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U.S. House Clears Anti-Internet Gambling Bill

matr0x_x writes "The U.S. has just moved one step closer to banning all Internet gambling sites when the US House of Representatives cleared an anti-Internet gambling bill yesterday. The bill is against a World Trade Organization ruling last August that stated the US must not block online gambling sites based overseas." From the article: " The bill, cleared by voice vote in the House Financial Services Committee, would prohibit a gambling business from accepting credit cards, checks, wire transfers and electronic funds transfers in illegal gambling transactions. Unlawful gambling, under the legislation, would include placing bets on online poker sites, for example, and any other online wager made or received in a place where such a bet is illegal under federal or state law."

28 of 283 comments (clear)

  1. How it's written is what matters by JehCt · · Score: 5, Insightful

    There's a big difference between blocking sites, and making it illegal for those sites to use the US financial system to collect illegal wagers from within US jurisdiction. So long as the bill is written correctly, there should be no problem with WTO, and no problem with enforcement.

    1. Re:How it's written is what matters by Anonymous Coward · · Score: 5, Funny

      Fifty bucks says it's doesn't pass House debate

    2. Re:How it's written is what matters by Gorm+the+DBA · · Score: 5, Interesting
      For someone with more accounting/legal background...would anything keep me from opening, say a Bank of England account, funding that account via legal methods, using said account for various normal activities (ie debiting my groceries, etc) then when I want to fund a poker account using the funds from that account to do so?

      I wouldn't be using the US financial system to fund the account, it would be my British (where this is legal, regulated, and presumably taxed) account, transferring money to a British online casino (pokerstars, for example). I would be using US wires to notify them to do this, but I'm not notifying them to do anything illegal (under their laws), so not running afoul of wire statutes...

      Would this work? If so, I can see a huge business opportunity for overseas banking for the little guy, as opposed to the big corporation which uses a similar dodge to avoid taxes.

    3. Re:How it's written is what matters by HappyDrgn · · Score: 4, Funny

      Fold...

    4. Re:How it's written is what matters by TheScottishGuy · · Score: 4, Informative

      nothing really to stop you, except the difficulty involved in actually opening a british bank account, I had to spend almost 2 years in the uk recently and the hassle involved in opening an account is insane, and that's for someone with a UK passport who can walk into the branch. I was getting an apartment at the same time and the number of times i heard "well we can't hook up electricity until you have a bank account" or "we need a utility bill to open an account" was just nuts.

    5. Re:How it's written is what matters by joe545 · · Score: 5, Informative

      British banks generally require proof of residence (council tax or utility bills) to open a UK bank account so as to make life harder for money launderers, so this method won't be as easy as you think it is. Perhaps other countries (tax havens perhaps) have more lax banking laws which would make offshore gambling accounts feasable for the masses.

      Also, members of the public are not normally eligible for an account with the Bank of England as it is more of a national financial institution (like the Federal Reserve in the USA) controlling national interest rates etc rather than a normal bank.

    6. Re:How it's written is what matters by cayenne8 · · Score: 5, Insightful
      Geez....why write the thing at ALL???

      When oh when will we be able to get people in govt. that will understand that if you're 18/21, you are a freaking ADULT, and can decide for yourself matters like these?

      I am so fscking tired of the government trying to legislate morality and behavior.....

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  2. The way I see it by matr0x_x · · Score: 5, Insightful

    When the US doesn't directly profit from the gambling (national lottery, Las Vegas economy, etc.) they try to get rid of it stating it is "immoral".

    --
    LINUX ONLINE POKER: Linux Poker
    1. Re:The way I see it by MindStalker · · Score: 3, Funny

      Funny site.. quoted from the end..
      Lots of Linux users want to play Linux casino games but simply do not know where to play. With the Linux Online Casino (888) you can play Linux slots, Linux blackjack, Linux Black Jack, Linux video poker and other Linux casino games. We are commited to Linux online poker players who want to play Linux Internet poker. We provide the best no download linux poker software. The sites listed on this page are the best places to play online poker for Mac where people can receive generous Linux poker bonuses!

      Way too many uses of the word Linux, and the find/replaced screwed up once and left Mac in there.

    2. Re:The way I see it by argoff · · Score: 4, Interesting

      IMHO, this bill has nothing to do with gambling. It has to do with controlling the flow of offshore funds and gambling is just a nice sounding excuse sorta like terrorisim and the war on drugs. The real fear of the government is that people will protect their rights because it is so easy to move money and funds offshore outside IRS controll. In the old days, the war on drugs was enough to hold most average people in check, but now with the information age they need to resort to more desperate measures.

    3. Re:The way I see it by bigpat · · Score: 3, Insightful

      The state run lottery is supposed to fund education. Where does the profits from privare gambling go? I am not saying I'm for state run lottery, just that the proceeds go to something most people would like to see funded better.

      Well, if it was legal in the US then a percentage of the profits would be collected as income taxes, rather than being forced overseas, and could be used for government purposes such as education or blowing up things or whatever floats your boat.

      Casinos generate a lot of taxes for State and Federal governments, this legislation strikes me as mis guided morality crossed with protectionism of the casinos and State lotteries.

    4. Re:The way I see it by Raven_Stark · · Score: 3, Insightful

      I don't gamble. However the control freaks in D.C. have gone beyond pissing me off with this crap and all the other loads of bull. I've been toying with the idea of becoming a citizen of another country. I seem to get a little more serious about it every day.

      Am I the only one thinking along those lines? Can anyone recommend a country? My ideal country wouldn't be hot, reasonable taxes, lowish cost of living, lots of freedom, easy immigration laws.

      --
      http://www.marxist.com/
    5. Re:The way I see it by Best+ID+Ever! · · Score: 3, Insightful

      For those who are addicted to gambling, I doubt they get the same high playing lotto as they do betting on college basketball games. That might be a second reason to ban internet gambling.

      Many state governments make money from horse racing, including bets placed over the internet. Not surprisingly, online horse racing is excluded from the ban.

      And if I'm going to be taxed buying a book at Amazon, why shouldn't people be taxed who want to gamble in off-shore sites?

      Gambling income is already taxed, no matter where the site is.

  3. Once again by LordBodak · · Score: 3, Insightful
    Our wonderful government sticking its nose where it doesn't belong.

    Contact your Reps and tell them to kill this crap.

    --
    LordBodak's journal.
  4. Bill actually clears the House Financial Services by j_rhoden · · Score: 5, Informative

    Not the the bill actually cleared the House Financial Services Committee, not the House as the headline says. This means that it will go before the full House for debate.

  5. Middle-Earth Bowl 2006 by Itninja · · Score: 5, Funny

    The legislation carves out some exceptions, including wagering on horse races, governed under another U.S. law, and fantasy sports.

    Gimme 10 G's on the Shire Hobbits in the 3rd [movie].

    --
    I judt got a nre Kinesis keybiartf so please excusr ant egregiou typos.
  6. There's nothing in it for them-- by Tominva1045 · · Score: 5, Insightful



    If the government could find a way to track it and then TAX it this would not be an issue.

    This is already done with alcohol, tobacco, and tangible items.

    Because they cannot capture the technology genie in a bottle they can't effectively tax it.

    And there are plenty of lobbyists working for taxable gambling interests who have issue with the wild-west of internet gambling as well.

    --
    Cogito Ergo Sum
  7. All forms of gambling? by NiteShaed · · Score: 5, Funny

    How does this affect the *really* big gambling sites, like NASDAQ and the NYSE?

    Ohhhhhh, not *that* kind of gambling....silly me.

    --
    Some bring out the best in others, some the worst. Some bring out far more.
    1. Re:All forms of gambling? by EvanED · · Score: 4, Funny

      Gambling is a game of luck

      Tell that to the people who play in the big poker competitions. See what they have to say about that.

  8. The funny bits by Billosaur · · Score: 4, Insightful
    Major professional sports organizations supported the legislation, including the National Football League and Major League Baseball, saying in a joint statement that sports betting "threatens the integrity of our respective sports."

    Buhwahahaha!! Can you say steroids?!? Can you say overblown contracts?!? There can't be a threat to something they don't have.

    A group called the Poker Players Alliance opposed the legislation as well.

    The Poker Players Alliance - a stalwart group of poker-playing heroes, determined to defend truth, justice, and the right to draw to an inside straight!

    --
    GetOuttaMySpace - The Anti-Social Network
  9. Let me get this straight by hackstraw · · Score: 5, Interesting

    The bill, cleared by voice vote in the House Financial Services Committee, would prohibit a gambling business from accepting credit cards, checks, wire transfers and electronic funds transfers in illegal gambling transactions. Unlawful gambling, under the legislation, would include placing bets on online poker sites, for example, and any other online wager made or received in a place where such a bet is illegal under federal or state law.

    So, today, its legal to do money transfers for illegal gambling?

    So, today, in my state, the government is the only legal gambling outfit? (lottery)

    So, its illegal for me to do business in another country according to their laws?

    I don't gamble beyond retirement funds, insurance, and whatnot.

    Here is interesting, and typical situations from those that "win" the lottery: http://moneycentral.msn.com/content/Savinganddebt/ Savemoney/P99649.asp

    In the end, nothing will change. Offshore gambling will be no different.

  10. Don't bother... by C3ntaur · · Score: 3, Insightful

    ...Unless you have tens of thousands of dollars to make a bribe ("campaign contribution"). That's how it works these days. Better to contact your favorite online casinos and let them pay the bribe for you.

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    Loading...
  11. Encouraging money laundering... by tansey · · Score: 5, Interesting

    All this is going to do is encourage people to forgo using the direct deposit features most sites offer, opting for indirect funds deposits.

    Right now, most sites offer the ability to write an e-check directly from a player's bank account to the poker site. However, virtually all sites also offer deposit via Neteller or Firepay. Since the latter method is not traceable since the 2 companies are not based in the US, players will just opt to use that method now.

    So what this bill is effectively doing is encouraging people to launder how they cash in and out of poker sites. It will do nothing to stop people from actually playing.

  12. RTFA by kraada · · Score: 4, Informative

    Doesn't the POSTER even RTFA these days? This bill cleared the committee. In fact, there's a line in the article which states:
    "The bill now moves fo the House floor for consideration."

    Not that it's impossible it will pass anyway, but please guys, get it right. It's not that hard.

  13. This is why Congress will be changing soon.... by i_want_you_to_throw_ · · Score: 3, Interesting

    There is way too much puritanical bullshit going on with Congress and their attempt to bring on their desired theocracy. Problem is they are trying to do it a little too fast. Bill passes, who gives a shit? It's not like the US controls the internet and it's a token gesture. If there were an organized online gaming lobby that could pay off Congressmen this would have never seen the light of day. The US has the best government that money can buy. They are so out of touch with the mainstream (Terri Schiavo anyone?) that a major realignment is going to happen hopefully with the 2006 elections.

    Like the passage of the DMCA, it's just another example of a stupid congress that tries to legislate something that it knows nothing about.

  14. From the summary... by dtsazza · · Score: 4, Insightful
    The U.S. has just moved one step closer to banning all Internet gambling sites (my emphasis)

    Really? This is another example of jurisdiction over the internet being called into question. My first though on reading the article was whether restrictions would apply to the casino, the gamblers or both. I'd imagine they'd almost certainly apply to the casinos - make it illegal for casinos based on servers in the US to accept electronic payment - but would it also be illegal for US citizens to place bets?

    FTFA:

    By making it illegal to accept payments from people who live where federal or state law prohibits wagering, the legislation would impact offshore gambling Web sites used by many Americans to place bets.

    I don't see how this works. If a casino is outside the U.S's jurisdiction, they shouldn't be able to be held to any U.S. laws. Sure, you can outlaw this behaviour by making it illegal for a citizen to place a bet, or more likely by forbidding U.S. financial services (e.g. banks) from processing the request, but surely you can't affect those to whom U.S. laws don't apply?

    Or perhaps I'm wrong, and you can - in which case, I'm worried about the precedent that would set. Is there a limit to the extent a country can create laws that affect those who are 'unaffected' by that country's laws? To a certain extent it's reasonable, but since this case involves two jurisdictions, with the casino outside the U.S.' jurisdiction and the gambler essentially going to the virtual casino to do business, it seems unreasonable. It's like the U.S. making it illegal for Mexican casinos to allow Americans to gamble there...

    --
    My, that was a yummy potato!
  15. Ah, the Great Land of Freedom by aphoenix · · Score: 3, Interesting

    The great land of freedom seems to be moving much more towards a "freedom from" instead of "freedom of". I am greatly saddened by this - what was once one of the best places to live in the world is becoming a place of limitations and loopholes. They have lost most of their credibility with the rest of the world because of their hypocritical stances; "freedoms" are claimed, but not often given, "peace" is desired, but war follows. Online gambling is becoming prohibited, but the most American city on the planet is Las Vegas, the city of excess.

    This is the problem that happens when old men who are scared of anything new make decisions that affect other people. I am confident that the main problem with online gambling is that it is harder for the government to regulate than meatspace gambling. When the pie becomes virtual, it's harder for regulators to get their piece.

    I'm not a proponent of online gambling (or gambling in general, though I do participate in the occasional poker tournament or hockey pool), but I think that this sort of regulation is a little ridiculous. Legislate elsewhere, O Government, where you can be beneficial to society. Why not start on the patent system? Why not figure out how to respond to natural disasters? Why not just about anything else?

    The biggest problem here is that most of the politicans making decisions like this are old men that tend not to understand what they are making decisions about. The great hope for actual freedom in the USA is that, in time, the people will start to become more acclimatized to technology and will be able to make more informed decisions about the uses thereof.

  16. Since Prohibition worked so well... by UttBuggly · · Score: 3, Interesting

    ...this new legislation will certainly stop all that evil poker playing, won't it?

    Most credit card companies quit processing direct transactions to PokerStars, Ultimate Bet, and Full Tilt in the last 12-18 months. I did find some local banks' debit cards will work on all 3 of those, but no majors like Visa and MasterCard.

    And as some have pointed out, FirePay and other indirect transactions will not be affected.

    The stupidity of this is that several major US casinos had on-line poker business plans in the works only to see the feds rain on their parade. If you had a choice to play online poker with a off-shore site or a "branded" U.S. site like Harrah's, which would you choose?

    The casinos would almost certainly give incentives and freebies for on-line players to visit their brick and mortar (or plastic and neon, if you prefer) locations, helping local economies while raking in TAXABLE revenue from both.

    This is a mostly useless law that will do little to impact on-line gaming in the U.S. (unless of course they contract the R.I.A.A. to kick in grandma's door while she's playing .5 / .10 cent No Limit on PartyPoker)

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    I am my own gestalt.