Mr. Chairman, thank you for holding this hearing on the Internet Gambling Prohibition Act.

Because this legislation seeks to regulate Internet service providers and the interstate services they provide to subscribers, this legislation falls within the scope of this Committee's jurisdiction over interstate and foreign commerce.

The Judiciary Committee lent its considerable experience in criminal law to this bill. Now this Committee will examine the implications of this bill on interstate and foreign communications, and in particular, the impact of this bill on the Internet.

I share the goals that the sponsors of this bill have, including my friend and colleague, Mr. Goodlatte . . . who is with us once again today. Like him, I am troubled by the ills that gambling visits on our society. And I am especially troubled by the implications of Internet gambling . . . including its impact on children and those with compulsive gambling habits.

Having said that, I come to this hearing with an open mind as to whether this bill, as reported by the Judiciary Committee, is the most effective means of addressing what we all agree is a serious problem. I am interested to learn more how the exemptions in this bill for horse racing and other forms of gambling can be explained as consistent with a bill designed to prohibit gambling.

Moreover, I believe it is important that we hear from those who sought - but were ultimately denied - similar exemptions from the bill's prohibition . . . such as the state lotteries and charitable organizations.

I am particularly curious to learn more about the bill's enforcement provisions. More to the point, I note that the bill would require any and all interactive computer services to essentially act as surrogates for federal and state prosecutors. I intend to explore further this issue of using the private sector as a means of implementing criminal law.

Mr. Chairman, this is a distinguished panel of witnesses . . . which includes Ms. Anne Paulson, from the Virginia Thoroughbred Association in Warrenton, Virginia. Welcome to you, Ms. Paulson. I look forward to your testimony, and that of the other witnesses.

I also look forward to learning more from them about this legislation, and to determining what, if anything, this Committee can do to improve the bill.

Thank you, Mr. Chairman, and I yield back my time.