aucu
Monday, September 18th, 2006, 11:06 AM
update
http://washingtontimes.com/op-ed/20060915-090722-7421r.htmhttp://www.theleafchronicle.com/apps/pbcs..../609180301/1014Senate Majority Leader Bill Frist is trying to force through a restriction on Internet gambling by incorporating it into the FY 2007 defense appropriations bill, according to reports. By attaching a measure intended to ban Internet gambling to a necessary armed services appropriations bill, Mr. Frist would deprive the members of the opportunity to debate and voice their opposition to this controversial legislation. Indeed, no Senate committee has held a single hearing to debate online gambling prohibition. Although a bill banning Internet gambling passed in the House in July, companion legislation has not yet been introduced in the Senate. Mr. Frist should not be so eager to bypass a much-needed discussion on this legislation.
The legality of Internet gambling, which ranges from casino games to horse racing and lottery, is ambiguous. The Justice Department believes that it's illegal under the 1961 Wire Act, but, without a successful prosecution, it's not clear how that argument will stand up in court. Hence the House, led by Republican Reps. Bob Goodlatte and Jim Leach, passed an anti-gambling ban that would update the Wire Act and prevent credit card companies and banks from processing transactions from gambling Web sites, all in order to ban online gambling -- with the exception, that is, of the carve outs secured by special-interest groups for online horse racing and the lottery.
We support an individual's right to be free to gamble online and opposes a proscription on those grounds, and on the grounds that enforcement would be so difficult as to make it untenable. Between our view and the outright prohibition that Mr. Frist supports, however, is the position that regulation could legalize Internet gambling and bring the nearly $4 billion offshore industry back into the United States and under U.S. controls. This is the option that many gambling Web sites and their supporters have advocated, and it is clearly better than the complete moratorium Mr. Frist is trying to push through the Senate.
At the very least, this legislation deserves a thorough debate and vetting. Senators deserve the chance to ask some important questions. Why the carve out for horse racing and the lottery? How will the proposed prohibition function if gamblers use foreign banks not subject to U.S. regulations? And if it gamblers do circumvent the restriction, will federal regulators start banning access to certain Web sites? Or will they start targeting individual gamblers?
These are questions that should not be thrown to the wind, but will be if Mr. Frist succeeds and the legislation becomes a part of the defense appropriations bill.
And
The Internet gambling industry — headquartered almost entirely offshore — is an estimated $10 billion a year business. And it's one in which some members of Congress would like to shut down, at least to its American customers.
This summer the House approved a sweeping Internet gambling measure, but the Senate hasn't followed suit. That's led Senate Majority Leader Bill Frist of Tennessee to try an end run.
His aides have been working to attach a prohibition on using credit cards to settle Internet gambling debts to a compromise Defense Department authorization bill.
Frist is on the right side of this issue in principle. For example, if a state such as Tennessee prohibits gambling, with exceptions only for state-run games such as the lottery, then companies really shouldn't be getting around state law by offering the games over the Internet. Additionally, the U.S. Justice Department has contended that online gambling is banned outright under the U.S. Wire Act of 1961.
Still, the issue of finding ways to enforce a prohibition against online gambling doesn't belong in a bill dealing with U.S. military operations. It should be debated separately on its merits, just as it was in the House.
In that House bill, the Unlawful Internet Gambling Enforcement Act, federal law prohibits processing financial transactions related to online gambling, a move that was strongly opposed by the banking industry. It also was criticized for containing loopholes like the one that allowed betting on horse racing to remain legal.
As with many issues these days, there are so many competing interests when it comes to Internet gambling, which is rapidly expanding to cell phone gambling as well.
Our federal lawmakers need to decide if they are going to take a substantive stand against this form of vice or simply turn a blind eye as people throw their money away on a fool's bet.