WASHINGTON-The House late yesterday passed legislation outlawing illegal Internet gambling, a setback here for the emerging business of wireless betting.
The legislation, sponsored by Rep. Spencer Bachus (R-Ala.), would prohibit the use of credit cards, checks, electronic funds transfers and financial instruments for offshore Internet gambling. In addition to social and financial problems caused by Internet gambling, lawmakers and the FBI claim the fast-growing virtual casino business has ties to organized crime.
Bachus said the bill “will help stop the growing threat that Internet gambling poses to the most vulnerable in our society, kids and problem gamblers.”
The legislation pit two powerful committee chairmen-House Judiciary Committee Chairman James Sensenbrenner (R-Wis.) and House Financial Services Committee Chairman Michael Oxley (R-Ohio)-against each other on the issue of state jurisdiction. Sensenbrenner wanted sweeping legislation, while Bachus, Oxley and their backers supported a more limited bill allowing Internet gambling in states where gambling is already regulated. The Bachus bill, which includes an exemption for state-licensed gaming, benefits states with horse racing and lotteries. A companion bill, authored by Sen. Jon Kyl (R-Ariz.), is pending in the Senate.
Millions of dollars have been spent by casinos, Native American gaming interests and others to influence the legislation, according to the Center for Responsive Politics.
