The US congress gets its way on
Internet gambling, and it could be...
GAME OVER
Internet gambling, and it could be...
GAME OVER
| Unlawful Internet Gambling Enforcement Act New Poker Laws The US Congress has passed legislation that will prevent online gamblers from using their credit cards and to block access to gambling sites. This law is meant to clarify past legislation that all online gambling is illegal. |
The US House of Representatives has passed legislation that will prevent online
gamblers from using their credit cards and to block access to gambling sites.
This law is meant to clarify past legislation that all online gambling is illegal.
The House voted and passed the bill. The result would essentially block
Internet access to gambling sites by working with the service providers.
Supporters of the measure argue that Internet betting can be addictive and can
lead people to lose their savings. Representative Jim Leach (R-Iowa) said the
problem is particularly acute for young people who are frequently on the
Internet. "Never before has it been so easy to lose so much money so quickly
at such a young age."
Reps. Bob Goodlatte (R-Va.) and Jim Leach sponsored the bill. They successfully
beat back an amendment to strip out exemptions for the horse and state
lotteries. This will essentially make it illegal to gamble online unless the state is
involved in the transaction.
I find it just amazing that supporters of the bill actually think that the public
would believe that the legislation is to curb the losses that may occur due to
minors gambling online. Under the current legislation, it would still be alright for
the public to gamble on horses and lotteries, which are both run by the state.
The truth is that the states have been trying for many years to try to collect tax
revenues from online commerce with varying degrees of success. In New York
state, there is a line on the NY State Individual Tax Return where you are to
indicate the amount of "online" purchases that were made for the year, so they
can charge you tax on these purchases that you did not pay at the time of sale.
The states know that they can not touch the revenues collected by online
gambling sites simply because they are located outside of their jurisdiction. The
only option is for them to make it illegal to participate in such activities.
Industry analysts predict that revenue from global gambling on the Internet will
approach $24.5 billion by 2010. The states are well aware of the vast sums of
tax revenues that they are losing out on.
There is not much support for the legislation in the Senate, so hopefully the bill
dies a quick death. Republican leaders have not considered the measure a high
priority.
Rep. Shelley Berkley (D-Nev.) pushed for removal of the exemptions. She said it
was unfair to allow lotteries and Internet betting on horse racing to flourish
while cracking down on casino and card games like poker. Supporters of
Internet gambling agreed. They call it a prohibition. It is really congress picking
winners and losers," said Michael Bolcerek, president of the Poker Players
Alliance, a San Francisco based group that opposes the bill. It seems to me that
the winners would be the state coffers, and the losers would be the millions of
poker fans in the US who like to play online poker. I would not be surprised to
see the states offering their own poker rooms where you would be able to
"legally" gamble online, as they collect the rake from each hand.
I have viewed this current bill, and previous bills dealing with online gambling.
You can view parts of the bill by following the Library of Congress links below.
Unlawful Internet Gambling Enforcement Act of 2006 - [H.R.4411.RH]
Unlawful Internet Gambling Enforcement Act of 2005 - [H.R.4411.IH]
Internet Gambling Prohibition Act - [H.R.4777.IH]
Restoring Trust in Government Act - [H.R.4696.IH]
Internet Gambling Prohibition and Enforcement Act - [H.R.4411.EH]
gamblers from using their credit cards and to block access to gambling sites.
This law is meant to clarify past legislation that all online gambling is illegal.
The House voted and passed the bill. The result would essentially block
Internet access to gambling sites by working with the service providers.
Supporters of the measure argue that Internet betting can be addictive and can
lead people to lose their savings. Representative Jim Leach (R-Iowa) said the
problem is particularly acute for young people who are frequently on the
Internet. "Never before has it been so easy to lose so much money so quickly
at such a young age."
Reps. Bob Goodlatte (R-Va.) and Jim Leach sponsored the bill. They successfully
beat back an amendment to strip out exemptions for the horse and state
lotteries. This will essentially make it illegal to gamble online unless the state is
involved in the transaction.
I find it just amazing that supporters of the bill actually think that the public
would believe that the legislation is to curb the losses that may occur due to
minors gambling online. Under the current legislation, it would still be alright for
the public to gamble on horses and lotteries, which are both run by the state.
The truth is that the states have been trying for many years to try to collect tax
revenues from online commerce with varying degrees of success. In New York
state, there is a line on the NY State Individual Tax Return where you are to
indicate the amount of "online" purchases that were made for the year, so they
can charge you tax on these purchases that you did not pay at the time of sale.
The states know that they can not touch the revenues collected by online
gambling sites simply because they are located outside of their jurisdiction. The
only option is for them to make it illegal to participate in such activities.
Industry analysts predict that revenue from global gambling on the Internet will
approach $24.5 billion by 2010. The states are well aware of the vast sums of
tax revenues that they are losing out on.
There is not much support for the legislation in the Senate, so hopefully the bill
dies a quick death. Republican leaders have not considered the measure a high
priority.
Rep. Shelley Berkley (D-Nev.) pushed for removal of the exemptions. She said it
was unfair to allow lotteries and Internet betting on horse racing to flourish
while cracking down on casino and card games like poker. Supporters of
Internet gambling agreed. They call it a prohibition. It is really congress picking
winners and losers," said Michael Bolcerek, president of the Poker Players
Alliance, a San Francisco based group that opposes the bill. It seems to me that
the winners would be the state coffers, and the losers would be the millions of
poker fans in the US who like to play online poker. I would not be surprised to
see the states offering their own poker rooms where you would be able to
"legally" gamble online, as they collect the rake from each hand.
I have viewed this current bill, and previous bills dealing with online gambling.
You can view parts of the bill by following the Library of Congress links below.
Unlawful Internet Gambling Enforcement Act of 2006 - [H.R.4411.RH]
Unlawful Internet Gambling Enforcement Act of 2005 - [H.R.4411.IH]
Internet Gambling Prohibition Act - [H.R.4777.IH]
Restoring Trust in Government Act - [H.R.4696.IH]
Internet Gambling Prohibition and Enforcement Act - [H.R.4411.EH]
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