US Senator Pushes Internet Gambling Bill Ban

by Glen Shapiro, LawAndTax-News.com, New York

26 March 2003

Senator Jon Kyl (R-AZ) last week gave evidence before the Senate Banking Committee in support of his bill on internet gambling, which would stop US banks, credit card companies and online payment services from making payments to online gambling websites, which are usually established outside of US jurisdiction.

'Internet gambling is not a fun diversion, but feeds a dangerous and growing addiction,' Senator Kyl told the Committee, continuing: 'It is linked to organized crime, rife with fraud, ruins credit ratings, and allows many young people to build up thousands of dollars in debt on their parents' credit cards.'

'When I first proposed a ban in late 1995, there were roughly two dozen gaming sites. Today there are nearly 2,000. Without Congressional action, nearly $5 billion will be wagered on internet gaming sites this year alone.'

Also speaking on the subject last week, Senate Banking Committee Chairman and co-sponsor of Senator Kyl's bill, Richard Shelby (R-AL) dubbed the practice of internet gambling as 'evil', and explained that:

'The only available means of effective interdiction is through the media by which the gambler and the casino interface, namely through the internet service provider (ISP) or the payment system provider.'

The Caribbean offshore jurisdiction of Antigua and Barbuda recently announced its intention to bring the United States before the World Trade Organisation (WTO) over what is sees as interference in its economic development which has resulted from the US' anti-online gambling initiatives.

Antiguan Prime Minister, Lester Bird observed in February that:

'America is the largest gambling country in the world so how can they then be so unctuously self-righteous, to use their power to destroy the niches that we are having, trying to develop some kind of diversification in our economy. It is unfair and therefore we are going to take them before the WTO.'

Arizona and Alabama, the states represented by Kyl and Shelby respectively make millions per year from gambling in licensed casinos, a fact which observers argue has cast some doubt on their objectivity in this matter.

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