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Net providers shielded in U.S. House bill banning gambling on the Internet

Thursday, Nov. 4, 1999 | 11:42 a.m.

A House subcommittee voted 5-3 Wednesday to ban sports and casino gambling over the Internet while shielding Internet providers like America Online, At&T and MCI WorldCom from liability.

The measure approved by the House Judiciary Committee subcommittee on crime would make it illegal to place or receive bets on the Internet.

Anyone engaged in an Internet-based gambling business could be fined the value of the placed bet or $20,000, whichever is greater, and could face a maximum four-year prison sentence. A Senate panel has approved a similar measure.

Internet gambling could grow in several years to a $10 billion industry, said Rep. Bill McCollum, R-Fla., and chairman of the committee. It's now a $651 million industry, the FBI estimated this year.

"Online casino operators envision the day when the Internet will provide access to a 'virtual Strip' -- where gamblers who are tired of one casino can simply 'walk' down the virtual boardwalk into a different casino," said McCollum.

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