The Unlawful Internet Gambling Act passed the House on July 11 and strengthens the existing law -- the Federal Wire Act of 1961 -- that was used to argue that online gambling is illegal by preventing banks and credit card companies from collecting for internet gambling sites.
According to the American Gaming Association, online gambling is a $12 billion industry fueled mostly by U.S. bettors, though the companies that run internet gambling sites are based in countries that allow the practice, such as England and Costa Rica. U.S. officials say such foreign companies are subject to U.S. law, since so much of their revenues are earned from American customers.
The bill's main supporter, Sen. John Kyl (R-Ariz.), says he plans to push future legislation that would broaden the Justice Department's ability to "continue aggressively pursuing those that wish to circumvent the rules and engage in this sort of illegal activity."
Critics argue that the bill's passage is contrary to the government's allowance of lotteries and horse racing, and that the government would be better off taxing and regulating internet gambling, rather than outright banning it. They also say state and federal governments only ban online gambling because they do not make money off the practice, as they do from lotteries and horse racing.
Rep. Shelley Berkley (D-Nevada) says, "This bill's advocates proclaim the immorality of online gaming and shout it will destroy our society -- unless you're betting on horse races."
The result of the new legislation seems clear: The government will shut down all forms of gambling that don't earn it money. As such, the law seems a lot more like a protection racket than any genuine attempt to protect Americans from the evils of gambling activities.
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