Unlawful Internet Gambling Enforcement Act of 2005 Introduced in House

 

Congressman Jim Leach (R-IA), one of the primary supporters of legislation prohibiting Internet gambling, has introduced a bill to prohibit the use of credit in connection with unlawful Internet gambling.  This is the first bill introduced on Internet gambling in this Congress. 

 

The Unlawful Internet Gambling Enforcement Act of 2005 (H.R. 4411) has been referred to the House Committee on Financial Services.  Congressman Leach is the former chairman of that committee.

 

Representative Leach’s bill is similar to Internet gambling legislation he has introduced in the past, but includes specific exclusions for horse racing.  The bill also excludes intrastate wagering and some tribal gaming from its prohibitions.

 

Like legislation introduced in past Congresses, the bill prohibits the use of credit for “unlawful Internet gambling.”  Credit is so broadly defined in the legislation that it would include nearly every means of payment, except cash.  For this reason, it would effectively prohibit the customary methods used to fund Internet wagering and thus effectively prohibit it.  “Fortunately, the bill specifically excludes from the definition of ‘unlawful Internet gambling’ wagering on interstate horseracing, so long as it complies with the Interstate Horseracing Act of 1978.  This exclusion should satisfy the racing industry’s concerns with the overall prohibitions,” said Jay Hickey, President of the American Horse Council.

 

A Senate bill has not yet been introduced, but Senator Jon Kyl (R-AZ) is expected to introduce a bill in the second session of this Congress.  Senator Kyl has introduced legislation prohibiting Internet gambling in the last several Congresses.