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Internet Gambling Legislation Passed: A Victory For Families

 

by Chad Hills

The Unlawful Internet Gambling Enforcement Act of 2006 (H.R. 4411, Leach-Goodlatte) was passed by the House, the Senate and signed by the President on October 13, 2006.

A Vote Heard Around The World - A Victory For Families

Citizens of the United States have good reason to celebrate: Congress passed legislation, squeezing illegal Internet gambling and cutting off the supply of U.S. gambling funds to foreign Internet casinos.

The National Gambling Impact Study Commission Report recommended that Internet gambling be prohibited because of the immense dangers it posed to America. After seven difficult years of trying to pass such legislation, the Internet Gambling Prohibition and Enforcement Act is finally headed for the President's desk.

News of the bill's passage was literally heard around the world, sending two of the largest online gambling operations into stock shock - share prices plummeted and many online gambling operations closed the door on U.S. business. Internet gambling is a $12 billion industry worldwide, taking half - $6 billion - of their revenues from U.S. citizens last year. Online gambling just lost their largest client, and foreign investors are taking note: online gambling's a bad bet.

After losing roughly half their income supply from the United States, foreign Internet casino operators will be pushing the Treasury Department and Congress to create "porous" regulations, allowing loopholes for online gambling to still operate in the our nation. Know the facts about this legislation and be sure your congressional representatives also know the facts. Send them the two PDF documents contained in the links below. We've come too far for too long to have the online gambling cartel taint or weaken this important pro-family legislation!

October 5, 2006
Senator Bill Frist Writes an Op-Ed Concerning Internet Gambling

Before it wrapped up business before the elections, Congress passed an important new law to make it easier to crack down on illegal Internet gambling. I believe that America needed this law because Internet gambling presents a serious and growing problem that existing laws don’t address. The new law passed because members of the pro-family movement — including many people involved with Focus on the Family - brought the issue to the attention of both Democrats and Republicans.

A quick Web search reveals that Internet gambling has grown out of control. Although four major federal laws and hundreds of state policies already make it illegal to gamble on the Internet, enforcement has proven almost impossible. Since all significant gambling Web sites operate outside of the United States, they lie beyond the reach of federal or state regulators.

This hurt families throughout the country. Although Internet gambling did not have a prominent place on either party’s radar screen just a few years ago, its explosive growth and potential for damaging families made it a very important issue to me and many others in Congress.

In fact, online casino Web sites have the potential to turn every personal computer in the country into a miniature version of the Las Vegas Strip. Rigorous state enforcement means that brick and mortar casinos make a good faith effort to keep minors away from gambling. The same isn’t so for online casinos: a Web site can’t tell whether someone is 13 or 33. The existence of Internet gambling, moreover, makes a mockery of laws in states that forbid casino gambling. Experts who testified before Congress agreed social trouble has increased as a result: people who play casino games online are almost twice as likely to become problem gamblers as those who gamble in other places. Problem gambling destroys lives and families.

The new law, which President Bush is expected to sign later this month, makes it much more difficult to send money to Internet gambling sites. Internet casinos that want to accept credit cards, internet bank transfers, or any other illegal gambling payments will find themselves blocked. It’s important that people in the pro-family movement remain vigilant to be sure that the regulations implementing this law accomplish all that Congress intended. The government will also be able to ensure that Web site operators don’t provide links to gambling Web sites. Finally, anybody who violates the Internet gambling law can have all gambling licenses revoked: thus, any land or water-based casino operator that opens a gambling Web site could see all of its casinos shut down.

Some believe that Congress should have gone even further in amending and strengthening current laws, but the enforcement tools provided by this legislation is an essential step towards ensuring that we uphold the current law and punish those who break it.

We already have evidence that the law will work. As soon as the bill’s passage was announced, shares in the United Kingdom’s largest online gambling companies have dropped more than fifty percent on the news of Congress’ action. At least one major online casino has already decided to pull out of the U.S. market altogether and others appeared likely to follow suit. Internet casinos, which made a fortune violating existing laws, bet against Congress taking them on. Thanks to citizens concerned about America’s families, their bets didn’t pay off.

-Bill Frist, MD United States Senator, Tennessee United States Senate Majority Leader

Contact Sen. Frist

 

  • Read the Unlawful Internet Gambling Enforcement Act of 2006 Fact Sheet Booklet
  • See supporters of this far-reaching pro-family legislation
    •  
    Read The Latest News
     
    Internet Gambling Was Hanging In The Balance ...

    After a series of meetings in D.C., the combined Goodlatte-Leach Internet Gambling bill (HR 4411), Goodlatte's text was stripped in the Senate's amended version of the bill.

    Rep. Goodlatte's text did two basic things:
    1) The Federal Wire Act was to be updated to include prohibition of gambling using wireless forms of communication.
    2) The Department of Justice was given authority to prosecute illegal Internet gambling.

    Congress was being heavily pressured from foreign Internet gambling lobbyists, commercial gambling and the horse racing industry. Undoubtedly, these special interests had their say, influencing key senators.

    Leach's portion of the bill - the segment that passed - requires banking and credit card industries to stop payment on illegal online gambling operations (cutting the $6 billion U.S. supply line to off-shore Internet casinos).

    Focus on the Family supports the Senate's current version of the bill (Leach's original bill, without Goodlatte's language), but we also know the Federal Wire Act of 1961 still needs to be updated.

    Rep. Goodlatte vetoed the Senate version of the bill (when his language was stripped) and the House followed his lead. The Speaker of the House, Rep. Hastert, was left to decide whether the House would support the Senate's amended version of the Internet bill or not. Although this legislation was stronger with Goodlatte's language added, it still cuts off U.S. money to foreign gambling entities through federal law, which is better than continuing to allow 2,500-plus illegal unsolicited virtual casinos into American homes.

    Before The Vote: Frist Outlines Autumn Agenda
    Floor Speech - Remarks as Delivered
    September 5th, 2006 - "Mr. President, like many of my Senate colleagues, I spent the past month traveling the country. I began and ended my trip in Tennessee — and visited many states in between ...

    "We need to continue securing America's health by bringing Health IT legislation to conference. And we must continue to secure America's values by promoting sound government. That begins with fulfilling our constitutional duty of advise and consent by bringing more judicial nominations to the floor for confirmation....

    "And it continues with addressing internet gambling. As it is now, this industry threatens to undermine the quality of life of millions of Americans by bringing an addictive behavior right into our living rooms...."

    Read Sen. Frist's entire speech.



    Thank Key Congressmen

    Be sure to contact Senator Frist and thank him for placing Internet Gambling (H.R. 4411) on the Senate's autumn agenda and bringing it to the floor for a vote.
    Call: (202) 224-3344
    Fax: (202) 228-1264
    E-mail: Click here.



    Be sure to thank the following Congressmen for leading the charge and not giving up on this Internet gambling legislation:

    Sen. Kyl (202) 224-4521

    Rep. Leach (202) 225-6576

    Rep. Goodlatte (202) 225-5431

     


    The information below is from previous Take Actions concerning Internet gambling bills.
    Thanks For Calling Your House Representatives About The Internet Gambling Bill (H.R. 4411). They Listened!
    House Vote Passes Ban On Internet Gambling: 317-93
    On Tuesday, July 11, 2006, the U.S. House voted to pass the Unlawful Internet Gambling Enforcement Act of 2006 (H.R. 4411). This is great news, after weeks of discussion and deliberation concerning the details of this bill, which represents the Goodlatte bill (H.R. 4777) and Leach bill (H.R. 4411) merged into one bill (kept the H.R. 4411 bill number).
    Reps. Shelly Berkley (D-NV), John Conyers, Jr. (D-MI), and Robert Wexler (D-FL) proposed an amendment that would have infringed on states' rights to control gambling laws within their own borders. Ultimately, this amendment would have "poisoned" H.R. 4411 and would have most likely killed the bill. Fortunately, the amendment vote failed (114-297) mostly along party lines.

    See how members of the House voted.

    Read Bloomberg News summary of the House hearing.
     
    The Goodlatte Bill (HR 4777) Merges With The Leach Bill (HR 4411) To Form A Stronger Bill Against Internet Gambling

    On Wednesday or Thursday of next week (July 12 or 13) the House of Representatives will consider H.R. 4411, the Internet Gambling Prohibition and Enforcement Act. The legislation (link below) from the Rules Committee Web site is the "merging" of the Goodlatte and Leach Internet gambling bills - both very strong alone.

    Read merged text of H.R. 4411.

    Contact your Congressional House Representatives. Call, e-mail and fax them today! They need to hear from you before Wednesday, July 12.

    Why? Because the Internet gambling lobby (mostly off-shore foreign casinos) and online poker groups will be lobbying very aggressively against this legislation (because they don't want to lose American gambling money leaving our country). This bill, H.R. 4411, will be on the House floor next Wednesday or Thursday.

    Congressional leaders, with ties to the gambling industry, will try to "amend" this legislation - or add inclusions to it - that could ultimately kill this bill. It's important that this bill is not amended or at least not amended to the point where the bill is "poisoned" and defeated.

    The Internet gambling lobbyists will contend that this bill:

    1. Has special carve-outs for certain kinds of gambling like horse racing or fantasy sports (this bill addresses Internet gambling, specifically foreign gambling - not horse racing or legislation that already exists)
    2. It needs to be "strengthened" to stop ALL gambling (will kill the bill because it tries to legislate too much at once)
    3. This legislation cannot be enforced and Internet gambling cannot be stopped (at least that's what they want you to believe ... that you're powerless to stop Internet gambling - they're wrong, and that's what scares them)

    The way to stop this speeding out-of-control Internet-gambling train is to take out a bridge. The online gambling cartel is trying to convince our congressmen that "regulation" and "legalization" are the answers, because Internet gambling cannot be stopped. Don't believe their propaganda. The irony of their statements gives them away: How can you "regulate" something if you cannot stop it? Ridiculous. Federal legislation is the bridge that can make or break Internet gambling.

    Fear is driving most of the action against this H.R. 4411, because this legislation will give the Department of Justice the teeth it needs to stop illegal Internet gambling and stop this speeding train before it comes crashing into your home. Neither children nor adults need to be tempted by the constant barrage of online gambling in their homes. Act now, on behalf of yourself and families across our nation, to stop illegal Internet gambling.

    Just follow the money. You'll find that the $12-billion illegal off-shore gambling industry is funding the lobbying against this legislation. They have only one interest: ensuring that their industry thrives and grows at your expense! Take action today.

    Find your Congressional House Representatives. Call, e-mail and fax them today!

    Encourage your House Representatives to:

    • Support the Leach/Goodlatte Internet bill (H.R. 4411) as is, without amendments.
    • Support this bill because you don't want online casinos in your home.
    • Support H.R. 4411 because gambling addiction is growing among adolescents.



    Read a letter from all major sports leagues supporting H.R. 4411.



    Read a Question and Answer sheet about this Internet gambling bill.



    GREAT NEWS!!!
    The House Judiciary Committee approved the Internet Gambling Prohibition Act (H.R. 4777) by a bi-partisan vote of 25-11. Thanks for your help in urging committee members and your representatives to pass legislation that will keep casinos out of our living rooms and away from our families. Your work has helped the House Judiciary Committe make a wise decision.

    Now we must encourage our senators to approve of this important legislation without attaching any egregious amendments that might kill the Internet Gambling Prohibition Act. Interest in online gambling gains momentum daily, as the gambling lobby attempts to influence our D.C. officials to legalize and "regulate" Internet gambling. It's important that your senators hear from you - one of the citizens who elected him or her to office.

    Read more:

    H.R. 4777, sponsored by Rep. Goodlatte, would force U.S. financial institutions to cooperate with federal law enforcement authorities in closing illegal gambling sites based outside the U.S. Existing U.S. gambling entities, such as horse racing, sports betting (Nevada) and state lotteries are not the target of this legislation. The Federal Wire Act of 1961 would also be updated to include new wireless forms of communication. Language in this bill is specific for Internet gambling - not other forms of gambling.

    H.R. 4411, sponsored by Rep. Leach, would make it unlawful for credit-card companies to collect payments for transactions with online-gambling sites.

    The Unlawful Internet Gambling Enforcement Act of 2005 (H.R. 4411)

    To prevent the use of certain payment instruments, credit cards, and fund transfers for unlawful Internet gambling.


    Congressional Findings
    1. Internet gambling is primarily funded through personal use of payment system instruments, credit cards, and wire transfers.
    2. The National Gambling Impact Study Commission in 1999 recommended the passage of legislation to prohibit wire transfers to Internet gambling sites or the banks which represent such sites.
    3. Internet gambling is a growing cause of debt collection problems for insured depository institutions and the consumer credit industry.
    4. New mechanisms for enforcing gambling laws on the Internet are necessary because traditional law enforcement mechanisms are often inadequate for enforcing gambling prohibitions or regulations on the Internet, especially where such gambling crosses State or national borders. (Link to congressional findings.)
    All Major Sports Leagues And Associations Support This Act

    Read the NFL, NBA, MLB, NHL, NCAA Letter in Support of the Unlawful Internet Gambling Enforcement Act of 2005 (HR 4411)


    Read H.R. 4411

    Take Action: Two Steps

    The last major action on H.R. 4411 occurred on 11/18/2005, when it was referred to the House Committee on Financial Services. This Committee needs your encouragement, in the new 2006 legislative session, to support H.R. 4411 and stop illegal Internet gambling.


    Background

    On November 18, 2005, Congressman Jim Leach introduced legislation to prevent the use of credit cards for unlawful Internet gambling. The Unlawful Internet Gambling Enforcement Act of 2005 (H.R. 4411) does not change current law: nothing that is illegal will be made legal, and nothing that is legal will be made illegal. It simply provides law enforcement and private parties (such as credit card companies) with new enforcement tools that will prevent or interdict illegal Internet gambling transactions even when the websites are operated offshore. (Senator Jon Kyl is taking the lead on passing companion legislation in the Senate.)

    Over the last seven years, similar legislation has twice passed both the House and Senate, but has never made it to the President's desk. This must change in the 109th Congress. It's time to pass this bill and have it signed into law.


    HR 4411 Sponsors and Co-Sponsors

    Sponsor: Rep Leach, James A. [IA-2] (introduced 11/18/2005)

    List of Cosponsors (23)



    News Flash: US House panel clears anti-Internet gambling bill.

    “But I will tell you that probably the biggest proponents of this legislation are the professional sports organizations like the NFL and the NBA and Major League baseball, as well as the NCAA." –Senator Jon Kyl, testimony before the House of Representatives, 107th Congress, July 24, 2001

    Links To Related Articles And Research

     



    DOJ Positions On Internet Gambling





    Return to Gambling Homepage








    Last revised on November 1, 2006


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