JUDICIARY: GROUPS MAKE NEW PUSH TO LEGALIZE GAMBLING ON INTERNET
Posted: Friday, December 4, 2009 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]
From Today's National Journal.

By Juliana Gruenwald


A range of interested parties told the House Financial Services Committee
on Thursday the best way to control Internet gambling is to legalize it,
allowing regulators to license, regulate and tax what is largely an
offshore industry.

The panel made up of consumer advocates, banking industry and gaming
officials and others was generally supportive of two related bills
introduced by Financial Services Chairman Barney Frank.

One would push back by one year the implementation date for the Unlawful
Internet Gambling Enforcement Act, a 2006 law banning financial
institutions from accepting payments from credit cards, checks or
electronic fund transfers to settle online gambling bets.

The Federal Reserve and Treasury Department announced last week they will
delay implementation of the law for six more months to give financial
institutions additional time to comply. Financial institutions have been
critical of the law, saying it is an unworkable burden that forces them
into policing online gambling.

Frank's other bill would establish a regulatory and enforcement framework
for legalized Internet gambling. West Virginia's First State Bank Chief
Information Officer Samuel Vallandingham testified for the Independent
Community Bankers of America and said his group backs both bills.

Financial Services ranking member Spencer Bachus opposes Frank's
legislation, saying "Internet gambling is and has been and will continue to
be a substantial threat to our youth."

But Parry Aftab, executive director of the Web safety group WiredSafety,
said she has reluctantly come to the conclusion that the only way to
protect consumers and youth from the risks of online gambling is to
legalize it. "If we don't legalize it, we can't regulate it," she said.

The only witness to come out against Frank's legalization bill was Robert
Martin, chairman of the Morongo Band of Mission Indians, who voiced concern
that the measure could hurt legal U.S. gambling operations.

"The legislation will do nothing but legalize offshore gaming at the
expense of American jobs," he said. But when pressed by Frank, Martin said
his group does not oppose Internet gambling but is more concerned about the
bill's competitive impact. Frank said he would be willing to work with
Martin to address his concerns with the bill.
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