The U.S. House Financial Services Committee passed the Unlawful Internet Gambling Enforcement Act (H.R. 4411) on Wednesday, March 8, by a voice vote, just as people across the country were placing bets on the collegiate men’s basketball tournament in record numbers, especially online.
The bill will now be considered by the entire House.
More than $2 billion in online bets are expected to be made during the National Collegiate Athletic Association’s (NCAA’s) tournament, according to the San Jose Mercury News. Many of these bets will be placed by young men who are either already addicted to or just being introduced to gambling.
Sponsored by Rep. Jim Leach (R-Iowa), H.R. 4411 would prohibit a gambling business from accepting credit cards, checks, wire and electronic funds transfers in illegal gambling transactions. It would provide law enforcement and private parties, such as credit card companies, with tools to enable them to prevent or interdict illegal Internet gambling transactions in the U.S. or overseas. Concerned Women for America (CWA) supports H.R. 4411.
Most of the $12 million online-gambling industry operates overseas. Because these businesses are located offshore, state or federal law enforcement usually cannot reach them.
By making it illegal to accept payments from people who live where federal or state law prohibits wagering, the legislation would impact offshore gambling Web sites.
According to the Chicago Tribune, Americans bet almost $6 billion online in 2005, a $4.5 billion increase since 2001, due largely to the increased popularity of sports and poker. Americans wagered more than $500 million online on the 2005 Super Bowl, which increased more than 12 percent from the previous year and was five times the amount bet through Nevada casinos.
According to the Annenberg Public Policy Center at the University of Pennsylvania, the percentage of males between the ages of 14 and 22 who gambled each month increased 20 percent between 2004 and 2005. Nothing has contributed to that growth more than the Internet.
“Internet gambling’s 24/7 availability and easy access has enabled gambling addicts to feed their addictions without leaving their homes. Like other forms of gambling, it should be regulated under current gambling laws,” said Lanier Swann, CWA’s Director of Government Relations. “The recent increase of online gambling must be stopped. People of all ages must realize that they are breaking the law every time they gamble money online.
“Hopefully basketball fans will enjoy the upcoming games and stick to rooting for their team and not illegally throwing down money through their computers,” said Lanier Swann.
Another Internet gaming bill, the Internet Gambling Prohibition Act (H.R. 4777), sponsored by Rep. Bob Goodlatte (R-Virginia), will soon be considered in the House. It would update previous legislation to directly address Internet gambling and close any holes in the law.