Human Events: House fails to pass ban on Internet gambling

On July 17, by a vote of 245 to 159, the House, failed to suspend the rules and pass a bill (HR 3125) intended to ban Internet gambling. Under suspension of rules, a two-thirds vote (270 in this case) is needed for passage. A prime sponsor of the bill, Rep. Robert Goodlatte (R.-Va.), said he would try to bring the bill up later this session under a rule that would require only a simple majority.

HR 3125 would prohibit those engaged in gambling businesses from placing, receiving or facilitating the placement of a wager by using the Internet. It would not end internet betting on much horse or dog racing or jai-alai-some of the largest gambling markets. The bill drew from opposition many angles including those who criticized its "loopholes" and those opposed to extending federal power.

The "loophole" harped on primarily was the bill's provision reading: "The prohibition in this section does not apply to ... any otherwise lawful state-regulated parimutuel waging activities on live horse or dog racing or live Jai-Alai conducted on a closed-loop subscriber-based system."

Rep. Robert Wexler (D.-Fla.), argued that the bill rightly only regulated those industries not already regulated by states. "Parimutuel gaming is and always has been a state issue. States control parimutuel gaming, and they control it effectively. It is an industry that is highly regulated, pays taxes and has a respectable place in the states many of us represent. States do not, however, control casinos on Indian reservations. They certainly do not control offshore casino Web sites, of which there are at least 700, many of them in the Caribbean, which are not regulated and not taxed."

Rep. Christopher Cox (R.-Calif.) opposed the bill, saying it would set different regulations for online and off line gambling, impose unfair burdens on Internet service providers (ISPs), and institute price controls. "In this bill in order to avoid criminal prosecution, ISPs and other Interactive services would have to make sure that they are not hosting or linking to Web sites containing gambling advertising or information," Cox said. "To avoid criminal prosecution, they would have to block users from accessing foreign Web sites over which they have no control, an especially dangerous precedent while the United States at this very moment is seeking to oppose efforts by foreign governments to do that to our websites."

The bill's sponsor, Rep. Bob Goodlatte (R.-Va.), said the bill would not infringe on states' rights. "I want to make the point perfectly clear that we do not tell the states that they cannot use the Internet. We simply say that when they use the Internet, they have to use it in public places, like convenience stores or other places where children can be screened out and they cannot buy tickets online as they could at home."

A "yes" vote was a vote for the bill outlawing.most Internet gambling. A "no" vote was a vote against the bill.