Rep. Bob Goodlatte (R-VA) and Rep Rick Boucher (D-VA) today called a press conference to announce their introduction of legislation aimed at prohibiting gambling via the Internet and other remote means. Called the Internet Gambling Prohibition Act, the bill seeks to update the federal Wire Act to specifically outlaw all forms of gambling via interactive technologies. Upon the bill's introduction it was referred to the House Judiciary Committee, on which Goodlatte and Boucher are both members, for further consideration.
"I have been continuously committed to putting an end to gambling on the Internet," says Rep. Goodlatte. "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. The Internet Gambling Prohibition Act brings the current ban against interstate gambling up to speed with the development of new technology."
A press release distributed from Goodlatte's office today notes that "it is unclear whether using the Internet to operate a gambling business is illegal," and that the closest useful statute is the Wire Act, a bill created in the 1960s to prevent illegal bookmakers from accepting sports wagers over phone lines.
Many legal experts argue that because the Wire Act was written at a time before the proliferation of the Internet could have been imagined that the Wire Act neither pertains to casino gaming or to gambling that uses Internet or other remote means for the communication of betting information. Nonetheless, the law has still been effective in forcing remote gambling companies to stay away from the U.S. mainland and to establish their headquarters in offshore jurisdictions instead.
In order to clarify the new types of gambling would be outlawed, Goodlatte's Internet Gambling Prohibition Act specifies that the transfer of betting information via cable, satellite, and microwave would be illegal, whereas at the moment the language of the Wire Act only prohibits transmissions via cable and wires. The new bill further clarifies that connections that are either fixed or mobile would be outlawed in addition to expanding the definition of "bets or wagers" to include casino games.
"The explosive growth of the Internet has provided a means for gambling operations to evade existing anti-gambling laws," states Boucher, a Democrat. "These Internet gambling websites typically operate offshore and often serve as a prime vehicle for money laundering and other criminal enterprises. Our bill sensibly updates federal law to keep pace with new technologies by bringing Internet within the fold of the anti-gambling restrictions that govern telephones."
Goodlatte's press release further states, "The Internet Gambling Prohibition Act allows states to continue to regulate gambling within their borders with tight controls to be sure that it does not extend beyond their borders or to minors. It also prohibits a gambling business from accepting certain forms of payment, including credit cards, checks, wire and Internet transfers, in illegal gambling transactions. The legislation also allows federal, state, local and tribal law enforcement officials to seek injunctions to prevent and restrain violations of this Act and obtain cooperation in the fight against illegal gambling.
The bill would also extend the maximum prison term for a violation of the Wire Act from two years to five years.
For the moment it isn't clear how the revised definition of illegal gambling forms would be effective in curbing gambling that is conducted with companies that are already based offshore to begin with. It also isn't clear how the bill will be able to enforce its proposed goal of prohibiting offshore gambling businesses from accepting certain forms of payment.
Goodlatte's office would not return calls to IGN.
Motivation
"Illegal online gambling doesn't just hurt gamblers and their families, it hurts the economy by draining dollars from the United States and serves as a vehicle for money laundering," comments Goodlatte in today's statement from his office. "It is time to shine a bright light on these illegal sites and bring a quick end to illegal gambling on the Internet."
Goodlatte attempted to pass very similar legislation in both the 106th (1999-2000) and 107th (2001-2002) Congress. His bill very nearly passed the House of Representatives in 2000, having achieved 61 percent approval but falling just shy of the 67 percent required under a suspension calendar rules.
Goodlatte now claims that his bill was derailed Jack Abramoff—a Republican lobbyist and fundraiser who has already plead guilty to several political crimes and still faces more charges-- and the lobbying effort he led against it.
A plea agreement reached by Abramoff with the Department of Justice in January 2006 verifies that Abramoff received assistance from Tony Rudy, a staffer of then Majority Whip Tom DeLay, in stopping the bill. At the time Abramoff's lobbying firm was working to block the bill on behalf of Connecticut-based eLottery Inc., a company that wants to facilitate the sale of state lottery tickets over the Internet. Abramoff allegedly paid $50,000 to Rudy's wife in exchange for Rudy assisting in having the bill placed on the suspension calendar, which requires bills to obtain two-thirds approval in the House, rather than a majority.
With both Abramoff and DeLay having fallen from grace, Goodlatte is hoping to capitalize on the fact that other members of the Republican Party appear eager to atone for their corruption.
Click here to view the Internet Gambling Prohibition Act.