Tuesday, July 11, 2006

Online Gambling Banned using credit cards

House OKs bill to rein in online gambling

By NANCY ZUCKERBROD, Associated Press Writer

WASHINGTON - The House passed legislation Tuesday that would prevent gamblers from using credit cards to bet online and could block access to gambling Web sites. The legislation would clarify and update current law to spell out that most gambling is illegal online. But there would be exceptions — for state-run lotteries and horse racing — and passage isn't a safe bet in the Senate, where Republican leaders have not considered the measure a high priority.

The House voted 317-93 for the bill, which would allow authorities to work with Internet providers to block access to gambling Web sites.

Critics argued that regulating the $12 billion industry would be better than outlawing it. Said Rep. Barney Frank (news, bio, voting record), D-Mass., "Prohibition didn't work for alcohol. It won't work for gambling."

The American Gaming Association, the industry's largest lobby, has opposed online gambling in the past but recently backed a study of the feasibility of regulating it.

The Internet gambling industry is headquartered almost entirely outside the United States, though about half its customers live in the U.S.

My take: Once they find a way to tax it and enable U.S. customers to partake in it via licensed, well known operators here in the U.S. it will happen.....This just buys time to BK the overleveraged foreign competition, cause massive chaos in the space and then, once they lose a few MAJOR WTO/international trade cases they will open it back up but, guess what, the major U.S. casino operators will be there linking online and offline gambling together, thereby keeping the bets with U.S. operators and the $$$ from flowing AWAY from U.S. coffers and INTO the U.S. as foreign gamblers will fall over themselves to win trips to Vegas and other places :)

Dan Ross