearly people can waste their money at either.

Saleo Paleo's avatarSaleo Paleo

Our legislators have far more to worry about than online gambling,they should give more attention to how they are spending our tax dollars,I'm sure lot's of our tax dollars are spent on gambling by these so called Congressmen and Senators.on there foreign trips to those countries,with gambling facilities.

Todd's avatarTodd

dvdiva and Saleo,

You both make perfect sense to me!

I Agree!

gandolph

Our day in America is the "Age of Irresponsibility."  In other words, the National Motto ought to be changed to "It isn't my fault."  So far as Internet wagering, sweeps, and lottery go, the rationale that it is too easily within reach of minors illustrates my thesis.

Minor children are the responsibility of their parents.

Parental authority is equal to parental responsibility.

Society is not responsibile for the behavior of juvniles; parents are.  Parents should either totally restrict their kids' access to pornography, to Internet wagering, to chat rooms, to all the forbidden temptations out there----or the parents should teach their children responsible behavior.  If they don't, the parents have no right to put the blame on Society, or to expect the external controls of society to substitute for their own irresponsibility.

The Internet is an adult venue;  if juveniles are going to have access to it, they must comply with good sense and good judgment.  It is their parents' task to see that their children are obedient.  Granted, that isn't the value-system of modern America.  But we adults shouldn't stand back and allow the politicians to pander to the parent vote---by manipulating us so as to "protect" the juveniles from their own folly. 

What is lacking here is parental responsibility.

                                                          gandolph

MADDOG10's avatarMADDOG10

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."

What needs to be done, is they need to investigate these two fine fellow citizens whom are supposed to be politicians. I wonder if the lobbyist have fattened their bank accounts over this. There is a paper trail everywhere.

If they're really that concerned over this, they need to go after the sites that allow underage gambling or the ones that have'nt paid their taxes. It's really no wonder why they can't agree to disagree..! 

Jimiam's avatarJimiam

Regarding the post on fair tax. You will never see the end of Irs. Why? Because they are private collection agency for our scam banking system we have today and pigs in Washington are paid well by these banking pigs. Get it. Your current Pres himself is powerless to these European scamsters. He is just a peon and a gopher to them. And as far as your Constitutional rights; well you really have none my friend. Only what rights your Pres decides to give you as privilege. This is why you have a license to drive your car. Its a privilege given to you by your President. In Gods eyes this is your god given right to travel freely, unemcumbered. Thats why when you go into court and people try to assert their constitutional right they get contempt of court and thrown out of court. Our courts don't deal in constitutional arena, but martial, executive law. In other words you really don't have constitional right. You just think you do and medial sometimes portrays to people this lie. Don't like it. Deal with it. That's what happens when country got seperated from God's law years ago in favor of our scam banking system of today.

Have a nice day!

Todd's avatarTodd

Our day in America is the "Age of Irresponsibility."  In other words, the National Motto ought to be changed to "It isn't my fault."  So far as Internet wagering, sweeps, and lottery go, the rationale that it is too easily within reach of minors illustrates my thesis.

Minor children are the responsibility of their parents.

Parental authority is equal to parental responsibility.

Society is not responsibile for the behavior of juvniles; parents are.  Parents should either totally restrict their kids' access to pornography, to Internet wagering, to chat rooms, to all the forbidden temptations out there----or the parents should teach their children responsible behavior.  If they don't, the parents have no right to put the blame on Society, or to expect the external controls of society to substitute for their own irresponsibility.

The Internet is an adult venue;  if juveniles are going to have access to it, they must comply with good sense and good judgment.  It is their parents' task to see that their children are obedient.  Granted, that isn't the value-system of modern America.  But we adults shouldn't stand back and allow the politicians to pander to the parent vote---by manipulating us so as to "protect" the juveniles from their own folly. 

What is lacking here is parental responsibility.

                                                          gandolph

I Agree!  Well said!

wass2000

Our day in America is the "Age of Irresponsibility."  In other words, the National Motto ought to be changed to "It isn't my fault."  So far as Internet wagering, sweeps, and lottery go, the rationale that it is too easily within reach of minors illustrates my thesis.

Minor children are the responsibility of their parents.

Parental authority is equal to parental responsibility.

Society is not responsibile for the behavior of juvniles; parents are.  Parents should either totally restrict their kids' access to pornography, to Internet wagering, to chat rooms, to all the forbidden temptations out there----or the parents should teach their children responsible behavior.  If they don't, the parents have no right to put the blame on Society, or to expect the external controls of society to substitute for their own irresponsibility.

The Internet is an adult venue;  if juveniles are going to have access to it, they must comply with good sense and good judgment.  It is their parents' task to see that their children are obedient.  Granted, that isn't the value-system of modern America.  But we adults shouldn't stand back and allow the politicians to pander to the parent vote---by manipulating us so as to "protect" the juveniles from their own folly. 

What is lacking here is parental responsibility.

                                                          gandolph

Well Written, I Totally agree.

It seems we always need to blame somebody else for our failures. or even sometimes move responsibilities and dicsion-making for somebody else, it is easier that way.

Wass

 

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