The US House of Representatives yesterday passed HR 556, the Unlawful Internet
Gambling Funding Prohibition Act of 2002, on a voice vote. The Bill is described
as an attempt: 'To prevent the use of certain bank instruments for unlawful
Internet gambling, and for other purposes,' and would make it illegal to use
credit cards or any form of electronic payment for the illegal offshore activity.
“We shut off the money, we shut off the sites,” said Rep. Spencer
Bachus, R-Ala. But the Bill now goes to the Senate, where it is unlikely to
make progress in the short time left in this Congress.
“It may be impossible to keep illegal gambling sites off the World Wide
Web, but it is entirely possible to prevent American credit card companies from
completing these transactions that these crooks need to make their money, and
that’s what this bill does,” said Rep. Joseph Pitts, R-Pa. That description
may raise some eyebrows in the board-rooms of the corporations which service
the multi-million dollar gaming sector, many of which are listed on US stock
exchanges.
The bill, championed by Rep. James Leach, R-Iowa, would make it a crime for
a gambling business to accept credit cards, checks or fund transfers in connection
with unlawful Internet gambling. The problem comes with the word 'unlawful'.
Most types of gambling are legal in Nevada, for instance, and in what sense
is a gambling transaction unlawful if it is conducted under the laws of an offshore
jurisdiction which permit it?
Even the notorious US Wire Act, which prohibits gambling transactions across
state lines, makes an exception if the transaction is legal in the jurisdiction
where it is carried out.
“Internet gambling serves no legitimate purpose in our society —
it is a danger to the family, it is a danger to society at large,” Leach
said. The moral majority which is attacking on-line gambling accuses it of corrupting
minors and encouraging money-laundering and hence terrorism. It may be so, although
these charges are strenuously denied by the gambling operators themselves, and
making gambling illegal will probably be about as effective as prohibition was
in stopping people from drinking.
Let's try not to notice that there's a Congressional election due in a few
weeks' time.