House seen debating gambling bill next week

WASHINGTON (Reuters) – The full U.S. House of
Representatives is expected to debate next week legislation
that would attempt to ban Internet gambling, a $12
billion-a-year industry that gets half its revenue from
American gamblers, two Republican lawmakers said on Thursday.

The legislation to be debated blends two versions of bills
that have been offered by Rep. Bob Goodlatte of Virginia and
Rep. Jim Leach of Iowa, the two said in a statement.

Leach’s bill has been approved by both the House Financial
Services Committee and the House Judiciary Committee. It has
broad support among conservative and religious activist groups,
who want to keep gambling out of easy reach of minors.

The anti-gambling bill is expected to be debated by the
full House as early as Wednesday, a legislative aide said.

However, it remains unclear whether the Senate will pass
similar legislation as Congress scrambles to finish its work
before the November general elections. Arizona Republican Sen.
Jon Kyl has introduced a bill similar to Leach’s House bill but
it has languished in the Senate.

Investors in some British-based gaming companies such as
Party Gaming Plc and 888 Holdings have closely monitored U.S.
legislation.

Although the U.S. Justice Department says a 1961 law that
forbids interstate telephone betting also applies to the
Internet, the House lawmakers say their legislation would
clarify that point for prosecutors. It would also prohibit
gambling businesses from settling Internet wagers with credit
cards, checks or fund transfers.

“Gambling on the Internet has become an extremely lucrative
business,” Goodlatte said. “These offshore, fly-by-night
Internet gambling operators are unlicensed, untaxed and
unregulated and are sucking billions of dollars out of the
United States.”

An estimated 2,300 gambling sites now exist on the
Internet, the lawmakers said.