Harry Reid and Internet Gambling

[El Barto]

Senator Harry Reid of Nevade (the #2 Democrat in the Senate) has a good chance of being the new Minority Leader in the US Senate. I hear many Nevadans are not supportive of internet gambling (it competes with their live games). Reid probably gets many donations from the gaming industry. Where does Harry Reid stand on this issue?

[tripdad]

he may be opposed to "legalizing" internet gambling because of his constituency, but i have solid information that Harry Reid plays on PartyPoker, and his screen name is "teddysbiatch".

cheers!

[westmt01]

My guess is that Sen. Reid would be more supportive of legalizing Internet gambling than not, IF he is interested in pleasing the Nevada gaming community. I think (just my opinion) Las Vegas casinos would like to see Internet gambling lagalized and become more mainstream. I seriously doubt they see it as a threat: just look around Vegas. EVERY casino that previously did not have a poker room either has one now or will have one very soon. Poker is bringing a lot more people into the casino, and the current poker craze would never have happened without the Internet.

People will ALWAYS go to Vegas in large numbers regardless of other gambling alternatives. Local casinos in almost every major metropolitan center have not dampened people's appetite for Vegas.

So, if Sen. Reid really wants to help the Vegas gambling lobby he will push for legalizing (and regulating) Internet gambling. The big corporations that control vitually all of Vegas will be able to get into the act, governments will make more tax revenue, boatloads of new fish will infuse the Internet poker scene, and everyone will be happy. But since we live in an insanely Puritanical society, none of this will ever happen.

[itsmarty]

[ QUOTE ]
My guess is that Sen. Reid would be more supportive of legalizing Internet gambling than not, IF he is interested in pleasing the Nevada gaming community.

[/ QUOTE ]

The sponsors of anti-gaming legislation thus far have been from states with B&M gaming. The opinion of the US gaming industry seems to be that legalizing internet gaming in the US isn't very likely (espcially with our "moral" leadership reelected), so they'd rather try and kill it.

Martin

[westmt01]

I agree that legalizing Internet gaming has about as much chance of happening as me flopping Royal Flushes on 2 straight hands. But I can still dream!

I just think it would be good for Vegas as well. But it's probably a moot issue.

[GrannyMae]

So, if Sen. Reid really wants to help the Vegas gambling lobby he will push for legalizing (and regulating) Internet gambling.

yes he would. unfortunately he is powerless to make this a reality so he may just go the opposite way (which is popular with the right and popular with the casinos in the absence of approved regulation)

he could be our worst nightmare if he chooses to go the easy route and side with those fighting all forms of online gaming.

[Cubswin]

"The sponsors of anti-gaming legislation thus far have been from states with B&M gaming."

FALSE FALSE FALSE.... and FALSE again. There has not been one single sponsor of anti e-gaming at the federal level to come from Nevada or New Jersey.... and there has been 15 such atempts at federal legislation, with 38 different sponsors and cosponsors since 1995. Sponsors of anti-gaming legislation tend to come from bible belt states.


Additionally, nevada and new jersey have both flirted with the idea around of legalizing internet gambling at the state level... though it has gone no where. Internet casinos are not competition to B&M casinos... their relationship is symbiotic.

cubs

[westmt01]

[ QUOTE ]
Internet casinos are not competition to B&M casinos... their relationship is symbiotic.


[/ QUOTE ]

You are 100% correct. But I also agree with Granny that Sen. Reid et al are going to quickly realize, if they don't already, that legalizing Internet gambling doesn't have a prayer, and thus to avoid fighting a battle they can't win (and to appease the religious Right), they may jump on the anti-IG bandwagon. While I don't think it's as easy as all that, they very well can make it harder to fund IG accounts, which (as has been discussed here) will cause the fish to stay away. I'm not losing sleep over this possibility, but it wouldn't shock me either.

[itsmarty]

[ QUOTE ]
There has not been one single sponsor of anti e-gaming at the federal level to come from Nevada or New Jersey

[/ QUOTE ]

I specifically said "states with B&M gaming", referring in this case to Arizona and Connecticut. Strident disagreement requires careful reading.

Martin

[Cubswin]

Are you inductively reasoning that since Senator Kyl sponsors anti e-gambling legislation he is trying to protect the casino industry in AZ? Please tell me there is more substance to your arguement then this?

And who is this great congressman from CT you speak of? Not a single congressman from CT has ever sponsored anti e-gaming legislation at the federal level. Ive attached every single e-gaming related bill (and bill summary) since 1995, along with bill sponsors and co-sponsors in case you dont believe me.

Sorry to say, but your reasoning and your facts are flawed. Anti egaming legislation is coming from the christian right not the B&M industry.

cubs

*please note... i mispoke before... there has been one co-sponsor of anti-egmaing legisalation from NV and two co-sponsors from NJ. the strongest proponets of stopping e-gaming have come from bible belt states (Kyl is an outliner of this theory).


History of Federal E-gaming Legislation


S1495 Crime Prevention Act 1995
Introduced: 12/21/1995

Sponsor: Kyl [AZ]

Cosponsors: DeWine [OH], Hatch [UT]
Summary of Bill: Title XV: Internet Gambling - Modifies Federal criminal code provisions regarding the transmission of wagering information (wagering provisions) to set penalties for anyone (not just those in the business of gambling) engaged in betting or wagering who knowingly uses a wire or electronic communication facility for the transmission in interstate or foreign commerce of bets, wagers, or information assisting in the placing of bets or wagers (bets), or for the transmission of such a communication which entitles the recipient to receive money or credit as a result of bets.
Directs the court, in imposing a sentence for transmitting wagering information, to order that the defendant forfeit to the United States for deposit in a DOJ account any property (including hardware and software) involved in the offense and any property traceable to gross profits or other proceeds obtained from the offense.
(Sec. 1502) Directs the Commission to: (1) review the deterrent effect of existing guidelines applicable to the wagering provisions and report to the Congress; and (2) amend or promulgate guidelines to ensure that individuals convicted under such provisions are imprisoned for not less than one year.
(Sec. 1503) Requires the Attorney General to submit a report to the Congress that includes: (1) an analysis of the problems associated with enforcing the wagering provisions; (2) recommendations for the best use of the resources of DOJ and the Federal Communications Commission to enforce such provisions; and (3) an estimate of the amount of activity and money being used to gamble on the Internet.
Latest Major Action: 12/21/1995 Referred to Senate committee.
Status: Read twice and referred to the Committee on Judiciary.

HR2380 Internet Gambling Prohibition Act of 1997

Introduced: 9/3/1997

Sponsor: Goodlatte [VA-6]

Cosponsors: 49
Summary of Bill: Internet Gambling Prohibition Act of 1997 - Amends the Federal criminal code to provide penalties against any person who, while engaged in the business of betting or wagering, knowingly uses a communication facility for the transmission or receipt in interstate or foreign commerce of bets or wagers, information assisting in the placing of bets or wagers, or a communication that entitles the transmitter or receiver to receive money or credit as a result of bets or wagers. Provides a smaller penalty for those engaging in such activities who are not in the business of betting or wagering. Provides prohibition exceptions.
Authorizes the Federal Communications Commission to enforce against interstate computer service providers regulations prohibiting the interstate or foreign transmission of gambling information. Authorizes injunctive relief against such carriers or providers.
Expresses the sense of the Congress that the Federal Government should have extraterritorial jurisdiction over the transmission to or receipt from the United States of gambling information as well as any communication that entitles the transmitter or recipient to receive money or credit as a result of bets or wagers.
Requires a report from the Attorney General to the Congress concerning the enforcement of such gambling regulations and related recommendations.
Latest Major Action: 6/24/1998 House committee/subcommittee actions.
Status: Subcommittee Hearings Held.

HR4427 Internet Gambling Prohibition Act of 1998
Introduced: 8/6/1998
Sponsor: McCollum [FL-8]
Cosponsors: Gibbons [NV-2], Goodlatte [VA-6], LoBiondo [NJ-2]
Summary of Bill: Internet Gambling Prohibition Act of 1998 - Amends the Federal criminal code to prescribe penalties to be imposed against any person who, while engaged in the business of betting or wagering, knowingly uses a communication facility for the transmission or receipt in interstate or foreign commerce of bets or wagers, information assisting in the placing of bets or wagers, or a communication that entitles the transmitter or receiver to receive money or credit as a result of bets or wagers. Provides a smaller penalty for those engaging in such activities who are not in the business of betting or wagering. Provides prohibition exceptions, including for information for use in news reporting.
Sets forth provisions regarding duties of common carriers and interactive computer service providers upon being notified by a Federal, State, or local law enforcement agency of violations. Provides for injunctive relief, subject to specified limitations.
Latest Major Action: 9/14/1998 House committee/subcommittee actions.
Status: Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote

S474 Internet Gambling Prohibition Act of 1997
Introduced: 3/19/1997
Sponsor: Kyl [AZ]
Cosponsors: 13
Summary of Bill: Internet Gambling Prohibition Act of 1997 - Amends the Federal criminal code to prohibit and set penalties for: (1) placing, receiving, or otherwise making a bet or wager via the Internet or any other interactive computer service in any State; and (2) engaging in the business of betting or wagering through the Internet or any such service.
(Sec. 4) Grants the U.S. district courts original and exclusive jurisdiction to prevent and restrain violations of this Act. Authorizes the Attorney General to institute proceedings under this section, and the district court (upon application of the Attorney General) to enter a restraining order or an injunction or take any other action necessary to prevent a violation if the court determines that there is a substantial probability that such violation has occurred or will occur.
Authorizes a State attorney general, or other appropriate State official, to institute proceedings under this section under specified circumstances.
Sets forth provisions regarding temporary restraining orders, hearings, and permanent injunctions.
(Sec. 5) Directs the Secretary of State to: (1) negotiate with foreign countries to conclude international agreements that would enable the United States to enforce specified provisions of this Act with respect to persons engaging in violations from outside the United States; and (2) report on the progress of such negotiations to specified congressional officials.
Latest Major Action: 10/23/1997 Placed on Senate Legislative Calendar under General Orders. Calendar No. 223

HR4350 Internet Gambling Prohibition Act of 1998
Introduced: 7/29/1998

Sponsor: Stearns [FL-6]

Cosponsors: Danner [MO-6], Gillmor [OH-5], Largent [OK-1], Luther [MN-6], Oxley [OH-4]
Summary of Bill: Internet Gambling Prohibition Act of 1998 - Amends the Federal criminal code to prohibit, and set penalties for, knowingly using the Internet or any other interactive computer service to: (1) place, receive, or otherwise make a bet or wager with any person; or (2) intentionally send, receive, or invite information assisting in the placing of a bet or wager.
Prohibits, and sets penalties for, knowing use by a person engaged in a gambling business of the Internet or any other interactive computer service to: (1) place, receive, or otherwise make a bet or wager; or (2) send, receive, or invite information assisting in the placing of a bet or wager. Authorizes the court, upon conviction of a person and as an additional penalty, to enter a permanent injunction enjoining the transmission of bets or wagers or information assisting in the placing of a bet or wager. Lists exceptions, including certain State lottery, racing, or parimutuel activity and certain lawful bets or wagers that are made on Indian lands or conducted in accordance with an applicable Tribal-State compact.
(Sec. 4) Grants the U.S. district courts original and exclusive jurisdiction to prevent and restrain Internet gambling violations by issuing appropriate orders.
Authorizes the U.S. Attorney General and State Attorneys General to institute proceedings under this section. Sets forth provisions regarding orders and injunctions against Internet service providers, including scope of relief, considerations in the exercise of equitable discretion, findings, expiration of injunctions, expedited proceedings, privacy protection, and continuous court jurisdiction.
(Sec. 5) Requires a report to the Congress by: (1) the Attorney General regarding enforcing Internet gambling provisions and regarding the amount of money being used for Internet gambling; and (2) the Secretary of Commerce regarding methods for filtering and screening transmissions in violation of this Act originating outside of a State or the United States, the effect of injunctions imposed pursuant to this Act on interactive computer services and the Internet, and the economic and societal costs of illegal Internet gambling.
Latest Major Action: 8/6/1998 Referred to House subcommittee.

Status: Referred to the Subcommittee on Crime.



HR3125 Internet Gambling Prohibition Act of 2000

Introduced: 10/21/1999

Sponsor: Goodlatte [VA-6]

Cosponsors: 34
Summary of Bill: Internet Gambling Prohibition Act of 2000 - Amends the Federal criminal code to make it unlawful for any person engaged in a gambling business to knowingly use the Internet or any other interactive computer service (service) to: (1) place, receive, or otherwise make a bet or wager; or (2) send, receive, or invite information assisting in the placing of a bet or wager. Prescribes penalties.
Grants the district courts original and exclusive jurisdiction to prevent and restrain violations of this Act and prescribes civil remedies. Provides enforcement authority for violations taking place on Indian lands.
Exempts from liability under this Act any service provider who, after being properly notified by a Federal or State law enforcement agency that a particular online site of such provider is being used by another person to violate this Act, removes or disables access to such site. Requires a provider, in order to receive such immunity, to: (1) maintain an electronic or written policy that requires the provider to terminate the account of a violating subscriber following receipt of a notice of violation; and (2) not knowingly permit its service to be used for such prohibited purposes.
Authorizes alternative injunctive relief against such a provider and/or persons who use such provider.
Exempts providers from liability for content, furnished by another person, that advertises or promotes non-Internet gambling activities, unless the provider is engaged in the business of such gambling. Requires such providers, in order to receive such immunity, to maintain the termination policy and to not knowingly permit the use of their services for such activities as required under the exemption above. Requires the provider to take appropriate action after notice from a Federal or State law enforcement agency that the provider's service is being used for such prohibited purposes. Authorizes alternative injunctive relief against such a provider under certain limitations and considerations.
Exempts a provider who takes any action to remove or disable access, in compliance with this Act, from liability for damages, penalty, or forfeiture. States that nothing in this Act shall otherwise require a provider: (1) to monitor material or use of its service; or (2) except as required by notice, to gain access to, remove, or disable access to material. Lists exceptions to the prohibitions under this Act, including for certain State and multi-State lotteries and authorized horse or dog racing or live jai alai. Specifies that the prohibitions of this Act do not apply to any otherwise lawful bet or wager, placed on a closed-loop subscriber based service or a private network, and lawfully received by a federally recognized Indian tribe, if permitted under and conducted in accordance with the Indian Gaming Regulatory Act, provided that each person, when placing, receiving, or otherwise making such a bet or wager, is physically located on Indian lands.
Directs the Attorney General to submit to Congress: (1) an analysis of the problems associated with enforcing this Act; (2) recommendations for the best use of Department of Justice resources for enforcement; and (3) an estimate of the amount of activity and money being used to gamble on the Internet.
Latest Major Action: 7/17/2000 Failed of passage/not agreed to in House. Status: On motion to suspend the rules and pass the bill, as amended Failed by the Yeas and Nays: (2/3 required): 245 - 159 (Roll no. 404).


HR4419 Internet Gambling Funding Prohibition Act

Introduced: 5/10/2000

Sponsor: Leach [IA-1]

Cosponsor: Baker [LA-6], Green [WI-8], LaFalce [NY-29], Roukema [NJ-5]
Summary of Bill: Unlawful Internet Gambling Funding Prohibition Act - Prohibits any person engaged in a gambling business from knowingly accepting in connection with the participation of another person in Internet gambling: (1) credit, or the proceeds of credit, extended to another (including credit card extension of credit); (2) an electronic fund transfer or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of another; (3) any instrument drawn by or on behalf of another and payable through any financial institution; or (4) the proceeds of any other form of financial transaction involving a financial institution as payor or financial intermediary for another.
(Sec. 3) Prescribes judicial guidelines under which the Federal district courts exercise exclusive jurisdiction to prevent or restrain violations of this Act. Provides for civil and criminal penalties, including a permanent injunction against wagering.
Shields certain financial intermediaries from liability for either unknowing involvement or unknowing use of their facilities in: (1) any credit transaction, electronic fund transfer, or money transmitting service; or (2) drawing, paying, transferring, or collecting a check or draft instrument. Cites exceptions for knowing participation in a gambling business.
(Sec. 4) Declares that the Federal Government, in deliberations with a foreign government on money laundering, corruption, and crime issues, should: (1) encourage cooperation by foreign governments and relevant international fora in identifying whether Internet gambling operations are being used for money laundering, corruption, or other crimes; (2) advance policies that promote international cooperation in the enforcement of this Act; and (3) encourage the Financial Action Task Force on Money Laundering to study, in its annual report, the extent to which Internet gambling operations are being used for money laundering.
(Sec. 5) Amends the Federal Deposit Insurance Act to provide that if an appropriate Federal banking agency determines that an insured depository institution is engaged in activities proscribed under this Act, such agency may issue an injunction against the person in violation of this Act.
Latest Major Action: 9/29/2000 Placed on the Union Calendar, Calendar No. 553.


HR5020 Comprehensive Internet Gambling Prohibition Act of 2000

Introduced: 7/27/2000
Sponsor: Conyers [MI-14]
Cosponsors: None
Summary of Bill: Comprehensive Internet Gambling Prohibition Act of 2000 - Amends provisions of the Federal criminal code regarding the unauthorized transmission of wagering information to: (1) include all forms of communication (currently limited to wire communication); (2) include transmissions within the special maritime and territorial jurisdiction of the United States, as well as outside transmissions originating from or received in the United States; and (3) require any person or entity (currently only a common carrier) notified that its communication facility is being used for transmitting bets or wagers to immediately disallow such use.
Exempts an interactive computer service from liability for: (1) the use of its facilities or services by another person to engage in Internet gambling; or (2) content provided by another person that advertises or promotes an unauthorized gambling activity.
Latest Major Action: 8/8/2000 Referred to House subcommittee.

Status: Referred to the Subcommittee on Crime


S692 Internet Gambling Prohibition Act of 1999

Introduced: 3/23/1999

Sponsor: Kyl [AZ]

Cosponsors: 23
Summary of Bill: Internet Gambling Prohibition Act of 1999 - Amends the Federal criminal code to make it unlawful for any person engaged in a gambling business to knowingly use the Internet or any other interactive computer service (service) to: (1) place, receive, or otherwise make a bet or wager; or (2) send, receive, or invite information assisting in the placing of a bet or wager. Prescribes penalties.
Grants the district courts original and exclusive jurisdiction to prevent and restrain violations of this Act. Authorizes the United States or a State attorney general to institute such proceedings. Authorizes a professional or amateur sports organization whose games or athletic performances are alleged to be the basis of a violation to institute civil proceedings to prevent or restrain such violation. Provides enforcement authority for violations taking place on Indian lands.
Exempts from liability under this Act any service provider who, after being properly notified by a Federal or State law enforcement agency that a particular online site of such provider is being used to violate this Act, removes or disables access to such site. Requires a provider, in order to receive such immunity, to: (1) maintain an electronic or written policy that requires the provider to terminate the account of a violating subscriber following receipt of a notice of violation; and (2) not knowingly permit its service to be used for such prohibited purposes.
Authorizes alternative injunctive relief against such a provider, under certain limitations and considerations.
Exempts providers from liability for content, furnished by another person, that advertises or promotes non-Internet gambling activities, unless the provider is engaged in the business of such gambling. Requires such providers, in order to receive such immunity, to maintain the termination policy and to not knowingly permit the use of their services for such activities as required under the exemption above. Requires the provider to take appropriate action after notice from a Federal or State law enforcement agency that the provider's service is being used for such prohibited purposes. Authorizes alternative injunctive relief against such a provider under certain limitations and considerations.
Exempts from liability a provider who takes any action required under this Act. States that nothing in this Act shall otherwise require a provider: (1) to monitor material or use of its service; or (2) except as required by notice, to gain access to, remove, or disable access to material. Lists exceptions to the prohibitions under this Act, including certain State and multi-State lotteries and authorized horse or dog racing. Exempts from the provisions of this Act class II or III gaming activities properly conducted on Indian lands under the Indian Gaming Regulatory Act or other Federal authority or with the approval of appropriate State gaming or regulatory authorities.
Directs the Attorney General to submit to Congress: (1) an analysis of the problems associated with enforcing this Act; (2) recommendations for the best use of Department of Justice resources for enforcement; and (3) an estimate of the amount of activity and money being used to gamble on the Internet.
Latest Major Action: 2/3/2000 Referred to House subcommittee.

Status: Referred to the Subcommittee on Crime.



HR556 Internet Gambling Prohibition Act

Introduced: 2/12/2001

Sponsor: Leach [IA-1]

Cosponsors: Bachus [AL-6], Green [WI-8], LaFarce [NY-29], Owens [NY-11], Oxley [OH-4], Petri [WI-6], Wolf [VA-10]
Summary of Bill: Leach-LaFalce Internet Gambling Enforcement Act - (Sec. 3) - Prohibits any person engaged in a business of betting or wagering from knowingly accepting in connection with the participation of another person in Internet gambling: (1) credit; (2) electronic fund transfers or funds transmitted by or through a money transmitting business; (3) any instrument drawn by or on behalf of another and payable through any financial institution; or (4) the proceeds of any other form of financial transaction involving a financial institution as payer or financial intermediary for another.
Includes in the definition of bets or wagers: (1) the purchase of a chance or opportunity, predominantly subject to chance, to win a lottery or other prize; (2) sports betting; and (3) any instructions or information pertaining to the establishment or movement of funds in an account by the bettor or customer with the business of betting or wagering.
Excludes from the definition of bets or wagers: (1) any activity governed by the securities laws for the purchase or sale of securities; (2) any transaction subject to the Commodity Exchange Act; (3) over-the-counter derivative instruments; (4) any other transaction exempt from regulation under the Commodity Exchange Act or from State gaming or bucket shop laws; (5) any contract of indemnity or guarantee, or for insurance; (6) deposits or transactions with a depository institution; (7) any participation in a simulation sports game or an educational game or contest that meets certain requirements; and (8) any lawful transaction with a business licensed or authorized by a State.
Prescribes judicial guidelines under which the Federal district courts exercise exclusive jurisdiction to prevent or restrain violations of this Act. Authorizes the Attorney General or any State attorney general to institute proceedings for injunctive relief. Grants the United States enforcement authority for violations on Indian lands.
Directs that relief granted under this Act against an interactive computer service: (1) be limited to the removal of, or disabling of access to, an on-line site violating this Act, or a hypertext link to such site, that resides on a computer server that the service controls or operates, with an exception; (2) be available only after notice to the service and an opportunity to appear are provided; (3) not impose any obligation on a service to monitor its service or to affirmatively seek facts indicating activity violating this Act; (4) specify the service to which it applies; and (5) specifically identify the location of the on-line site or hypertext link to be removed or access to which is to be disabled.
Requires the court, in considering granting relief against any payment system, or any participant in a payment system that is a creditor, credit card issuer, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local network utilized to effect a credit transaction, electronic fund transfer, or money transmitting service, or a participant in such network, to consider the following factors: (1) the extent to which the person is extending credit or transmitting funds knowing the transaction is in connection with unlawful Internet gambling; (2) the history of that person in extending credit or transmitting funds with such knowledge; (3) the extent to which that person has established and is maintaining policies and procedures in compliance with regulations prescribed under this Act; (4) the feasibility that any specific remedy prescribed in the order issued under this Act can be implemented without substantial deviation from normal business practice; and (5) the costs and burdens the specific remedy will have on that person.
Directs the Attorney General or a State attorney general to: (1) notify that person and the appropriate regulatory agency of the violation or potential violation and the remedy sought; and (2) allow that person 30 days to implement a reasonable remedy. Prescribes a criminal fine and/or up to five years imprisonment for violations of this Act. Authorizes a court to enter a permanent injunction enjoining any person convicted of a criminal offense under this Act from any activity related to illegal bets or wagers.
Specifies circumstances for the liability under this Act of any creditor, issuer, institution, operator business, network, or participant or any interactive computer service or telecommunications service.
Makes liable under this Act any such creditor, issuer, institution, operator, business, network, or participant that has actual knowledge and control of bets and wagers and: (1) operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers are offered or may be placed, received, or otherwise made; or (2) owns or controls, or is owned or controlled by, any person who operates, manages, supervises, or directs such a website.
Directs the Secretary of the Treasury to prescribe regulations requiring any designated payment system to establish policies and procedures reasonably designed to identify and prevent restricted transactions.
Sets forth provisions regarding: (1) requirements for policies and procedures; and (2) compliance with such policies and procedures; (3) immunity from liability for anyone blocking or refusing to honor restricted transactions; and (4) enforcement.
(Sec. 4) Declares that the Federal Government, in deliberations with a foreign government on money laundering, corruption, and crime issues, should: (1) encourage cooperation by foreign governments and relevant international fora in identifying whether Internet gambling operations are being used for money laundering or other crimes; (2) advance policies that promote international cooperation in the enforcement of this Act; and (3) encourage the Financial Action Task Force on Money Laundering to study the extent to which Internet gambling operations are being used for money laundering.
Requires the Secretary of the Treasury to report to Congress on deliberations between the United States and other countries on Internet gambling-related issues.
(Sec. 5) Modifies Federal criminal code provisions regarding gambling to: (1) replace the definition of "wire communication facility" with "communication facility"; (2) include satellite and microwave transmissions, and mobile as well as fixed connections; and (3) increase the penalty for unlawful wire transfers of wagering information.
Latest Major Action: 10/2/2002 Referred to Senate committee.

Status: Received in the Senate and Read twice and referred to the Committee on the Judiciary.



HR2579 Internet Gambling Payments Prohibition Act

Introduced: 7/20/2001

Sponsor: LaFalse [NY-29]

Cosponsors: none
Summary of Bill: Internet Gambling Payments Prohibition Act - Prohibits any person engaged in a gambling business from knowingly accepting in connection with the participation of another person in Internet gambling: (1) credit; (2) electronic fund transfers or funds transmitted by or through a money transmitting business; (3) any instrument drawn by or on behalf of another and payable through any financial institution; or (4) the proceeds of any other form of financial transaction involving a financial institution as payer or financial intermediary for another.
Grants Federal district courts original and exclusive jurisdiction to prevent or restrain violations of this Act. Provides for civil and criminal penalties, including a permanent injunction against wagering.
Exempts certain financial intermediaries from liability for unknowing involvement or unknowing use of their facilities in: (1) any credit transaction, electronic fund transfer, or money transmitting service; or (2) drawing, paying, transferring, or collecting a check or draft instrument.
Declares that the Federal Government, in deliberations with a foreign government on money laundering, corruption, and crime issues, should: (1) encourage cooperation by foreign governments and relevant international fora in identifying whether Internet gambling operations are being used for money laundering or other crimes; (2) advance policies that promote international cooperation in the enforcement of this Act; and (3) encourage the Financial Action Task Force on Money Laundering to study the extent to which Internet gambling operations are being used for money laundering.
Amends the Federal Deposit Insurance Act to provide that if an appropriate Federal banking agency determines that an insured depository institution is engaged in activities proscribed under this Act, such agency may issue an order prohibiting certain related financial activities.
Latest Major Action: 8/6/2001 Referred to House subcommittee.

Status: Referred to the Subcommittee on Crime.



HR3215 Combating Illegal Gambling Reform and Modernization Act

Introduced: 11/1/2001

Sponsor: Goodlatte [VA-6]

Cosponsors: 155
Summary of Bill: Combating Illegal Gambling Reform and Modernization Act - Amends the Federal criminal code to revise provisions governing interstate gambling to cover Internet gambling overseas.
Applies such provisions to communication facilities (current law applies to "wire" communication facilities) and includes transmissions by satellite and microwave as covered means of communication.
Prohibits (with exceptions) any person engaged in a gambling business from knowingly: (1) using a communication facility for the transmission in interstate or foreign commerce, within the special maritime and territorial jurisdiction of the United States, or to or from any place outside the jurisdiction of any nation with respect to any transmission to or from the United States of bets or wagers, of betting information, or of a communication which entitles the recipient to receive money or credit as a result of bets or wagers; or (2) accepting credit, an electronic fund transfer, a check, or the proceeds of other prescribed forms of financial transaction in connection with the transmission of such a communication of information assisting the placing of bets. Sets penalties of up to five years imprisonment and fines for violations.
Lists exceptions, including certain: (1) transmissions of information assisting in the placing of bets for use in news reporting or between one State or foreign country where betting or wagering is permitted and either another State or foreign country where such betting on the same event is permitted or an out-of-State data center for the purposes of assisting in the operation of a State-specific lottery; (2) uses of communication facilities for the transmission of purchases of lottery chances as long as such bets are placed on the premises of a retail outlet that is licensed and open to the public; and (3) transmissions of information assisting in the placing of bets where the individual placing the bet, the gambling business, and processing facility are located in the same State, the State (or Indian tribe) has explicitly authorized such betting, business, and facility, and the State has a secure and effective customer and age verification system.
Requires a common carrier subject to the jurisdiction of the Federal Communications Commission, upon written notification by a Federal, State, tribal, or local law enforcement agency that one of its communication facilities is or will be used unlawfully by its subscriber to transmit or receive gambling information, to discontinue or refuse the leasing, furnishing, or maintaining of such facility, after reasonable notice to the subscriber.
Sets forth remedies for violations. Bars imposition of damages, penalties, or forfeiture against any person or entity for an act done in compliance with notice received from a law enforcement agency. Authorizes a Federal, State, tribal, or local law enforcement agency, in a civil action, to obtain injunctive or declaratory relief, such to specified limitations. Limits relief granted against an interactive computer service to removal or disabling of access to the violating online site, with specified exceptions.
Latest Major Action: 7/19/2002 Placed on the Union Calendar, Calendar No. 356. 10/16/2002 Supplemental report filed by the Committee on Judiciary, H. Rept. 107-591, Part II.



HR4652 Consumer Protection for On-line Games Act

Introduced: 5/2/2002

Sponsor: Kilpatrick [MI-15]

Cosponsors: None

Summary of Bill: Consumer Protection for On-Line Games Act - Directs the Federal Trade Commission (FTC) to prescribe rules to prohibit unfair and deceptive acts and practices in the labeling and advertising of games of chance and games of skill offered by means of the communications networks by network game operators. Requires that such rules prohibit: (1) making false, unsubstantiated, non-verifiable, or misleading claims regarding the fairness of the game; (2) displaying or advertising any seal or insignia attesting to the fairness of any game of chance or skill unless such seal or insignia has been awarded by a self-regulatory organization that complies with this Act; and (3) unfair or deceptive acts or practices that evade such rules or undermine customer rights.
Requires a self-regulatory organization, to be in compliance, to: (1) be able to enforce compliance by its members; and (2) have rules designed to prevent fraudulent and deceptive acts and practices, to protect consumers and the public interest, and to discipline violating members.
Authorizes State attorneys general to bring civil actions on behalf of residents in U.S. district court to enjoin a pattern or practice which violates such FTC rules.
Latest Major Action: 5/17/2002 Referred to House subcommittee.
Status: Referred to the Subcommittee on Commerce, Trade and Consumer Protection.


Comprehensive Internet Gambling Prohibition Act of 2002

Introduced: 9/25/2002

Sponser: Johnson [SD]

Cosponsors: None
Summary of Bill: Comprehensive Internet Gambling Prohibition Act of 2002 - Amends provisions of the Federal criminal code regarding the unauthorized transmission of wagering information to: (1) include all forms of communication (currently limited to wire communication); (2) include transmissions within the special maritime and territorial jurisdiction of the United States, as well as outside transmissions originating from or received in the United States; and (3) require any person or entity (currently only a common carrier) notified that its communication facility is being used for transmitting bets or wagers to immediately disallow such use.
Excludes from prohibitions of this Act information exchanged through telecommunications connections using bi-directional communication with external associated equipment utilizing communication protocols that ensure that erroneous data or signals will not adversely affect or influence the operation of gaming devices connected to an accounting system if the information is used only to monitor gaming device play, display prize amounts, provide security information, or provide other accounting information transmitted among one or more Class II or Class III gaming facilities as defined by the Indian Gaming Regulatory Act.
Exempts an interactive computer service from liability for: (1) the use of its facilities or services by another person to engage in Internet gambling; or (2) content provided by another person that advertises or promotes an unauthorized gambling activity.
Latest Major Action: 9/25/2002 Referred to Senate committee.

Status: Read twice and referred to the Committee on the Judiciary.



HR5760 Internet Gambling Licensing and Regulation Commission Act

Introduced: 11/19/2002

Sponsor: Conyers [MI-14]

Cosponsors: None

Summary of Bill: Internet Gambling Licensing and Regulation Commission Act - Establishes the Internet Gambling Licensing and Regulation Study Commission to conduct a comprehensive study of the existing legal framework governing Internet gambling and the issues involved with the licensing and regulation of Internet gambling.
Includes within the matters to be studied by the Commission: (1) a review of existing laws governing various forms of wagering over the Internet; (2) assessments of the impact of Internet gambling with respect to problem gambling, the availability of gambling to minors, and its susceptibility to money laundering by terrorists or criminal enterprises; (3) the potential of regulatory measures to minimize adverse impacts of Internet gambling; (4) federalism issues; and (5) the problems of unregulated international Internet wagering and Federal options in seeking international cooperation.
Requires the Commission to issue proposed changes to Federal laws and regulations providing for the licensing and regulation of Internet gambling in the United States which: (1) preserve the prerogatives of States and tribal sovereignty; (2) include measures to minimize adverse impacts of Internet gambling and to eliminate the disparate treatment of various forms of Internet gambling (with an exception); (3) provide for the appropriate taxation of Internet gambling enterprises (comparable to land-based gambling); (4) provide for the licensing of enterprises both within and outside of the United States; (5) remain consistent with U.S. goals, principles, and obligations in other international negotiations governing electronic commerce; and (6) include measures to discourage, prohibit, or prevent U.S. citizens from wagering with unlicensed Internet gambling operations outside the United States.
Latest Major Action: 11/22/2002 Referred to House subcommittee.
Status: Referred to the Subcommittee on Telecommunications and the Internet, for a period to be subsequently determined by the Chairman.


HR 21 Unlawful Internet Gambling Funding Prohibition Act
Introduced: 1/7/2003
Sponsor: Leach [IA-2]
Cosponsors: Akin [MO-2], Bachus [AL-6], Gresham [SC-3], Berry [AR-1], Boucher [VA-9], Case [HI-2], Duncan [TN-2], Franks [AZ-2], Glimor [OH-5], Goodlatte [VA-6], Gordon [TN-6], Green [WI-8], Hart [PA-4], Hooley [OR-5], Isakson [GA-6], Johnson [TX-30], Kelly [NY-19], Kennedy [MN-6], King [NY-3], Latham [IA-4], Lipinski [IL-3], Norwood [GA-9], Osborne [NE-3], Oxley [OH-4], Pickering [MS-3], Pitts [PA-16], Platts [PA-19], Rogers [MI-8], Schrock [VA-2], Souder [IN-3], Spratt [SC-5], Lee [NE-2], Upton [MI-6], Wicker [MS-1], Wolf [VA-10]
Summary of Bill: Unlawful Internet Gambling Funding Prohibition Act - (Sec. 3) - Prohibits any person engaged in a business of betting or wagering from knowingly accepting in connection with the participation of another person in Internet gambling: (1) credit; (2) electronic fund transfers or funds transmitted by or through a money transmitting business; (3) any instrument drawn by or on behalf of another and payable through any financial institution; or (4) the proceeds of any other form of financial transaction involving a financial institution as payer or financial intermediary for another.
Includes in the definition of bets or wagers: (1) the purchase of a chance or opportunity, predominantly subject to chance, to win a lottery or other prize; (2) sports betting; and (3) any instructions or information pertaining to the establishment or movement of funds in an account by the bettor or customer with the business of betting or wagering.
Excludes from the definition of bets or wagers: (1) any activity governed by the securities laws for the purchase or sale of securities; (2) any transaction subject to the Commodity Exchange Act; (3) over-the-counter derivative instruments; (4) any other transaction exempt from regulation under the Commodity Exchange Act or from State gaming or bucket shop laws; (5) any contract of indemnity or guarantee, or for insurance; (6) deposits or transactions with a depository institution; (7) any participation in a simulation sports game or an educational game or contest that meets certain requirements; and (8) any lawful transaction with a business licensed or authorized by a State.
Prescribes judicial guidelines under which the Federal district courts exercise exclusive jurisdiction to prevent or restrain violations of this Act. Authorizes the Attorney General or any State attorney general to institute proceedings for injunctive relief. Grants the United States enforcement authority for violations on Indian lands.
Directs that relief granted under this Act against an interactive computer service: (1) be limited to the removal of, or disabling of access to, an on-line site violating this Act, or a hypertext link to such site, that resides on a computer server that the service controls or operates, with an exception; (2) be available only after notice to the service and an opportunity to appear are provided; (3) not impose any obligation on a service to monitor its service or to affirmatively seek facts indicating activity violating this Act; (4) specify the service to which it applies; and (5) specifically identify the location of the on-line site or hypertext link to be removed or access to which is to be disabled.
Requires the court, in considering granting relief against any payment system, or any participant in a payment system that is a creditor, credit card issuer, financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local network utilized to effect a credit transaction, electronic fund transfer, or money transmitting service, or a participant in such network, to consider the following factors: (1) the extent to which the person is extending credit or transmitting funds knowing the transaction is in connection with unlawful Internet gambling; (2) the history of that person in extending credit or transmitting funds with such knowledge; (3) the extent to which that person has established and is maintaining policies and procedures in compliance with regulations prescribed under this Act; (4) the feasibility that any specific remedy prescribed in the order issued under this Act can be implemented without substantial deviation from normal business practice; and (5) the costs and burdens the specific remedy will have on that person.
Directs the Attorney General or a State attorney general to: (1) notify that person and the appropriate regulatory agency of the violation or potential violation and the remedy sought; and (2) allow that person 30 days to implement a reasonable remedy. Prescribes a criminal fine and/or up to five years imprisonment for violations of this Act. Authorizes a court to enter a permanent injunction enjoining any person convicted of a criminal offense under this Act from any activity related to illegal bets or wagers.
Specifies circumstances for the liability under this Act of any creditor, issuer, institution, operator business, network, or participant or any interactive computer service or telecommunications service.
Makes liable under this Act any such creditor, issuer, institution, operator, business, network, or participant that has actual knowledge and control of bets and wagers and: (1) operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers are offered or may be placed, received, or otherwise made; or (2) owns or controls, or is owned or controlled by, any person who operates, manages, supervises, or directs such a website.
Directs the Secretary of the Treasury to prescribe regulations requiring any designated payment system to establish policies and procedures reasonably designed to identify and prevent restricted transactions.
Sets forth provisions regarding: (1) requirements for policies and procedures; (2) compliance with such policies and procedures; (3) immunity from liability for anyone blocking or refusing to honor restricted transactions; and (4) enforcement.
(Sec. 4) Declares that the Federal Government, in deliberations with a foreign government on money laundering, corruption, and crime issues, should: (1) encourage cooperation by foreign governments and relevant international fora in identifying whether Internet gambling operations are being used for money laundering or other crimes; (2) advance policies that promote international cooperation in the enforcement of this Act; and (3) encourage the Financial Action Task Force on Money Laundering to study the extent to which Internet gambling operations are being used for money laundering.
Requires the Secretary of the Treasury to report to Congress on deliberations between the United States and other countries on Internet gambling-related issues.
(Sec. 5) Modifies Federal criminal code provisions regarding gambling to: (1) replace the definition of "wire communication facility" with "communication facility"; (2) include satellite and microwave transmissions, and mobile as well as fixed connections; and (3) increase the penalty for unlawful transfers of wagering information.
Latest Major Action: 5/22/2003 Placed on the Union Calendar, Calendar No. 65.



HR 1223 Internet Gaming Licensing and Regulation Commission Act

Introduced: 3/12/2003

Sponsor: Conyers [MI-14]

Cosponsors: Baca [CA-43], Berkley [NV-1], Canon [UT-3]

Summary of Bill: Internet Gambling Licensing and Regulation Commission Act - Establishes the Internet Gambling Licensing and Regulation Study Commission to conduct a comprehensive study of the existing legal framework governing Internet gambling and the issues involved with the licensing and regulation of Internet gambling.
Requires matters studied to include: (1) a review of existing laws governing wagering over the Internet; (2) the impact of Internet gambling with respect to problem gambling, the availability of gambling to minors, and its susceptibility to money laundering by terrorists or criminal enterprises; (3) the potential of regulatory measures to minimize adverse impacts of Internet gambling; (4) an evaluation of the personal use of credit, credit cards, electronic fund transfers, and bank instruments to fund Internet gambling; (5) federalism issues; (6) the problems of unregulated international Internet wagering and Federal options in seeking international cooperation; and (7) an assessment of European Union member state activities to regulate and license Internet gambling.
Requires the Commission to issue proposed changes which: (1) preserve the prerogatives of States and tribal sovereignty; (2) include measures to minimize adverse impacts of Internet gambling and to eliminate the disparate treatment of various forms of Internet gambling (with an exception); (3) provide for the appropriate taxation of Internet gambling enterprises; (4) provide for the licensing of enterprises both within and outside of the United States; (5) remain consistent with U.S. goals, principles, and obligations in other international negotiations governing electronic commerce; and (6) include measures to discourage, prohibit, or prevent U.S. citizens from wagering with unlicensed Internet gambling operations outside the United States.
Latest Major Action: 4/29/2003 House committee/subcommittee actions.

Status: Subcommittee Hearings Held.


S627 Internet Gambling Prohibition Act

Introduced: 3/13/2003

Sponsor: Kyl [AZ]

Cosponsors: Feinstein [CA], Shelby [AL]
Summary of Bill: Internet Gambling Funding Prohibition Act - (Sec. 3) Establishes within the Department of the Treasury the Office of Electronic Funding Oversight to coordinate Federal efforts to prohibit restricted transactions.
Prohibits any person engaged in the business of betting or wagering from knowingly accepting in connection with another person's participation in Internet gambling: (1) credit; (2) electronic fund transfers or funds transmitted through money transmitting businesses; (3) any instrument drawn by or on behalf of another and payable through any financial institution; or (4) the proceeds of any other form of financial transaction involving a financial institution as payer or financial intermediary on behalf of another person.
Makes this prohibition inapplicable to any otherwise lawful bet or wager that is made on an interstate or intrastate basis on a live horse or a live dog race, or to the sending, receiving, or inviting of information assisting in the placing of such a bet or wager, if such activity is: (1) expressly authorized under applicable Federal law and the laws of that State and licensed or regulated by the State in which such bet or wager is received; (2) placed on a closed-loop subscriber-based service; (3) initiated from a State and received in a State in which betting or wagering on that same type of live horse or live dog racing is lawful; (4) subject to the regulatory oversight and minimum control standards for accounting, regulatory inspection, and auditing by the State in which the bet or wager is received; and (5) made in accordance with the Interstate Horse Racing Act of 1978 or, in the case of live dog racing, is subject to specified consent agreements comparable to those required by that Act.
Provides that the exception does not apply to: (1) a bet or wager made by the use of an agent or proxy using the Internet or an interactive computer service, (but does not prohibit the owner-operator of a pari-mutuel wagering facility that is licensed by a State from employing an agent in the operation of the account wagering system owned or operated by the pari-mutuel facility); and (2) an otherwise lawful bet or wager on any game that constitutes class II or class II gaming (as defined in the Indian Gaming Regulatory Act) or the sending, receiving, or inviting of information assisting in the placing of any such bet or wager, if specified conditions are met; and (3) specified gaming activity conducted on Indian lands on July 31, 2003, using the Internet or other interactive computer service, with the approval of the State regulatory authority , without Tribal-State compact approval.
Grants Federal district courts exclusive jurisdiction to prevent or restrain violations. Sets forth civil and criminal penalties, including authority for State attorneys general to bring actions to prevent or restrain violations or threatened violations.
Limits relief granted against an interactive computer service. Specifies circumstances for the liability of any creditor, issuer, institution, operator, business, network, stored value product transaction, participant, or any interactive computer or telecommunications service. Authorizes appropriations.
(Sec. 4) Calls for the United States, in deliberations with a foreign governments, to: (1) encourage cooperation in identifying whether Internet gambling operations are being used for money laundering or other crimes; (2) advance policies that promote international cooperation in enforcement; and (3) encourage the Financial Action Task Force on Money Laundering to study the extent to which Internet gambling operations are being used for money laundering purposes.
(Sec. 5) Modifies Federal criminal code provisions on gambling to: (1) delete a limitation to solely wire communications; (2) specifically include satellite and microwave communications and communications from fixed or mobile sources; and (3) increase the penalty for unlawful transmission of wagering information.
Latest Major Action: 10/27/2003 Placed on Senate Legislative Calendar under General Orders. Calendar No. 346.


HR 2143 Unlawful Gambling Funding Prohibition Act

Introduced: 5/19/2003
Sponsor: Bachus [AL-6]
Cosponsors: Hooley [OR-5], Oxley [OH-4]
Summary of Bill: Unlawful Internet Gambling Funding Prohibition Act - Directs Federal functional regulators, within six months of this Act's enactment, to prescribe regulations requiring any designated payment system to establish policies and procedures reasonably designed to: (1) identify restricted transactions by means of code in authorization messages or other means and to block such transactions; and (2) prevent the acceptance of the products or services of the payment system in connection with a restricted transaction. Defines a "restricted transaction" as any transaction or transmittal to anyone engaged in the business of betting or wagering in connection with another person's participation in unlawful Internet gambling of credit, electronic fund transfers, checks, or the proceeds of any other form of financial transaction as regulators may prescribe. Requires such regulators and the Federal Trade Commission to enforce such regulations (under applicable law in the manner provided under the Gramm-Leach-Bliley Act) after considering specified factors concerning the extent of the violation, the history of compliance, and the feasibility and burden of implementing a remedy. Requires regulators to consider exempting restricted transactions if the regulators find that it is not reasonably practical to identify and block, or otherwise prevent, such transactions.
Provides that no provision of this Act shall be construed as affecting any law relating to, affecting, or regulating gambling within the United States
Latest Major Action: 6/11/2003 Referred to Senate committee.
Status: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.