Completely new Law Threatens Online Gambling

On the 15th of February US Congressman from Virginia Bob Goodlatte reintroduced HR 4777, the “Internet Gambling Prohibition Act.” Goodlatte hopes to pass the bill, that may amend the sooner Title 18 of the United States Code containing the Federal Wire Act passed in 1961. The Wire Act outlawed telephone betting by making it illegal to place bets by “wire transmission.”

The explosion of Internet poker rooms and sports books in recent years was possible only as a result of the ambiguity surrounding this is of “wire” ;.While opponents of Internet gambling insisted that this is included cable, satellite, and cellular technology, no court would uphold a conviction based on that definition. Goodlatte hopes to amend that by expanding the Code to incorporate all types of electronic transmission, in addition to to incorporate all kinds of bets.

Earlier attempts to pass the legislation were thwarted vegus168 by the lobbying efforts of Jack Abramoff, in accordance with Gooodlatte’s office. But Abramoff’s recent guilty pleas to fraud, tax evasion and conspiracy to bribe public officials have added political capital to Goodlatte’s campaign.

In accordance with Goodlatte “Illegal online gambling doesn’t just hurt gamblers and their loved ones, it hurts the economy by draining dollars from the United States and serve as a vehicle for the money laundering,” stated Goodlatte. “It is time to shine a bright light on these illegal sites and bring an instant end to illegal gambling on the Internet.”

“But outlawing online gambling won’t stop the activity.” says Will Catlett of, an industry watchdog site. “It is only going to drive it underground. If online gambling is outlawed then the government will lose its capability to legislate online gambling policy and police it’s dangers, as well as its capability to tax the transactions. Goodlatte’s bill is going to do exactly the opposite of what it wants to do.”

By July 2005, in accordance with Forrester polls, there were over 300,000 gambling websites entertaining over 7,000,000 online gamblers. While the bulk of traffic to these websites initially came from the United States, that number is currently around 40% as players are attracted from all around the world. If the bill is passed, a will shrink dramatically, and shift its focus to other nations. Meanwhile, online gamblers in the United States is likely to be out of luck. “It’s amazing in my experience that this bill might just pass quietly with minimum resistance.” says Catlett. “Anyone who enjoys gambling online should really write their State Representative to let them know why this bill shouldn’t go through.”

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