Internet Gambling: Irresponsible Policy
On October 13, 2006, Congress passed legislation to stop illegal Internet gambling in the U.S [Article VIII of the SAFE Port Act, known as the Unlawful Internet Gambling Enforcement Act (or UIGEA). Regulations were implemented on November 12, 2008. We must keep families safe from online predators that seek to exploit people for a profit.
Updated: 8-13-2009]
Summary of Bills to Watch
H.R.2266: Reasonable Prudence in Regulation Act
Sponsor: Barney Frank (D-MA)
Delays date that financial institutions were required to comply with the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) and stop payment to illegal, unlicensed Internet gambling operations. This bill delays compliance by another year.
H.R. 2266 - Full Text (PDF)
H.R.2267: Internet Gambling Regulation, Consumer Protection, and Enforcement Act )
Sponsor: Barney Frank (D-MA)
Legalizes Internet gambling, liscenses foreign and domestic online gambling operations and taxes online gambling revenues.
H.R. 2267 - Full Text (PDF)
H.R.2268: Internet Gambling Regulation and Tax Enforcement Act of 2009
Sponsor: Jim McDermott (D-WA)
Amends the Internal Revenue Code of 1986 to legalize and tax Internet gambling.
[No legislative text available for H.R. 2268 as of 5-8-2009]
H.R. 2268 - Full Text (PDF)S. 1597: A Bill to amend Title 31, United States Code ...
Sponsor: Sen. Robert Menendez (D-NJ)
Amends Title 31, USC, to legalize and tax Internet poker and other gambling that is predominantly skill. [This is supposedly a more comprehensive (and dangerous) bill than H.R. 2267 to legalize Internet gambling in the U.S.]
S. 1597 - Full Text not available on Thomas at time of posting (8-13-09)
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New Canadian Report Warns About Internet Gambling
Researchers Wood and Williams discovered that problem gambling was three to four times more prevalent among Internet gamblers versus non-internet gamblers in Canada, where online gambling is legal. Researchers also discuss the ongoing problem of underage children gambling online where this form of gambling has been legalized. The report gives a chart with countries and number of online gambling operations. A PDF link for the report is available. This report is an excellent way to learn what the U.S. could face if Internet gambling were available at every business, library, school and home.
[Wood, R.T. & Williams, R.J. (2008). Internet Gambling: Prevalence, Patterns, Problems, and Policy Options. Final Report prepared for the Ontario Problem Gambling Research Centre, Guelph, Ontario, CANADA. January 5, 2009. http://www.uleth.ca/dspace/handle/10133/693?mode=full (14 June 2009)]
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Sen. Menendez Joins Frank in Pushing Irresponsible Policy
On August 7, 2009, Senator Menendez introduced somewhat of a companion bill to Barney Frank's Internet gambling bill. Menendez had no co-sponsors. The Senate bill, S. 1597, appeared in full-text on the Poker Players Alliance site before it became available on any of the government sites, which further informs Americans as to who is writing this legislation. As of the time of this update (8-13-09), the text was still not available from government sites.
According to the Library of Congress, Thomas search engine, S.1597 ...
Title: A bill to amend title 31, United States Code, to provide for the licensing by the Secretary of the Treasury of Internet poker and other games that are predominantly of skill [empahsis added], to provide for consumer protections on the Internet, to enforce the tax code, and for other purposes.
It's no surprise that Sen. Menendez sponsored another Internet gambling bill, as he also did so in 2008 with S. 3616 .
Important Point: poker is NOT predominantly a game of skill ...
- Colorado District Court Judge rules that poker is gambling - not merely a game of "skill" [August 7, 2009]
- Judge Hartmann said chance was involved because a player is always subject to defeat when the next card is turned, regardless of skill or experience.... "The order in which the cards are dealt represents a variable that no level of skill can overcome." In the future, defendants will not be able to present the "skill" evidence when charged with a poker gambling crime.
- Also, for fun, let's just consider a few mathematical probablilities or "chances" involved with gambling success in poker:
- The Poker Players Alliance can falsely claim poker is predominantly "skill," but when there are 2.6 million different five-card hands that can be dealt, chance and probability easily trump the "skill" claim.
- Consider that the odds of being dealt a Royal Flush - any of four suits - is approximately one in 650,000. If "skill" determined what cards you were dealt, then it would be quite a different story. As it stands, "chance" is king in poker.
- Let's increase odds of success for the gambler by going for a flush (five cards, all same suit). What are the odds of success if the gambler has four spades and needs a fifth? About 9/48 - or 19 percent chance of success. Again, if the game is honest (no cheating, well-shuffled deck), there is no "skill" involved with the next card you are dealt. But you can decide whether to throw your money away against one-in-five odds. A "skilled" financial expert would invest his/her money elsewhere, instead of gambling it away on the unknown, slim "chance" of a win.
- Probabilities or "chances" change according to how many gamblers are at the table, game format (five-, seven-card, face up/down, etc), but the element of "chance" cannot be removed from poker. With a short tutorial given to most any late-elementary or early junior-high student, he or she could easily memorize or estimate probabilities.
- What you are dealt in poker is "chance," and what you bet against is probability of an unknown event happening - much different than having an element of control and skill.
- Gambling consists of three components:
- Wager (thing of value)
- Chance (risk, proability of win/loss)
- Pirze/Award (one person takes all other losing gamblers' money or things of value)
- A poker card game without any money or things of value being wagered, is merely a card game. But when money or items of value are bet, poker becomes gambling. And legal gambling in any state requires a license.
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[7-10-2009 - Archive]
Frank: Pushing Irresponsible and Fiscally Ignorant Policy
Rep. Barney Frank is at it again. He's serving as a finger puppet for foreign online gambling interests and pushing their agenda into U.S. policy. The UC Group Ltd (UK) and the Interactive Gaming Council (Canada) are funding the Poker Player's Alliance (PPA) with $3 million to lobby U.S. Congress Members hard in 2009. Barney Frank seems all too happy carrying the bill for them. Responsible, fiscally conservative citizens are needed to help educate their Congress Members about these dangerous, exploitive Internet gambling policies.
Third Circuit Court of Appeals Appears to Support Constitutionality of UIGEA (7-7-2009).
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Pro-Family Groups Take a Stand against Online Gambling
(CitzenLink.com, 6-11-2009)
Focus on the Family and Concerned Women for America (CWA) are among 20 pro-family groups calling on Congress to continue the enforcement of UIGEA and oppose the legalization of online gambling. ... Pro-family groups are asking the U.S. House to oppose two bills from Rep. Barney Frank, D-Mass.: H.R. 2266, which would give banks more time to comply with UIGEA; and H.R. 2267, which would legalize Internet gambling in the U.S
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Briefing on Rep. Frank's Bill, H.R. 2267:
Rep. Barney Frank's bill, H.R. 2267, would place the Treasury Department, and new Treasury Secretary Timothy Geithner, in a position to enforce our nation's criminal laws instead of the Department of Justice. This raises concerns with Geithner's tax code violations.
Frank claims that his bill exempts sports gambling. "No one will be betting on professional sports games," he told Congressional Quarterly [May 10, 2009].
But professional and amateur sports leagues read Frank's bill differently. Under the guise of not violating the Professional and Armature Sports Protection Act (PASPA), Frank's bill reverses the Federal Wire Act of 1961 and licenses currently illegal, online gambling operations to do business in the U.S.
We can speculate that the U.K.-based UC Group Ltd. likely helped craft the language in this bill. But just because Rep. Frank allowed himself to be a finger puppet for the foreign, online gambling lobby, it does not excuse him from understanding exactly what "his" legislation will – and will not – do. This bill places the integrity of sports and athletes in jeopardy, opening the doors wide for sports gambling. See the Sports Leagues letter opposing H.R. 2267.
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[11-18-2008 - Archive]
Treasury and Federal Reserve Finally Issue UIGEA Regulations
Families can celebrate the implementation of this law and its associated regulations. But beware of Barney Frank and foreign gambling interests, as they are not likely to give up their attempts to repeal UIGEA or legalize Internet gambling.
The Unlawful Internet Gambling Enforcement Act (UIGEA) was passed by Congress and signed by President Bush in October of 2006. The federal Treasury Department and the Board of Governors of the Federal Reserve were commissioned with the task of drafting regulations that upheld the intentions of UIGEA. Two years later, on November 12, 2008, the Treasury and Federal Reserve finally completed and implemented the UIGEA regulations.
Implementation of the UIGEA regulations now make the act effective and enable financial institutions to create systems for compliance. Effective dates (see p. 2 of final regulations):
- Final Rule issued - 12 November 2008
- Final Rule effective - 19 January 2009
- Financial Institution Compliance (one year) - 1 December 2009
Access Final Rule - UIGEA Regulations
Access H.R. 4954, SAFE Port Act of 2006 (see Title VIII - Unlawful Internet Gambling Enforcement)
While the U.S. Treasury and Federal Reserve completed UIGEA regulations, Rep. Barney Frank, congressional cronies and foreign online gambling interests tried to repeal UIGEA, stop completion of the regulations or otherwise derail UIGEA with eight separate bills (see below). But UIGEA and the regulation-drafting process was completed in spite of the pressure from foreign gambling interests.
UIGEA Opposition:
1) HR 2046 - Frank - Internet Gambling Regulation and Enforcement Act of 2007
2) HR 5767 - Frank/Paul (King amendment) Payments System Protection Act of 2008
3) HR 5523 - McDermott, D-WA - Internet Gambling Regulation and Tax Enforcement Act
4) HR 6501 - McDermott, D-WA (Larson-CT; Miller-CA) - Investing in Our Human Resources Act of 2008
5) HR 2140 - Berkley - Study Internet Gambling - Proper Response of U.S.
6) HR 2607 - McDermott - Internet Gambling Regulation and Tax Enforcement Act of 2007
7) HR 6870 – Frank (King) - Payments System Protection Act of 2008 (Passed out of House Committee on Financial Services, vote: 30 – 19)
8) S. 3616 – Sen. Robert Menendez (D-NJ) - Internet Skill Game Licensing and Control Act of 2008
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[10-8-2008 - Archive]
S. 3616 - Sen. Menendez (D-NJ) Bill To Legalize Online Gambling
Keep your powder dry for the 'lame duck' session ...
A bill to amend title 31, United States Code, to provide for the licensing of Internet skill game facilities, and for other purposes. Watch the Thomas Website for S. 3616 and future updates. Due to Congress' priorities in dealing with the national economic issues, S. 3616 could sneak up in the 'lame duck' session following the November 4th presidential elections. Be ready to call your elected officials in Congress if S. 3616 is considered or inserted into another bill. Also, be aware that Rep. Barney Frank's latest bill, HR 6870 , could go to the House floor for consideration (see following article).
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[9-19-2008 - Archive]
Dangerous Internet Bill Goes To House Floor
ALERT!!! URGENT ACTION:
Rep. Frank's bill, titled the Payments System Protection Act (HR 6870 ), passed the House Financial Services Committee by a vote of 30-19 on Tuesday, September 16, 2008. The bill will likely go to the House floor next week, so it's URGENT for citizens to contact your U.S. House Representative to request a "NO" vote against H.R. 6870. Use the CitizenLink Action Center to find and contact your Representative TODAY!
Background:
H.R. 6870 prevents the the completion of regulations for UIGEA and requires any interim regulations to block only sports betting. Additionally, it carves out numerous casino games such as poker, blackjack, Pai Gao, craps, roulette, slots, video poker, dog racing, Jai Alai, etc. The bill ultimately stalls UIGEA regulations from being completed, while attempting to remove opposition from the sports leagues.
Here is how the House Financial Services Committee voted (Red = Republican):
Yeas (30): Frank, Kanjorski, Waters, Gutierrez, Velazquez, Watt, Ackerman, Sherman, Moore (KS), Capuano, McCarthy (NY), Baca, Lynch, Cleaver, Bean, Moore (WI), Ellison, Klein (FL), Wilson (OH), Perlmutter, Murphy (CT), Foster, Cazayoux, Pryce (OH), King (NY), Biggert, Shays, Gerlach, McCarthy (CA), and Heller.
Nays (19): Meeks (NY), Scott (GA), Bachus, Castle, Royce, Lucas, LaTourette, Jones (NC), Capito, Hensarling, Garrett, Brown-Waite, Barrett, Pearce, Davis (KY), Campbell, Putnam, Bachmann, and Roskam.
Not Voting (21): Maloney, Hinojosa, Clay, Miller, Green, Davis, Hodes, Mahoney, Donnelly, Carson, Speier, Childers, Paul, Manzullo, Miller (CA), Feeney, Neugebauer, Price (GA), McHenry, Marchant, and McCotter.
Citizens may want to remind House Republicans that the Republican/GOP Platform for 2008 continues to uphold prohibition of Internet gambling, on page 47, with the following statement: "Internet Gambling: Millions of Americans suffer from problem or pathological gambling that can destroy families. We support the law prohibiting gambling over the Internet." (The referenced "law" is the Unlawful Internet Gambling Enforcement Act of 2006 or Article VIII of the Safe Port Act. See the article below for House Financial Services Committee contact information. Access H.R. 4954, SAFE Port Act of 2006 )
U.S citizens need to be aware that UIGEA is not a big-brother situation, like the foreign-front lobby, Poker Players Alliance, touts. UIGEA does not prohibit individuals' freedom to gamble legally; rather, it enforces laws that prohibit illegal forms of gambling, which includes Internet gambling. UIGEA empowers citizens within a state to make their own decision about legalizing Internet gambling within state borders. Meanwhile, UIGEA serves to protect state laws that require all legal forms of gambling to be licensed. Rogue, foreign, online casinos are not licensed to legally operate within any U.S. state at this time, yet some continue to mock U.S laws and take money from our states and our nation.
UIGEA falls well within the federal government's responsibility to protect states from foreign threats. Nowhere inside the U.S. is Internet gambling currently legal. In fact, 10 states have expressly outlawed Internet gambling (Illinois, Indiana, Louisiana, Michigan, Nevada, New Jersey, New York, Oregon, South Dakota, and Washington). All states require gambling facilities to have state-approved licenses to legally operate gambling within state borders. Thus, foreign gambling operations are illegally operating within the U.S. if they do not possess state licenses. See the Internet Gambling Fact Booklet for more information about UIGEA.
Rep. Barney Frank said, "If an adult in the country, with his or her own money, wants to engage in an activity that harms no one [emphasis added], how dare we prohibit it?"
Frank's statement (philosophy) is dangerous on several accounts:
- Writing policy based on the desires and self-interests of adults only - What about children and adolescents, who compose more than a quarter of the entire U.S. population? How will this affect future generations? Countries struggle with youth online-gambling addictions where Internet gambling has been legalized. Just because Barney Frank has no children of his own, this does not exempt him from the responsibility of preserving our nation's future. One should never create policy that benefits adults at the expense of children. All policy decisions need to have the wellbeing of people at their core. Frank's effort to bring thousands of online casinos into millions of homes jeopardizes the wellbeing of adults and children. Ultimately, what Barney Frank and friends are pushing is a national casino.
- This policy is driven by foreign, online gambling operators who derive profits by expanding their predatory vice - Isn't it correct that unless citizens within a state vote to legalize gambling that they should not be assaulted by rogue, foreign online gambling operations in their own homes? Why should the U.K., Cost Rica, et al., dictate federal U.S. policy when the states have not yet approved any form of casino Internet gambling?
- "...engage in an activity that harms no one ..." - Either Rep. Frank is extremely naive (doubtful) or intentionally ignorant of the harms gambling brings to communities and states. And now he blindly wants to bring that harm potential into every home with a computer and Internet access, because he doesn't have a problem with it. It's comforting to know Frank is thinking about himself, isn't it? According to the federal NGISC final report, there are approximately 15 million problem and pathological gamblers in the U.S. alone (imagine filling 214 NFL football stadiums with these people). Gambling causes tremendous harm, and any policy that expands this vice should not be supported by officials elected to serve and protect the wellbeing the citizens they represent.
- Individual adults should be free to do anything they want - If only all adults were virtuous, moral, upright, responsible, interested in the wellbeing of others, sacrificial givers, possessed pure motives, were responsible and of good character. If only we did not have people who desired corrupt power, wanted to exploit women and children, cared more for themselves and less for others, wanted to murder people, etc, etc. You get the picture. Laws are necessary because there are always bad people who are waiting to exploit and harm other people. Humanity is more likely to favor selfish gain than sacrificial giving for others' wellbeing. It's not right, but it's the sad truth about human nature, especially as our society continues to travel away from truth, absolutes, virtues, character and God. Our Declaration of Independence reads, "We hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness." Within our Declaration is a basic assumption that no harm will be done to others in the pursuit of that happiness. Also, the Founding Fathers based this on the collective assumption that we would have virtuous and moral leadears. Virtue, a moral code of conduct and belief in a Creator (God) were to compose a common national foundation. Unfortunately, we must make quite the opposite assumption about society today. It's worth noting that Internet gambling has a short but rich history of scandal, corruption and crime.
- "...how dare we prohibit it" - How dare we NOT prohibit turning every home into a casino, especially if it's within our power to stop this predatory vice from destroying more lives and families. Albert Einstein once said, "The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing." We have more than 800 casinos and thousands more lottery outlets in all but two states - Hawaii and Utah. It's hard for me to believe that gamblers do not have enough opportunities available. Homes are for people and families, not casinos.
There are supposedly one million "Americans" that want to gamble online (according to the foreign-funded lobbying group, Poker Player's Alliance), but what about the 15 million or more people fighting gambling addiction? What about their families and an estimated 12 to 17 other people negatively affected by their addiction? With more accessibility and availability to gambling, addiction increases. Rep. Frank needs to represent American families on this issue, not foreign Internet casino operators and adult-only special interests.
If Reps. Frank, King, Wexler, McDermott and Senator Menendez are willing to gamble with our families by introducing laws that enable predatory adults to access our homes and children for "legalized" exploitation, then it's time to replace them with leaders of character, virute and integrity who will create policy to defend and strengthen - not assault - our families.
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[9-11-2008 - Archive]
Dogged Frank Punting To Legalize Internet Gambling AGAIN!
ACTION:
Call your Representative today and urge him or her to oppose Barney Frank's continuing efforts to push predatory Internet casinos into your home. Rep. Frank will submit yet another proposal to legalize Internet gambling this coming Tuesday (9/16/08) in the House Financial Services Committee.
House Financial Services Committee (Members Page)
Democrats: Ph: Majority – (202) 225-4247 - FAX: (202) 225-6952
Republicans: Ph: Minority – (202) 225-7502 - FAX: (202) 226-4301
E-mail Form: http://financialservices.house.gov/contact.html
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Rep. Frank's bill will make online sports betting illegal, while allowing casinos, poker, black jack, slots, etc, to operate legally in the U.S. This bill gets the NFL and sports associations on more neutral ground (less opposition), but it holds the same devastating potential to destroy families in their own homes. How much money and time has Rep. Frank spent lobbying for foreign gambling interests and a predatory vice that will destroy countless families in our nation? Is online gambling his priority in a time when the U.S. economy cannot suffer the weight of more gambling-induced destabilization?
John Adams, our second U.S. President, once said, "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of the facts and evidence."
Regardless of Rep. Frank's determination to legalize Internet gambling and to punt for off-shore, foreign Internet gambling special interests, the facts remain:
Legalized Internet gambling will destroy many marriages and families through a potentially massive increase in gambling addictions.
• Legalizing or "regulating" Internet gambling will not lessen the degree of illegal gambling that occurs, but it will drastically increase accessibility, availability, speed and anonymity of gambling: the perfect conditions to create a storm of gambling addiction.
• Internet gambling is one of the most invasive, addictive and destructive forms of gambling ever in history.
• Citizens lose their vote to oppose gambling if they allow unwelcome casinos into their homes through the Internet.
• Online gambling entities have a growing history of corruption.
• The Interactive Gaming Council (based in Canada), off-shore casino operators (Pirates of the Caribbean), the European Union and a large concentration of online operators in the UK and "sovereign" Gibraltar (International Interactive Alliance) are attempting to force their liberal gambling policies on U.S. families through bending ears in the U.S. Congress. Citizens need to protect their families and tell these foreign predators to leave by keeping our borders safe by keeping the Unlawful Internet Gambling Enforcement Act of 2006 intact. Urge your Senators and Representatives to close the door on this predatory industry.
• Compare one million members of the Poker Players Alliance to 15 million problem and pathological gamblers in the U.S. (NGISC Report, p. 4-1). And each addicted gambler negatively impacts 10 to 17 other people – work, family and government.
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[8-26-2008 - Archive]
An early press-release headline in the Congressional Quarterly read: "GOP Platform Committee Drops Prohibition On Internet Gambling." Today's headline for the same article reads: "GOP Platform Committee Re-Inserts Prohibition On Internet Gambling," after well-funded, foreign-backed, online-gambling lobbyists from Poker Players Alliance failed in their attempt to remove "Internet gambling prohibition" language from the GOP platform.
Showing your hand too early is often a fatal move in poker. Indeed, it appears as if the odds are better for foreign online casinos - backers of the Poker Players Alliance - if they continue to mock U.S. law and exploit online gamblers for money, rather than gamble themselves. But even foreign online operators that continue enabling U.S. citizens to illegally gamble online face long odds. They are subject to arrest in the U.S. for violating the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). Regardless the potential of getting burned - or put in jail, some foreign operators, such as Cake Poker and WassPoker, persist in violation of UIGEA.
Tom McClusky, Family Research Council's Vice President, said, "The Pokers Players Alliance showed their hand well too early by sending out premature, inaccurate press releases. The Republican Platform Committee should be proud that they have stood up for the law and families."
Meanwhile, the U.S.-based Gambling Cartel continues to embed itself more deeply into the GOP's structure, but pro-family Republicans opposing Internet gambling still remain in the majority. Sufficient reason exists for growing concern about the gambling lobby's influence on government policy.
American Gaming Association's president and chief lobbyist, Frank Fahrenkopf (former leader in the Republican National Committee or RNC) is an ever-virulent influence in Washington, D.C. And the recent appointment of commercial gambling mogul and founder of Las Vegas Sands, Sheldon G. Adelson, to serve on the Bush Administration is troubling. Adelson represents a diverse and somewhat contrasting mixture of interests ranging from pro-Israel / Jewish issues, to a conservative group known as Freedom's Watch, to the highly exploitive trade of gambling expansion. Sheldon Adelson is also known for his large contributions to the Republican Party.
Gambling is not a partisan issue. It buys favor from both major parties. Overall gambling contributions to the Democratic party will likely top the highest record in 2002, while total contributions to the Republican party are declining since 2002. The Center for Responsive Politics documents political contributions on their Open Secrets Web site, where viewers can see trends in gambling contributions. Viewers can also see which gambling entities gave to both the Democratic and Republican parties for 2008. So far, of the Political Action Committee (PAC) contributions, about 65 percent of "Casinos/Gambling" money has gone to Democrats, while 35 percent has gone to Republicans in 2008.
The future of gambling literally rests in the hands of state and federal policy makers: therefore, political involvement will always be a component of gambling's existence. But parents are increasingly concerned about legal and illegal Internet sites soliciting their children with pornography and gambling. If voters have their say, illegal Internet gambling and other forms of legal gambling will most certainly experience decline.
At least for the 2008 election cycle, the GOP Platform continues to include language that protects families and children from illegal, foreign, predatory, online casino operations.
“We all know how hours can slip by when we’re in front of the computer,” one internet gambler writes, “but online gambling can feel like a total time slip – especially as the tables are open 24 hours. And I know it sounds ridiculous, but the ‘virtual’ experience makes you somehow forget that you’re playing for hard cash.”
[Source: Rhodri Marsden, "Cyberclinic: 'Is it too easy to run up gambling debts online?'" Belfast Telegraph online, 8 August 2007, http://www.belfasttelegraph.co.uk/news/technology/article2844105.ece (8 August 2007)]
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Articles and Research:
Wood, R.T. & Williams, R.J. (2008). Internet Gambling: Prevalence, Patterns, Problems, and Policy Options. Final Report prepared for the Ontario Problem Gambling Research Centre, Guelph, Ontario, CANADA. January 5, 2009. http://www.uleth.ca/dspace/handle/10133/693?mode=full (14 June 2009)]
High Lights:
• Excellent tables listing countries, number of online gambling operations, revenues, regulations, concerns, etc.
• The prevalence of problem gambling is 3 to 4 times higher in Internet gamblers compared to Non-Internet gamblers. Having problems with gambling is one of the features that best predicts someone is an Internet gambler in both the Canadian and International data sets. The past-year adult prevalence rate of moderate and severe problem gambling in Canada in 2006/2007 is 3.2%, with an inter-provincial range of 1.7% in Quebec to 6.0% in Nova Scotia. The prevalence rate of problem gambling in Quebec is significantly lower than Nova Scotia (6.0%) and British Columbia (4.4%).
• There are several variables that statistically predict whether someone is an Internet problem gambler. In order of importance, these are: gambling on a greater number of gambling formats; a higher gambling expenditure (Internet problem gamblers accounted for 41.3% of all reported gambling losses for the Canadian data set and 27.0% of all reported losses for the International data set); having mental health problems; having a family history of problem gambling ...
• Only about half of Internet problem gamblers report there is a specific type of gambling that contributed to their problems more than others. Among the Canadian sample, these were poker (31.3%), slot machines (12.5%), VLTs (12.5%), and roulette (12.5%).
• Canadian Internet gamblers are predominately male (82.4%)
• In Canada, student status is a variable statistically predictive of Internet gambling. Being retired, on sick leave/maternity leave, or unemployed is significantly more characteristic of Canadian Internet gamblers as compared to Internet gamblers from other countries.
• The most common marital status of Canadian Internet gamblers is being single (49.0%), and this marital category is statistically predictive of Internet gambling.
• They have higher household incomes ($74,600) as well as an average household debt ($78,056), that is about $20,000 higher than Non-Internet gamblers.
• All age groups are involved in Internet gambling, but it is more common in younger people (average age of 35.5).
• Worldwide, including Canada, poker is the most popular online form of gambling.
• Canadian Internet gamblers have relatively high past month rates of substance use (39% for tobacco and 23.3% for illicit drugs), and use of illicit drugs is a statistically associated with Internet gambling.
• International Internet gamblers have high past month rates of substance use (44.3% for tobacco and 11.7% for illicit drugs). Any type of substance use is a significant predictor of a person being an Internet gambler.
• Both Canadian and International Internet gamblers overwhelmingly identified the 24 hour availability and convenience of Internet gambling to be its main advantage. Secondary advantages include a better game experience; more physically comfortable; lack of crowds; anonymity; better payout rates; less smoke; and being able to smoke.
Robert T. Wood, Robert J. Williams, " Problem gambling on the internet: implications for internet gambling policy in North America," New Media & Society, 2007, Vol. 9, No. 3, pp. 520-542. [Relationship between Internet gambling and the formation of gamlbing addictions]
High Lights:
• Past studies predict that internet gamblers are especially at risk for developing gambling problems and that a substantial proportion of them already can be properly classified as problem gamblers ...
• This article investigates this issue using data collected from an internet-based survey administered to 1920 American, Canadian and international internet gamblers. ...
• Confirming predictions of a relationship between internet gambling and problem gambling, it finds that 42.7 percent of the internet gamblers in the sample can be classified as problem gamblers. ...
• ... studies have shown that underage gamblers use [Web casino] free-play facilities extensively, and then run into trouble when they reach gambling age and play for real money. ...
• Half of North American high school and post-secondary students have played on free-play online gambling sites ...
• The Kahnawake First Nation online gambling licensing jurisdiction near Montreal is mentioned prominently in the article ... despite Canadian restrictions confining gambling to provincially approved operators [Kahnawake in violation] ... host to some 300 to 400 Internet gambling websites. ... "The Mohawks there are so militant in advancing their sovereignty issues ... trying to be as low-key about it as they can because they know they'll get prosecuted ..."
• "The entire trend towards Internet gambling is a dangerous one," he [Williams] says, noting that the rates of problem gambling are much higher with online gambling.
• ... cautions for governments to heed when crafting internet gambling policies.
Brody Mullins, "Biden's Son Quits Lobbying Business," Wall Street Journal, 12 September 2008. [Joe Biden's son a lobbyist for foreign, online gambling operator]
High Lights:
• Hunter Biden, the lobbyist son of Joe Biden, has quit the business. In a letter released today, Biden told Congress that "I no longer expect to act as a federal lobbyist." ...
• Just before his father was added to the Democratic ticket, he signed a lucrative deal to help expand Internet gaming. ...
• Hunter Biden was charged with lobbying House lawmakers on behalf of a law firm that represents online gambling magnate Russ DeLeon. Listed as one of Forbes’ richest Americans, DeLeon runs the popular online gambling site PartyGaming.com. ...
• Republicans approved legislation in 2006 to outlaw Internet gaming, but Democrats are trying to overturn the ban. ...
• According to a form filled out by Hunter Biden just a month before the Democratic convention, Biden’s firm was slated to earn $200,000 a year by lobbying for PartyGaming. ...
Mike Brunker, "Poker site cheating plot a high-stakes whodunit: $75 million claim filed against Canadian software firm with murky pedigree," MSNBC Interactive online, 18 September 2008. [Internet gambling's potential for corruption and crime]
High Lights:
• Allegations that cheaters manipulated the software powering a leading Internet poker site so they could see their opponents' hole cards have triggered a $75 million claim against a Canadian company ...
• The alleged subterfuge on UltimateBet.com — one of the 10 top poker sites — is the biggest known case of fraud targeting an Internet gambling site and its customers ...
• It is similar to a case of cheating that occurred last year on UltimateBet’s sister site, AbsolutePoker.com, but this time the thieves ran the scheme for far longer ...
• The unprecedented claim is just the latest twist in a slowly unfolding whodunit that began more than nine months ago when poker players posted comments about suspicious play on UltimateBet. ...
• "I know there are thousands of people who aren’t going to get reimbursed." ...
• Adding to the sense of mistrust is the fact that Tokwiro Enterprises apparently is owned by Joseph Norton, the former grand chief of the Kahnawake Mohawks, who helped establish the territory as North America’s only bastion of Internet gambling. ...
• The sudden sale of Excapsa’s assets for $130 million, with $120 million deferred, was prompted by President Bush’s looming signature of the so-called Safe Port Act [Article VIII contains UIGEA language], which contained a provision barring U.S. banks and other financial institutions from doing business with Internet gambling operators. ...
• Kahnawake Gaming Commission [KGC]... On July 27, the KGC announced it had asked Frank Catania, a former New Jersey state gaming regulator, to conduct "a full forensic audit/investigation" … [KGC] has licensed more than 470 gambling Web sites operated by 55 different operators. ...
"Internet bookie bwin loses German court case," Rueters, 11 September 2008.[Internet gambling operator refuses to comply with German ban on Internet gambling]
High Lights:
• Internet bookmaker bwin.com has lost a regional court case in the aftermath of Germany's crackdown on online betting
• The Cologne court rejected the suspension request [that would lift Germany's ban on Internet gambling] ... Bwin now faces fines if it does not oblige the ban ...
• Bwin confirmed the court decision but said it would continue to offer its betting and gambling services despite the ruling. It reiterated its view that Germany's ban on Internet gambling violated European Union rules and it will continue to challenge it in courts. ...
Nick Mathiason, "Gaming firms drag heels over aid for addicts," The Guardian (U.K.), 7 September 2008. [Online gambling sites cause addiction, not willing to pay or take responsibility for harm caused]
High Lights:
• Britain's first National Problem Gambling Clinic will open next Monday. It has been a long time coming. ...
• ... depression and drug abuse often associated with the problem [gambling], which affects an estimated 300,000 Britons. Of these, 40 per cent have suicidal tendencies. ...
• ... treatment specialists repeatedly complained of a lack of funding to research the growing problems associated with spread betting, fixed-odds betting terminals, and internet gambling, and its effect on youngsters and families. ...
• How much should bookmakers, casino bosses, internet gambling sites, bingo operators and arcade owners contribute to clear up problems associated with the industry?
• The most serious problem, however, is that many internet companies, which are based in tax havens such as Gibraltar and the Cayman Isles, refuse to hand over cash.
More Information
·
See the Internet Gambling Fact Booklet - UIGEA·
Internet Gambling Legislation Passed: A Victory For Families·
SAFE Port Act text (Article VIII contains the Unlawful Internet Gambling Enforcement - or UIGEA - text)·
H.R. 4411 Vote Record (Prohibit online gambling in U.S.)·
H.R. 4954 Vote Record (Prohibit online gambling in U.S.)·
H.R. 2046 Internet Gambling Regulation and Enforcement Act (Barney Frank bill to legalize online gambling in the U.S.)·
H.R. 2610 Skill Game Protection Act (Rep. Wexler's bill, claiming that poker is a game of "skill" and should be legalized online)·
H.R. 2140 Internet Gambling Study Bill (Rep. Berkley, D-NV, sponsored a bill to study tax model and various economic aspects of Internet gambling)·
H.R. 2607 Internet Gambling Regulation and Tax Enforcement Act of 2007 (Rep. McDermott, D-WA, sponsored a bill to "regulate" or legalize online gambling)·
Gambling interests ($$$) lobbying Congress 2006 (See Internet interests like YouBet.com, SportingBet, Interactive ... international, etc)·
International Interactive Alliance ($1,780,000 lobbying in 2006)·
Link to the entire SAFE Port Act of 2006 (see Title VIII for Internet gambling legislation)·
Read the letter written by professional and amateur sports organizations encouraging strong regulations against Internet gambling·
CRS Report for Congress - Internet Gambling: Two Approaches in the 109th Congress; RS22418 [Updated July 31, 2006]·
Internet Gambling: The 'Perfect Storm' of Harm·
Facts compiled by Senator Jon Kyl's office·
John W. Kindt, HYPERLINK "http://citizenlink.org/pdfs/fosi/gambling/HarvardU_Gamb_Terrorism_2-%2010-2007.pdf" Gambling With Terrorism: Gambling’s Strategic Socio-Economic Threat To National Security·
Testimony and Statement of Professor John Warren Kindt, Univ. Ill., Internet Gambling Prohibition Act of 2006: Hearing on H.R. 4777 Before the U.S. House of Representatives Subcomm. On Crime, Terrorism, and Homeland Security·
ohn W. Kindt & Stephen W. Joy, Internet Gambling and the Destabilization of National and International Economies: Time for a Comprehensive Ban on Gambling Over the World Wide Web·
'Clean' NCAA Playoff Games Sought [USA Today, March 27, 2007] What Payoff Can You Expect From Gambling? (PDF print tri-fold handout)Return to the Gambling Information homepage.
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