A point of order has ended the latest attempt by US Senator Jon Kyl from Arizona to get his Unlawful Internet Gambling Enforcement Act of 2005 attached to an appropriations bill. It is not known who filed the point of order but it was made on the basis that the bill should go through the Banking and Finance Committee and not be included in appropriations legislation. A letter from three banking institutions caused the death knell for the Kyl bill.

The letter, dated 14 September and sent to the Senate, was jointly signed by the American Bankers Association, America’s Community Bankers and VISA, and expressed concern that they had not had the opportunity to review and comment on the Internet gambling amendment. A reservation about the enforcement mechanisms contained in the proposal and possible future problems that may arise on review were cited as reasons for requesting that the Senate refrain from adopting the amendment at present. The letter suggested that, as the Senate Banking Committee has jurisdiction over the subject matter of Senator Kyl’s amendment, the Committee consider any legislation in that area under regular order.

Jon Kyl has been trying to get an online gambling prohibition bill passed for over eight years. In his proposed legislation, banks and credit card companies would be required to block payments to online gambling websites. Some banks already impose a voluntary ban after threatening noises were made by the US Department of Justice. A high percentage of online gambling revenue comes from American citizens, even though the US Justice Department has declared the activity illegal. As no websites operate out of the US, online gamblers play at offshore operations.

So far the US administration has failed to get laws approved that would ban online gambling, and many see the attempt as an uphill struggle because of the very nature of the Internet. Senator Kyl will now have to put his bill before the Senate Banking Committee, where it is unlikely to become high priority.
(E-09.19.05)

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