In a rushed, crowded schedule that left little room for debate, the
merged Goodlatte/Leach Bill HR 4411 survived various amendments designed
to defeat its carve-outs on horse racing, lotteries and fantasy sports
and was passed 317 to 93 today (Tuesday).
The legislation is aimed at curbing selected sectors of Internet gambling
by blocking the use of credit cards and bank transfers for online
wagering and clarifying the Wire Act. It also carries the threat of
interference with ISPs.
Having passed the House, the Bill next moves to a busy Senate, where
similar measures in the past have failed, and it will likely face
a more strenuous and detailed debate. Assuming it gets on to the crowded
schedule at all, if it is not passed by the time the legislative season
ends later this year, the whole process will have to be started again.
Predictably the supporters of the Bill emphasized the potential dangers
of addiction, money laundering and use by minors in defending it's
provisions. In a roller coaster debate amendments that sought to extend
the ban to all forms of internet gambling including the hitherto exempted
horse racing, lotteries and fantasy sports, were finally defeated
after postponements.
The Associated Press reported that House Speaker Dennis Hastert said:
"We must be wary of illegal gambling sites that offer fronts
to criminals for money laundering, drug trafficking and terrorist
financing.
"Internet-based companies must abide by US regulations that protect
our children, citizens and the integrity of American business. The
Internet Gambling Prohibition and Enforcement Act will do just that.
It seeks to protect our children from gambling sites at home, keep
our hard-earned money in the bank, and put the criminals that seek
to take advantage of our family earnings in jail."
Representative Bob Goodlatte said the bill could curb the booming
industry of offshore websites accepting bets and wagers from persons
in the United States.
"Because these businesses are located offshore, they usually
cannot be reached through state or federal law enforcement,"
Goodlatte said. Easy access to Internet gambling websites and lack
of law enforcement give the US public a misimpression that Internet
gambling is not illegal."
If the Bill makes it into law, the U.S. Justice Department would have
authority to block money transfers to offshore gaming sites and seek
injunctions against persons who foster illegal gambling via the Internet.
Authorities would be allowed to work with Internet service providers,
to block access to gambling Web sites.
Representative Barney Frank, a Massachusetts Democrat, said the bill
restricted individual rights.
"What kind of social, cultural authoritarianism are we
practicing here?'' Frank said during debate. "The
fundamental principle of the autonomy of the individual is at stake
today.''
U.S. casino operators including MGM Mirage and Harrah's Entertainment
Inc. have urged Congress to consider legalizing and regulating online
gambling.
Representative Shelley Berkley, a Nevada Democrat, called Goodlatte
a hypocrite because the bill wouldn't block online gambling on horseracing,
which is legal under a separate U.S. statute governing the horseracing
industry.
"He made a deal with the horseracing industry to exempt
them from this bill,'' Berkley said. "And why is
that? Because if he didn't, they would fight this tooth and nail.''