Internet Gambling Ban Now in Congress
Dateline: 07/18/00
One of three bills now being considered by the U.S. Congress designed to ban gambling on the Internet received a majority vote in the House yesterday but failed to get the two-thirds majority required for passage. All three bills would have the effect of banning the more than 700 Internet-based casinos and and similar gaming sites now generating over $1 billion in bets yearly.
While a majority of House Members late yesterday voted in favor of H.R. 3125 - The Internet Gambling Prohibition Act of 1999, the 245 - 159 vote left supporters 25 votes short of the two-thirds majority needed for passage under the rules. Rep. Bob Goodlatte (R-Virginia), sponsor of the bill, stated that it will soon be returned to the House floor under normal rules requiring only a simple majority for passage.
According to the Congressional Research Service, H.R. 3125 would, "Amend the Federal criminal code to make it unlawful for any person engaged in a gambling business to knowingly use the Internet or any other interactive computer service to:
(1) place, receive, or otherwise make a bet or wager; or
(2) send, receive, or invite information assisting in the placing of a bet or wager."
"Bets or Wagers" Means:
The bill defines "Bets or Wagers" as:
-
"(A) means the staking or risking by any person of something of value
upon the outcome of a contest of others, a sporting event, or a game
predominantly subject to chance, upon an agreement or understanding that the
person or another person will receive something of greater value than the
amount staked or risked in the event of a certain outcome;
-
(B) includes the purchase of a chance or opportunity to win a lottery or other
prize (which opportunity to win is predominantly subject to chance);
-
(C) includes any scheme of a type described in section 3702
of title 28" (Unlawful forms of sports gambling.)
| Instant Online Poll: What do you say? Should Internet gambling be prohibited? Click Here to Vote |
"Bets or Wagers" Does Not Mean:
Stock traders will be gratified to know that the definition of "Bets or
Wagers" in the bill specifically excludes buying stocks, commodities
futures and other forms of securities. Also not "Bets or Wagers" are
purchases of life, health, or accident insurance.
Specifically, H.R. 3125 excludes from the definition of "Bets and Wagers" the following:
-
(i) a bona fide business transaction governed by the securities laws (as that
term is defined in section 3(a)(47) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)(47))) for the purchase or sale at a future date of securities
(as that term is defined in section 3(a)(10) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)(10)));
-
(ii) a transaction on or subject to the rules of a contract market designated
pursuant to section 5 of the Commodity Exchange Act (7 U.S.C. 7);
-
(iii) a contract of indemnity or guarantee;
-
(iv) a contract for life, health, or accident insurance; or
-
(v) participation in a simulation sports game or an educational game or
contest that--
-
(I) is not dependent solely on the outcome of any single sporting event or
non-participant's singular individual performance in any single sporting
event;
-
(II) has an outcome that reflects the relative knowledge and skill of the
participants with such outcome determined predominantly by accumulated
statistical results of sporting events and non-participants accumulated
individual performances therein; and
-
(III) offers a prize or award to a participant that is established in
advance of the game or contest and is not determined by the number of
participants or the amount of any fees paid by those participants.
The bill would affect only Internet gambling businesses -- not the gamblers using them.
Exempted under all three bills are certain state-run and multi-state lotteries, plus authorized horse and dog racing tracks, and Jai Alai games. The race tracks and Jai Alai games were exempted because they conduct pari-mutuel betting -- a form of betting in which winners share payoffs based on total amounts bet on the participants.
Also exempted are interactive computer services such as AOL which act merely as hosts or gateways for gambling Web sites. These services could not be prosecuted under the proposed laws for hosting illegal gambling web sites provided they shut the sites down when asked to do so by law enforcement officers.
Also Out to Ban Internet Gambling
The other two bills to prohibit Internet gambling are S.
692. passed unanimously by the Senate on 11/19/1999 and H.R.
4419, currently being considered by the House Committee on Crime.
Who Supports Banning Internet Gambling?
Support for banning Internet gambling has come from traditional
brick-and-mortar casino operators, including Indian gaming interests, who see
Web-based casinos as direct competition, and from state and local governments
which get revenue for legalized gambling and lotteries. Also supporting the ban
are religious groups, anti-gambling groups, convenience store owners and major
sports leagues.
Who Opposes Banning Internet Gambling?
So far, there has been very little public opposition to these bills. Some
groups concerned with freedom of access to expanding technology and the Internet
have stated their opposition to the ban.
Sue Schneider, the chair of the Interactive Gaming Council, estimates that Americans will wager $2.2 billion online in 2000 and that that number will grow to $6.6 billion in 2003.
Reference Links
Testimony Before House Committee on Crime
Statements for and against the Internet Gambling ban delivered to the House Committee on Crime on March 9, 2000..Internet Gambling: Prohibition v. Legalization
Testimony of Tom W. Bell Director, Telecommunications & Technology Studies the Cato Institute before the National Gambling Impact Study Commission Chicago, Illinois May 21, 1998.Senate Judiciary Committee Report
The Committee's report on S. 692 to ban Internet gambling.Interactive Gaming Council
Group opposed to banning Internet gambling.An Unconventional Debate on Gambling
Analysis from Policy.com - July 14, 2000
Ban on Internet Gambling Might Cast Wide Net
U.S. ban on Internet gambling casts wider net than you might think. Analysis by Current Events/Law Guide Paul S. Reed.
Casino Gambling Guide Bill Burton expresses opposition to laws banning Internet gambling.
Does Internet gaming contribute to the breakup of the American family? Marriage Guides Sheri & Bob Stritof take a look at the gambling addiction.
Should Internet gambling be banned or not? From your About Guide.Express Your Opinions
Just click on a topic to read or take part in the discussion.
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