As anticipated, the House of Representatives yesterday passed legislation that could block access to Internet gambling sites in the United States and, in the words of the bill, place a ‘prohibition on acceptance of any payment instrument for unlawful Internet gambling.’ There was a total of 317 ‘Ayes’ (201 Republican) and 93 ‘Noes’ (76 Democrat) with the lone Independent voting in favour and 22 Not Voting.

The legislation is designed to clarify and update existing laws and to make it illegal to gamble online – with exceptions. State-run lotteries and horseracing are exempted, which caused some opposition and unsuccessful calls for amendments to remove the exceptions. Others had argued that prohibition had not worked for alcohol and that banning Internet gambling would cause enforcement problems. The online gaming industry, estimated to be worth around US$12 billion annually, could perhaps better be regulated and taxed. Around half of global online gamblers are believed to be in the United States.

H.R.4411, introduced on 18 November 2005 and sponsored by Rep James A Leach and 35 cosponsors, will now be passed to the Senate where its passage is less certain. A previous attempt to pass similar legislation failed in 2000, although in that bill no exemption had been made for online lotteries. Senate leaders have not identified the bill as a top priority but Sen Jon Kyl is expected to pursue it aggressively. The National Indian Gaming Commission opposes the bill, saying it allows Internet gaming expansion in state lotteries and horse racing whilst requiring their players to drive to the reservation in order to make a legal wager. (E-07.12.06)

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