Amendments defeated, the Goodlatte / Leach Bill to stifle online gambling now goes to the Senate
In a rushed, crowded schedule that left little room for debate, the merged Goodlatte/Leach Bill HR 4411 survived various amendments designed to defeat its carve-outs on horse racing, lotteries and fantasy sports and was passed 317 to 93 today (Tuesday)

The legislation is aimed at curbing selected sectors of Internet gambling by blocking the use of credit cards and bank transfers for online wagering and clarifying the Wire Act. It also carries the threat of interference with ISPs.

 

   

Having passed the House, the Bill next moves to a busy Senate, where similar measures in the past have failed, and it will likely face a more strenuous and detailed debate. Assuming it gets on to the crowded schedule at all, if it is not passed by the time the legislative season ends later this year, the whole process will have to be started again.

Predictably the supporters of the Bill emphasised the potential dangers of addiction, money laundering and use by minors in defending it's provisions. In a roller coaster debate amendments that sought to extend the ban to all forms of internet gambling included the hitherto exempted horse racing, lotteries and fantasy sports, was finally defeated after postponments.

The Associated Press reported that House Speaker Dennis Hastert said: "We must be wary of illegal gambling sites that offer fronts to criminals for money laundering, drug trafficking and terrorist financing.

"Internet-based companies must abide by US regulations that protect our children, citizens and the integrity of American business. The Internet Gambling Prohibition and Enforcement Act will do just that. It seeks to protect our children from gambling sites at home, keep our hard-earned money in the bank, and put the criminals that seek to take advantage of our family earnings in jail."

Representative Bob Goodlatte said the bill could curb the booming industry of offshore websites accepting bets and wagers from persons in the United States.

"Because these businesses are located offshore, they usually cannot be reached through state or federal law enforcement," Goodlatt said. Easy access to Internet gambling websites and lack of law enforcement give the US public a misimpression that Internet gambling is not illegal."

If the Bill makes it into law, the U.S. Justice Department would have authority to block money transfers to offshore gaming sites and seek injunctions against persons who foster illegal gambling via the Internet. Authorities would be allowed to work with Internet service providers, to block access to gambling Web sites.

Representative Barney Frank, a Massachusetts Democrat, said the bill restricted individual rights.

"What kind of social, cultural authoritarianism are we practicing here?'' Frank said during debate. "The fundamental principle of the autonomy of the individual is at stake today.''

U.S. casino operators including MGM Mirage and Harrah's Entertainment Inc. have urged Congress to consider legalising and regulating online gambling.

Representative Shelley Berkley, a Nevada Democrat, called Goodlatte a hypocrite because the bill wouldn't block online gambling on horseracing, which is legal under a separate U.S. statute governing the horseracing industry.

"He made a deal with the horseracing industry to exempt them from this bill,'' Berkley said. "And why is that? Because if he didn't, they would fight this tooth and nail.''

 
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