February 3, 2003 - How sad that U.S. Rep. Jim Leach began the new session of Congress by re-introducing his bill attacking Internet gaming. The bill, now known as H.R. 21, seeks to block the
use in online gaming of credit cards, checks and other financial instruments of U.S. banks. Leach hopes to kill this industry by cutting off its financial support system.
“Internet gambling serves no legitimate purpose in our society,” Leach said in a statement. The millions of Americans who enjoy Internet gaming as a harmless form of recreation might not appreciate Rep. Leach defining for them what activities have a “legitimate purpose.”
The Congressman displays little regard for basic individual freedoms. His bill would deputize financial institutions to police the private activities of adult citizens.
The IGC commends Rep. Leach for his apparent concerns about problem gambling, but we believe the only effective way to deal with such social issues is to license and regulate online gaming. The U.S. tried Prohibition once before, and it didn’t work.
Furthermore, we take strong exception to the assertion that Internet gaming is a likely medium for money laundering, as the majority of Internet wagers are now processed in Canada, the United Kingdom, Australia and other countries with financial transparency laws similar to those of the U.S. Ironically, if enacted, the Leach bill would probably drive Internet wagers from the most transparent forms of settlement (i.e. credit card payments) to the least transparent.
Congress has tried to amend or repeal the law of supply and demand and the law of unintended consequences many times; never once has it succeeded. We doubt Mr. Leach's bill, even if enacted, will change this record.
As Ari Weinberg of Forbes.com commented when the Leach bill passed the House in the last session of Congress, “Given advances being made in online transaction software and monitoring, the legislation and its impetus show that Congress is moving backwards as technology and money move forward.” The bill, Weinberg concluded, “shows lack of foresight.”
The IGC urges Congress to consider another bill from last session that’s expected to be re-introduced this year: Rep. John Conyers’ bill to establish a commission to study how the federal and state governments might regulate Internet gaming.
Licensing and regulation will solve any problems associated with this new industry, while respecting individual liberty and privacy.
Formed in 1996, the IGC is the leading trade association for the international interactive gambling industry with its membership operating or supplying services to most of the reputable interactive sites on the World Wide Web. Based in Vancouver, Canada, the IGC champions fair and honest interactive gambling environments. To help parents protect their children, IGC members are encouraged to participate in the self-labeling system of the Internet Content Rating Association. The IGC has developed a Code of Conduct for members, and a program called Helping Hand to assist problem gamblers.
CONTACTS:
Rick Smith, Executive Director,
Keith Furlong, Deputy Director,
