Lawmakers clamp down on illegal internet gambling

WASHINGTON -- The House Tuesday passed legislation to clamp down on illegal Internet gambling with the support of at least some lawmakers who wanted to shake off the specter of congressional scandal from the conviction of gambling lobbyist Jack Abramoff.

The bill, which now goes to the Senate, would enhance criminal penalties for Internet gambling businesses accepting payments through credit cards or electronic fund transfers. It also would require financial institutions to establish procedures for blocking these transactions. The imprisonment penalty would be raised from two to five years.

Rep. Marilyn Musgrave, R-Colo., who voted in favor of the bill, said a supporter of the bill, Rep. Robert W. Goodlatte, R-Va., first approached her by saying an earlier version was killed by Abramoff in 2000.

"That spoke volumes to me," Musgrave said.

Abramoff, who lobbied for casino and lottery interests, pleaded guilty to conspiracy and fraud charges connected to the 2000 purchase of a gambling boat fleet.

On the House floor prior to the 317-93 vote, Rep. Frank Wolf, R-Va., made an impassioned statement on the significance of the bill beyond concerns over Internet gambling.

"Outside lobbyists have manipulated this place," Wolf said. "This is an opportunity to reverse the manipulation."

Many Internet gaming sites may be legally set up offshore in foreign territories. However, placing wagers on these sites is illegal under federal and state laws, something many people don't understand, according to Colorado Attorney General John Suthers.

Suthers and Mississippi Attorney General Jim Hood co-sponsored a letter signed by 49 attorneys general encouraging Congress to do something about the problem of Internet gambling and its harm to society.

"This bill is what we had in mind," Suthers said.

The bill contains exemptions allowing interstate online wagering on horse races and online state lotteries. An amendment to strike these exemptions was defeated 114-297.

Colorado law, which prohibits online gambling, does allow participation in lotteries; live and off-track betting on horse and dog racing events; limited stakes ($5 per bet limit) gambling in casinos in Black Hawk, Central City, Cripple Creek and on tribal reservation land; and social gambling among friends.

To curb Internet gambling in the state, the Colorado Limited Gaming Control Commission prohibits businesses licensed in the casino industry in Colorado from being connected to Internet gaming sites that can be accessed by Colorado residents. Those that do would be stripped of their licenses, according to Suthers.

Dave Loftis, co-host of "The Wholecard," a weekly radio show on poker broadcast in Greeley, said he was disappointed with the outcome, criticizing what he called election-year tactics playing into the vote.

"This (bill) is part of the Republican Party's appeal to value voters," Loftis said.