Congress passes U.S. online-gaming crackdown
In the wee hours of Saturday morning, Congress has passed a measure that looks to have irrevocably changed the face of online gaming in the United States. The passing of the Internet Gambling Prohibition and Enforcement Act, sponsored by Sen. Jon Kyl (R-Arizona) and pushed-heavily by Senate Majority Leader Bill Frist, R-Tenn., has made it illegal for financial institutions in America to process credit cards, checks and other electronic fund transfer mechanisms to settle online wagers. The bill is the Senate’s version of a similar House bill passed in July, which was sponsored by by Rep. Jim Leach (R-Iowa) and Rep. Bob Goodlatte (R-Virginia). The bill will now go before President George Bush to be made law, and is expected to be signed into legislation within the next two weeks.
The measure was supported by various anti-gambling groups as well as the National Football League, while opposed by banking groups. Although the vast majority of internet gambling companies are headquartered outside the U.S., the majority of its customer base comes from within the country. The measure – not expected to affect gambling at tracks or casinos – was attached to a bill aimed at beefing-up port security.
Frist, who is eyeing a 2008 presidential bid,, had lobbied unsuccessfully of late to attach the measure to a bill involving military funding, but was shot-down as critics countered that a Defense Department bill was not the appropriate place for the gambling measure. Although similar arguments were put-forth with this bill, nonetheless, it passed.
Of note, with essentially legislating a prohibition on online gaming, conventional bookmakers are reportedly rejoicing over the news, with business expected to quadruple given the latest measure similar to how alcohol prohibition led to an unprecedented rise in illegal bootlegging.
- Rex Harris