Crack Cocaine of Gambling Part 1
LIFE AFTER PROHIBITION? EVALUATING THE IMPACT OF PENDING U.S. LEGISLATION : Part 1
After eight years of seemingly-endless legislative proposals, committee debates, and
defeats, news that United States lawmakers intended to propose yet another round of
prohibitionist legislation peaked little interest among industry leaders in early 2006. The
common refrain of the “Kyl Bill,” the “Leach Bill,” and the “Goodlatte Bill,” became little more than background noise in an environment of seemingly constant regulatory changes. However, in this author’s view, the online gambling industry has never been more vulnerable to adverse United States legislation than right now. Dueling bills in both the House and Senate seek to expand the scope of the Wire Act, to now specifically apply to online gambling businesses, and to games of chance other than sports betting.1 The bills also contain dangerous provisions requiring ISPs/hosts to block URLs identified as belonging to illegal online gambling websites, after receipt of notice from government officials. Still other provisions focus on prohibiting Electronic Funds Transfers (EFTs) relating to online wagers. In short, the United States Congress is attempting to give the Department of Justice a variety of tools necessary to clamp down on all manner of Internet gambling operations – even those located overseas. While United States criminal jurisdiction will not likely extend to foreign companies owned by foreign citizens, United States lawmakers have found another way to skin the cat; by cutting off the money sources, and by blocking electronic access to the sites at the source.
The current political climate bodes well for passage of one or more of these Bills.
Legislators are anxious to wash their hands of any perceived influence peddling by Jack
Abramoff, et. al., which allegedly occurred in previous years in connection with Internet
Gambling interests. With the mid-term elections approaching, and the War in Iraq continuing to devolve into further confusion and unpopularity, the GOP is seeking to start a new political conversation, and the evils of Internet gambling may provide a convenient scapegoat, creating just the diversion necessary to accomplish its goals. Although some form of gambling is legal in almost every state, the government continues to vilify certain forms of gambling as criminal vice activity that must be prohibited altogether. One lawmaker has called Internet gambling the “crack cocaine of gambling.” Now is seen as the perfect times to crack down on this “evil” activity and the wheels have been set in motion.
So what will the real impact of these Bills be if they pass? Will the online gambling
industry come to a screeching halt? Will United States advertising opportunities dry up? Will multimillion dollar, publicly-traded companies be forced underground, and their CEOs declared fugitives or “wanted men” in the United States? Not likely.
Comments
Great reading, keep up the great posts.
Peace, JiggaDigga
Posted by: JiggaDigga | April 7, 2006 01:52 AM
Awesome blog. Peace out until next time TabathaOster
Posted by: TabathaOster | May 18, 2006 01:13 PM