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From the PPA Forum:
Thank you for contacting me regarding Internet gambling. It's good to hear from you.
In recent years, illegal gambling on the Internet has exploded into a
lucrative business that drains billions of dollars out of the U.S.
economy each year and costs tens of thousands of jobs. In addition,
illegal gambling serves as a vehicle for money laundering, undermines
families, and threatens the ability of states to enact and enforce
their own laws. Many of the illegal gambling sites attempt to avoid the
application of United States law by locating themselves off-shore and
out of our jurisdiction, providing a nearly undetectable harbor for
criminal enterprise. These illegal, off-shore gambling websites are
unlicensed, untaxed, and unregulated.
Gambling is currently illegal in the United States unless regulated by
the states. However, the development of the Internet has made gambling
easily accessible. The negative consequences of online gambling can be
as detrimental to the families and communities of addictive gamblers as
if a bricks and mortar casino was built right next door. Online
gambling results in addiction, bankruptcy, divorce, crime, and moral
decline just as with traditional forms of gambling, the costs of which
must ultimately be borne by society. In addition, the Federal Bureau of
Investigation and the Department of Justice have testified that
Internet gambling serves as a vehicle for money laundering activities,
and can be exploited by terrorists to launder money.
Under current federal law, it is unclear whether the primary federal
law dealing with gambling, the Wire Act, prohibits using the Internet
to operate a gambling business. In order to bring the current
prohibition against interstate gambling up to speed with the
development of the Internet, I introduced H.R. 4777, the Internet
Gambling Prohibition Act.
The Internet Gambling Prohibition Act would update and strengthen
current law in four main ways. First, it would update the Wire Act to
state clearly that the prohibition against interstate gambling includes
all forms of gambling such as online poker and slot machines, not just
sports-related bets. Additionally, it would update the Wire Act to
accommodate technological advances. The Wire Act was written years
before the Internet existed, so the Internet Gambling Prohibition Act
brings the law up to date with new technologies like the Internet and
other ways of communicating, such as wireless and satellite
capabilities. Third, my legislation would make it a criminal offense
for a gambling business to accept electronic funds transfers and other
forms of payment. This provision is meant to dry up the money supply
that keeps these illegal gambling businesses in operation. Finally, my
legislation would increase the maximum penalty for violations from two
to five years in prison.
While this legislation cracks down on illegal gambling across state
lines, it protects each State's authority to continue to authorize and
regulate gambling within their borders, as long as there are tight
controls in place to ensure that gambling does not extend beyond their
borders or to minors.
I introduced the Internet Gambling Prohibition Act on February 16,
2006, along with 115 bipartisan cosponsors. The Internet Gambling
Prohibition Act was reported out of the House Committee on the
Judiciary on May 25, 2006. This legislation was then merged with H.R.
4411, the Internet Gambling Prohibition and Enforcement Act, which was
introduced by Representative Jim Leach of Iowa. This combined
legislation passed the House by a vote of 317-93 on July 11, 2006, and
was subsequently referred to the Senate. Provisions of this legislation
were included in H.R. 4954, the Port Security Improvement Act of 2006.
The conference report on H.R. 4954 passed the House by a vote of 409-2,
and the Senate by unanimous consent, on September 30, 2006, and was
signed into law by the President on October 13, 2006.
You may also be interested to know that legislation has been introduced
to make Internet gambling legal. H.R. 2046, the Internet Gambling
Regulation and Enforcement Act, was introduced by Representative Barney
Frank of Massachusetts and would legalize and license Internet
gambling. This legislation was introduced on April 26, 2007, and was
referred to the House Committees on Financial Services and Energy and
Commerce. No further action has been taken.
In addition, H.R. 2610, the Skill Game Protection Act, was introduced
by Representative Robert Wexler of Florida and would specifically allow
certain Internet games, including poker. H.R. 2610 was introduced on
June 7, 2007, and was referred to the House Committees on Financial
Services, Judiciary, and Energy and Commerce. No further action has
been taken. Rest assured I will keep your views in mind as these pieces
of legislation are considered by Congress.
I appreciate you taking the time to contact me. I feel it is important
to keep an open line of communication so I can best serve the interests
of the 6th District. I hope you will continue to be in touch as the
110th Congress debates issues of importance to the United States.
Again, thanks for the benefit of your comments. Please feel free to contact me whenever I may be of assistance.
Sincerely,
Bob Goodlatte
Member of Congress
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