Washington, DC: Representatives Bob Goodlatte (R-VA) and Jim Leach (R-IA) announce a merged approach to combat Internet gambling that they expect to debate on the House Floor next week.  Bills to upgrade enforcement of Internet gambling laws have been introduced over four Congresses by Reps. Goodlatte and Leach; H.R. 4411, the Internet Gambling Prohibition and Enforcement Act, represents a merger of the two complementary approaches.

This measure would create strong tools to help federal and state governments enforce existing gambling prohibitions; it would crack down on illegal gambling by clarifying that the Wire Act covers all forms of interstate gambling and account for new technologies.  It has been designed to cut the money flow from gamblers to Internet gambling sites.  Specifically, the bill would enhance criminal penalties for gambling businesses settling Internet wagers with financial instruments such as credit cards, checks, or fund transfers.  It would also require payment systems to establish procedures for blocking these transactions. 

“The Internet has transformed the way we communicate, how we work, the things we buy and the way we buy them.  The expansion of the Internet has created thousands of new businesses, tens of thousands of new jobs and made our lives more efficient.  However, some unfortunate challenges, such as illegal gambling on the Internet, have accompanied this explosive growth and it is time to bring an end to these illegal activities,” Goodlatte said.
 
“Gambling on the Internet has become an extremely lucrative business.  These offshore, fly-by-night Internet gambling operators are unlicensed, untaxed and unregulated and are sucking billions of dollars out of the United States.  Numerous studies have charted the explosive growth of this industry, both by the increases in gambling websites available, and via industry revenues.  Internet gambling is now estimated to be a $12 billion industry, with approximately $6 billion coming from bettors based in the U.S.  It has been reported that there are as many as 2,300 gambling sites,” Goodlatte added.

“Gambling on Internet websites is illegal throughout the United States.  No state has authorized this type of gambling, and Federal criminal laws support the enforcement of state gambling laws,” Leach said. 
“Nevertheless, there is a booming industry of offshore websites accepting bets and wagers from persons located in the United States.  Because these businesses are located offshore, they usually cannot be reached through state or federal law enforcement.  Easy access to Internet gambling websites and lack of law enforcement give the U.S. public a misimpression that Internet gambling is not illegal.  This encourages widespread gambling by minors and young adults, and addiction-forming behavior by gamblers of all ages,” Leach said.

The bill is supported by anti-gambling organizations and many parts of the financial services community.  The NCAA and the principal professional sports leagues support the measure as do many pro-family and religious groups, ranging from the Family Research Council to the United Methodist Church, the Southern Baptist Convention and other members of the National Council of Churches.

This legislation blends text introduced by Leach, which passed the Financial Services Committee on March 15 and the Judiciary Committee on May 25, as well language introduced by Goodlatte which passed the Judiciary Committee on May 25.