The House passed the Internet Gambling Prohibition and Enforcement Act by a bipartisan vote of 317-93 last week. The legislation was merged with a bill introduced by Congressman Jim Leach (R - Ia) to crack down on gambling website-based offshore gambling, as well as gambling that crosses state lines over Internet connections.

According to Goodlatte, online gambling sucks billions of dollars per year out of the US economy and serves as a vehicle for money laundering.

“Gambling on the Internet has become an extremely lucrative business. 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 US," Goodlatte commented following the vote.

" I call on the Senate to act on this important legislation,” he stated.

Goodlatte's bill would update the 1961 Wire Act by adding an “enforcement mechanism” to address the situation in which a gambling business is located offshore but uses bank accounts in the United States. The bill also provides an additional tool to fight illegal gambling by allowing federal, state, local and tribal law enforcement agencies to seek injunctions against any party to prevent and restrain violations of the Act.

In addition, the legislation increases the maximum prison term for a violation of the law from 2 years to 5 years.

However, it is doubtful whether the measures will clear the Senate and be reconciled before November's mid-term elections.