The chairman of the U.S. House of Representatives Financial Services Committee recently sent a letter to all House members asking them to support a bill that would prohibit illegal Internet gambling in the United States.
Rep. Michael Oxley, R-Ohio, titled the letter "Internet Gaming = Money Laundering." In it he cites the International Narcotics Control Strategy Report, a report released in March 2002 by the State Department's Bureau for International Narcotics and Law Enforcement Affairs.
The report states that Internet gambling is "yet another powerful vehicle for criminals to launder funds from illicit sources as well as to evade taxes."
In the letter, Oxley seeks support for H.R. 556, which was introduced by Rep. James Leach, R-Iowa. The bill, if passed, would ban the use of credit cards, electronic fund transfers or any other bank instrument as payment for online gambling. It would also provide both civil and criminal penalties including a permanent injunction against wagering. The bill has been approved at the committee level and is eligible for consideration before the full House.
Oxley's letter is slightly ominous from the I-gaming industry's point of view, said one Washington insider. It means prohibitive Internet gambling legislation is not going away, and it increases the pressure on House leadership to put H.R. 556 on agenda for full House hearing.
Despite this pressure, however, insiders doubt the Leach bill will move anytime soon. A Washington, D.C.-based source told IGN that the bill probably won't make it to the House floor before May because Oxley's office will be preoccupied with hearings about the financial collapse of Enron. Additionally, the source said, Oxley is getting opposition from credit card companies, such as Visa and MasterCard, which don't want to see the bill voted on by the House.
The Oxley letter is one of several efforts of late to garner support for the Leach bill. Leach, Oxley and Rep. John LaFalce, D-N.Y. solicited House members for support through a similar letter that went out Feb. 5. On March 25 the Christian Coalition, a conservative, grass-roots organization, lent both its lobbying power and its member support to the bill.
The Leach bill faces legislative competition from H.R. 3215, the Combating Illegal Gambling Reform and Modernization Act, which was proposed by Rep. Bob Goodlatte, R-Va., on Nov. 1. That bill was reported favorably to the Judiciary Committee from the Subcommittee on Crime on March 12. The Capitol Hill source said it is not yet clear whether the Judiciary Committee will commit its resources to Goodlatte's bill.
Click here to view Oxley's "Internet Gaming = Money Laundering" email.