US Outlaws Online Gambling

imaginaryelf writes, "As reported earlier on Slashdot, in the closing hours of the US Congressional session on Friday, September 29, the Unlawful Internet Gambling Enforcement Act of 2006 (H.R.4411.RH) was attached to the Safe Port Act of 2006 H.R.4954.EAS. To the surprise of many, the bill passed both the House and the Senate, and Bush is expected to sign it into law this week. This effectively outlaws online gambling in the US, by way of making it illegal for credit-card companies to collect payments for bets. The financial markets punished the stock of online gambling companies as some prepared to pull out of the US entirely."

Comments

it's so sad...

[jimstapleton]

the the legislature of my country is so incompetant, to get something they want passed, they have to tack it on to something completely irrelevant.

Re:Sour Grapes

[Blob Pet]

Actually, many of the U.S.-based casinos have been advocating for regulated online gambling which would allow for the US government to tax the industry. Companies like MGM would like to open up gambling sites but can't. Even UK-based companies have stated that they'd be more than willing to pay taxes to operate legally in the US.

Not To Open A Can of Worms, But MMOG?

[aldheorte]

So, if I pay $15 a month to subscribe to a massively multiplayher game where I get some amount of starter virtual currency, and the game has as a subset of functionality a mechanism through with I can gamble my virtual currency, and a mechanism exists to transfer that virtual currency into real currency through eBay sales or some process officially allowed or even serviced by the massively multiplayer game maker, is my subscription illegal?

Re:Worse Problem

[Xentor]

I read through the text of the law (Yes, I'm very bored), and it looks like it defines wagers specifically as those that are based on chance (i.e. roulette, cards, etc) or a single competition (i.e. betting on a football game).

It excludes things that are based on statistical returns (They're allowing stuff like fantasy football), and a few other things.

So I don't think it covers the stock markets.

Yawn

[deblau]

(A) IN GENERAL- The term `unlawful Internet gambling' means to place, receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State or Tribal lands in which the bet or wager is initiated, received, or otherwise made.
(B) INTRASTATE TRANSACTIONS- The term `unlawful Internet gambling' shall not include placing, receiving, or otherwise transmitting a bet or wager where--
(i) the bet or wager is initiated and received or otherwise made exclusively within a single State;
(ii) the bet or wager and the method by which the bet or wager is initiated and received or otherwise made is expressly authorized by and placed in accordance with the laws of such State, and the State law or regulations include--
(I) age and location verification requirements reasonably designed to block access to minors and persons located out of such State; and
(II) appropriate data security standards to prevent unauthorized access by any person whose age and current location has not been verified in accordance with such State's law or regulations; and
(iii) the bet or wager does not violate any provision of the--
(I) Interstate Horseracing Act;
(II) Professional and Amateur Sports Protection Act;
(III) Gambling Devices Transportation Act; or
(IV) Indian Gaming Regulatory Act.
* * *
(E) INTERMEDIATE ROUTING- The intermediate routing of electronic data shall not determine the location or locations in which a bet or wager is initiated, received, or otherwise made.

Whatever. You can thank the boundaries of the Interstate Commerce Clause for defanging this beast. Expect gambling sites to set up bank accounts in each of the states where online gambling is legal under state law, and direct all traffic from gamblers in a state to servers in that state. This accounts for most if not all states.

All this law does is make internet gambling sites shell out a few (hundred) thousand dollars for server upgrades and a minor software patch. Yippee.

Re:hooray.

[mosch]

Question #1: "Should the federal government prevent Americans from playing poker?"

YES NO DON'T KNOW REFUSED
5% 90% 4.5% 0.4%
49 868 43 4

Question #2: "Should the federal government prevent Americans from playing poker in Las Vegas?"

YES NO DON'T KNOW REFUSED
5.5% 90.7% 3.3% 0.5%
53 874 32 5

Question #3: "Should the federal government prevent Americans from playing poker in Casinos on Indian Reservations?"

YES NO DON'T KNOW REFUSED
8.3% 86.6% 4.6% 0.5%
80 835 44 5

Question #4: "Should the federal government prevent Americans from playing poker for charitable fundraisers?"

YES NO DON'T KNOW REFUSED
8.1% 86.9% 4.4% 0.6%
78 838 42 6

-Page 1 of 2-

Question #5: "Should the federal government prevent Americans from playing poker on the Internet?"

YES NO DON'T KNOW REFUSED
18% 74.2% 7.4% 0.4%
174 715 71 4

Question #6: "Should the federal government prevent Americans from playing poker in the privacy of your own home?"

YES NO DON'T KNOW REFUSED
3% 94.7% 1.8% 0.5%
29 913 17 5

Question #7: "Do you believe the federal government should be managing Americans gambling behaviors on the Internet?"

YES NO DON'T KNOW REFUSED
26.9% 66.1% 6.4% 0.6%
259 637 62 6