Putting a Stop to Internet Gambling

20 June 2000
by Congressman Bob Goodlatte

No longer do people have to leave the comfort of their homes to travel to a casino; they can access casinos from their personal computers - as well as all of the problems of addiction, crime, bankruptcy and family difficulties that come from gambling.

Gambling on the Internet has grown to a more than billion-dollar-per-year unregulated industry. Users do not know whether they are receiving fair odds, or even if they will be paid if they win at some of the more than 700 cybercasinos and sports-betting Web sites.

Of greatest concern is the impact on children exposed to gambling on the Internet while sitting in their living rooms, or even at school, without the careful safeguards required by the legalized gambling industry to ensure that children are excluded.

To combat this growing problem, I introduced H.R. 3125, the Internet Gambling Prohibition Act. H.R. 3125 is similar to legislation sponsored by Sen. Jon Kyl, R-Ariz., and passed by the Senate by unanimous consent last fall. The goal of the legislation is to ban casinos, sports wagering and other forms of gambling on the Internet.

The federal government always has had a role in helping states fight illegal gambling across state lines.

This legislation does not expand that role but merely modernizes the out-of-date Federal Wire Act to take into account new technologies used by those who attempt to evade the law and provide illegal gambling services.

State-regulated parimutuel industries (horse and dog racing and jai alai) are allowed under the legislation to use the Internet for limited purposes under a closed-loop, subscriber-based system. The system recognizes state regulatory authority, while limiting that scope only to what is currently lawful and requiring that it not be accessible to minors.

Internet gambling is an extremely lucrative business; there is a lot of money that stands to be lost if this legislation is enacted.

As the National Gambling Impact Study Commission has documented, Internet gambling is growing at an explosive rate.

The stakes are high.

The time to put a stop to this harmful activity is now.

Congressman Goodlatte represents the Sixth Congressional District of Virginia and is Co-Chairman of the Congressional Internet Caucus and Chairman of the House Republican High Tech Working Group.