Anti Goverment Gambling Act

Jason Opalinski

Professor Konkright

Federal Government 1205

30 August 2015        

Unlawful Internet Gambling Enforcement Act of 2006

      The Unlawful Internet Gambling Enforcement Act was signed into law October 13th 2006 by the United States of Americas 43rd President George W. Bush. The Unlawful Internet Gambling Enforcement Act was an An Act to prevent the use of certain payment instruments, credit cards, and fund transfers for unlawful Internet gambling, and other purposes. I will explain why the act was introduced to the house, the history of how this Act became a law, the parties involved to make this act a law and the United States citizen’s rights responsibilities pertaining to this law. Finally, I will also provide both personal and public opinion of this law.

 Why it was introduced

     The Unlawful Internet Gambling Enforcement Act initially started as the Internet Gambling Prohibition Act of 1999 sponsored by Arizona Republican senator Jon Kyl. There were major concerns that spawned the creation of this bill. The first concern was the easy access to gambling which would “exacerbate the temptation facing compulsive gamblers”. The National Gambling Impact Study Commission collected data from a Harvard Medical School meta-analysis that stated that five to seven percent of the U.S Population has either a gambling problem or pathological gambling addiction. (citizenlink.com) The Second concern was, it would be hard to verify the gamblers age online. The National Gambling Impact Study Commission stated the same study showed that 7.9 million American adolescents have a problem or pathological addiction to gambling. (citizenlink.com) the final and most concerning was possibility of money laundering due to anonymity of the clientele. According to the IMF and World Bank, and estimated $2.17 to $3.61 trillion is laundered annually for not only terroristic crimes but corporate crimes.(state.gov) In March 1999, while lobbyists were trying to gain supporters for each side of the proposed bill, it was placed on the suspension calendar. The bill failed to meet the two-thirds majority vote required by the suspension calendar and was rejected on July 18th 1999. (CRS Report for congress)

How it became a law

     Fast forward six years later, Republican representative from Iowa Jim Leach and Republican representative from Virginia co-authored what is now called The Internet Gambling Prohibition and Enforcement Act. (CRS Report for Congress) On November 18th, 2005 a bill called the SAFE Port Act was introduced by Republican Jim Leach. On July 11th 2006 the SAFE Port Act passed the house. On September 14th 2006 the SAFE Port Act passed the United States Senate. On all of those occasions the SAFE port Act bore no traces of the Unlawful Internet Gambling and Enforcement Act. The Act was reported by the joint conference committee on September 29th 2006. The Unlawful Internet Gambling Enforcement Act was submitted and attached to the SAFE Port Act at 9:29pm on September 29th 2006 by Republican Bill First from Tennessee. On September 30th, 2006 the last day before congress adjourned for the 2006 elections, the bill was approved and put into law on October 13th 2006. According to Frank Lautenberg, a Democratic Senator representing New Jersey stated “no one on the Senate-House Conference Committee had seen the final language of the bill before it was passed due to the fact it was read and agreed unanimously by the house.”(Rose 2006)

Unlawful Internet Gambling Enforcement Act: The Publics Rights and Responsibilities

     Both Companies and Citizens are held accountable for this law. The law “clearly” states The Unlawful Internet Gambling Enforcement Act of 2006 ("UIGEA") prohibits any person, including a business, engaged in the business of betting or wagering from knowingly accepting payments in connection with the participation of another person in unlawful Internet gambling including a business, engaged in the business of betting or wagering from knowingly accepting payments in connection with the participation of another person in unlawful Internet gambling. (federalreserve.gov) what that means is that a business cannot participate in ACH credit transfers, ACH debit transfers, pre-paid cards or stored value cards) with the purpose of internet gambling. The penalty for participating in such act could result in fines and jail time up to five years. (gamblinglaw.com) In June 2009 the U.S Department of Justice seized over $34 million belonging to over 27,000 accounts in the Southern District of New York Action Against Online Poker Players.( Richtel, Matt (2009-06-09)

 The Proponents of the Unlawful Internet Gambling Enforcement Act

     The public opinion of the Unlawful Internet Gambling Enforcement Act varies depending on what group is being asked. The proponents of the unlawful Internet Gambling Enforcement Act believe that the prohibition would protect vulnerable members of society such as the poor, elderly and minors.(heartland.org) Proponents believe that internet gambling would aid in the addiction  and cause economic problems within communities. William N. Thompson a professor of public administration at the University of Nevada stated that gambling is a drug like activity.(pbs.org) The American Psychiatric Association and the American Medical Associate recognize gambling as a diagnosable mental disorder.(Horn, Bernard pbs.org) In 1994, there were various experts who testified before the U.S. House of Representatives and advised the impacts that casino-style gambling activities had upon the criminal justice system, the social welfare, system, small businesses, and the economy (Congressional Hearing 1994). Utilizing legalized gambling activities as a strategy for economic development was thoroughly discredited during the hearing. (Kindt,John pbs.org)

 The Opponents of the Unlawful Internet Gambling Act

There is a large group of a pro-online gambling coalition that dubs themselves Coalition for Consumer and Online Protection. This group opposes the Unlawful Internet Gambling Enforcement Act. They believe that the prohibition will open the door to black markets. They believe an unregulated gambling site can prey on consumers without any legal recourse.(heartland.org) The coalition has hired former Ohio Republican representative Mike Oxley to be the spokesman as well as former California representative Mary Bono .(Palmer, Anna politico.com)  13 states already have some form of regulated gambling.(usatoday.com) Morgan Stanley has estimated that global online gambling may be worth more than $8 billion a year.(heartland.org) Opponents of the Unlawful Internet Gambling Enforcement Act believe that those states should make their own choices as to whether to allow online gambling, because doing so would bring in tax revenue to those states.