Mr. Chairman and Honorable Members of the Subcommittee on Telecommunications, Trade and Consumer Protection. My name is Michael Bowman and I serve as the Vice President for Government Relations at Family Research Council. I thank you for the opportunity to discuss our support for HR 3125, the Internet Gambling Prohibition Act, sponsored by Bob Goodlatte.

Family Research Council believes the Internet should remain a forum of lawful ideas, a medium of information, entertainment, and commerce. The Internet is clearly a remarkable technology that allows tremendous access to information never before dreamed of. The Internet and telephone, for example, can be used for unlimited good. As we have learned with child molesting, obscenity, and drug trafficking, however, both the telephone and Internet can also be used for illegal gains. FRC does not believe the Internet should be able to undermine state or federal laws that are designed to protect the safety and general welfare of its citizens.

FRC is concerned about the prolific growth and expansion of the gambling industry in America. This bill does not solve all the problems; it does however, provide a powerful framework to prevent gambling from illegally entering millions of homes in America via the Internet. Let me reiterate we are opposed to the expansion of all forms of gambling, and are especially concerned about the easy accessibility of gambling of state lotteries, and other forms of convenience gambling, such as video poker and keno, and above all, the Internet. Much of our future focus on the gambling issue will be at the state level. We will continue our fight but Congress will enable the states to make these decisions with credibility if this legislation becomes law.

Are some forms of gambling worse than others? The answer is clearly yes. Family Research Council strongly opposes state-sponsored gambling. The National Gambling Impact Study Commission states, " The Commission recommends to state governments and the federal government that states are best equipped to regulate gambling within their own borders with two exceptions--tribal and Internet gambling." The federal government is involved in this issue because of the ability of the Internet to transcend state boundaries. No single state can adequately address this problem, so the federal government must intervene and strengthen federal law in this area.

According to Tim Kelly, former executive director of the National Gambling Impact Study Commission, "states spend more than $400 million annually promoting their lotteries with often misleading and deceptive advertising." Currently, state lotteries are exempt from the Federal Trade Commission truth-in-advertising standards. It is clear that themes such as, "Answers to your dreams", are at best misleading if not outright lies. The most common theme in advertisements is enticing people with the size of the jackpot, yet never posting, educating or alerting people to the actual odds of winning. In contrast, private companies must post odds for simple sweepstakes. What is even worse is the message gambling sends to children: "luck" is the ticket to success, not hard work. These types of ads also target those who can little afford to purchase tickets.

Family Research Council is greatly concerned about the lack of consumer protection from an industry that has created 7.5 million adult problem or pathological gamblers. The 1997 National Gambling Commission study also estimated there are 7.9 million adolescents who are problem or pathological gamblers and all evidence shows that these numbers are continuing to rise. The National Academies of Science found that, "pathological gamblers engage in destructive behaviors: they commit crimes, they run up large debts, they damage relationships with family and friends, and they kill themselves." People have lost their entire life savings in a single night due to gambling addictions. In fact, one 16-year-old boy attempted suicide after losing $6,000 on lottery tickets!

Additionally, the provisions in the bill that allow the pari-mutuel industry to continue its activities on the Internet is unfortunate but does nothing to expand existing realities. This bill provides a strong incremental approach to banning all forms of gambling on the Internet. Many groups support H.R. 3125, including: Focus on the Family, Christian Coalition, the FBI, the National Association of Attorneys General, the National Football League, the National Collegiate Athletic Association, the National Council of Churches, Jerry Falwell Ministries, and the Presbyterian Church (USA). Please be aware, however, that FRC will oppose the bill if any additional exceptions are listed, including any provision that would allow for state lotteries to sell tickets or any type of lottery game over the Internet.

We applaud Congress for taking a serious look at how Internet gambling has crept into our homes and lured many, even children, to become desperate addicts. With the stroke of a pen, it should be banned, just as fast as it now can be accessed with a click of a mouse.

Finally, I would like to close with a quote from the Gambling Commission report. The report stated, "...The central issue is whether the net increases in income and well-being are worth the acknowledged social costs of gambling." Members of the Committee, the social costs are simply too high. I urge you to pass H.R. 3125 and help protect American families.