Mr. Chairman and members of the Subcommittee, thank you for the opportunity to testify on behalf of the National Collegiate Athletic Association (NCAA) in support of H.R. 3125, the "Internet Gambling Prohibition Act of 1999." The NCAA is a membership organization consisting of nearly 1,000 universities and colleges and is devoted to the regulation and promotion of intercollegiate athletics for over 330,000 male and female student-athletes.

The NCAA has long opposed sports gambling because of its potential to jeopardize the integrity of intercollegiate athletics contests and to threaten the welfare of student-athletes. Despite federal and state laws that prohibit sports gambling in nearly every state, this activity remains a growing problem on college campuses nationwide. Over the past several years, point shaving scandals on the campuses of Northwestern University and Arizona State University have received widespread media coverage. The impact of these cases must not be minimized. Several of the student-athletes involved were indicted and sentenced to serve time in federal prisons. Coaches and teammates were betrayed and the two schools involved have seen their reputations tarnished. It is clear that sports gambling is not a victimless crime.

A growing consensus of research reveals that the rates of pathological and problem gambling among college students are three times higher than the adult population. This fact surely did not go unnoticed when the National Gambling Impact Study Commission recommended a federal ban on Internet gambling nearly one year ago today.

As you can see, there is reason to be concerned about the impact of gambling on today's youth. Therefore, it should not be surprising that Internet gambling presents a multitude of new potential dangers for young people. College students are perhaps the most wired group in this country. They can surf the Web in their school library, in a computer lab or in the privacy of their dorm room. Now, with the emergence of Internet gambling, students can wager behind closed doors, in virtual anonymity. This new industry has raised the fears of those concerned about the threat of sports gambling. Three years ago, there were 50 Internet gambling sites, now there are 750. Today, the possibility exists for student-athletes to place wagers over the Internet and then attempt to influence the outcome of the contest while participating on the court or playing field.

However, the impact of Internet gambling on campus is not a problem that is limited to athletics. If left unchecked, the growth of Internet gambling could be fueled by college students. Today, you will hear a video taped account of a college student who, in just three months, lost $10,000 gambling on sports over the Internet. This student contacted the NCAA after watching an ESPN segment on Internet gambling. After months of discussion, the student agreed to tell his story at a number of NCAA seminars held for athletic administrators. This video tape was filmed at one of these sessions.

Please be assured that this student's experience is not unique. The NCAA has heard from others with similar stories and the media is widely reporting on this emerging problem among young people. The reality is that students have the means to participate freely in this activity. Studies reveal that over 70% of students have credit cards and 20% have four or more cards. They are being aggressively solicited by credit card companies who are awarding cards with up to $5,000 credit limits to students who have no jobs and little, if any, credit history.

For students, the question of whether Internet gambling is legal has caused great confusion. Visit an Internet gambling site's Web page and you will find misleading statements like the one from Diamond Sportsbook International (DSI). It reads: "DSI is a fully licensed offshore race and sports book, ...founded as an alternative to the illegal bookmaking operations found within the U.S." DSI conveniently fails to mention that its sports gambling operations are, in fact, illegal in the U.S. But perhaps the best explanation of why there is such uncertainty surrounding the legal status of these gambling sites among students is that many of them conclude that "if it is on the Internet it must be legal."

Federal legislation is desperately needed and we are running out of time. Internet gambling is growing at a rapid pace. Agreements have already been made with equipment manufactures to bring Internet gambling to wireless handheld devices. Imagine students placing Internet bets on their cell phones. A Nevada legislator has already warned that if federal legislation fails, U.S. casinos will enter the marketplace. You can bet that Internet gambling will really take off if casinos like Harrah's work to establish its recognized brand name in this industry. The House sponsors of H.R. 3125 have worked several years on trying to craft a bill that addresses the areas of concern and that has the best chance of passage. The NCAA urges Congress not to let this opportunity slip away. If legislation is not enacted by the end of this legislative session, it is likely that Congress will not be able to check the explosive growth of the Internet gambling in the future.