Internet gaming ban still unlikely this year

Benjamin Grove

Thursday, Oct. 31, 2002 | 11:13 a.m.

WASHINGTON -- It's not likely that legislation banning Internet gambling will pass this year, despite prodding from the White House.

"I urge you to consider this legislation before the year is out and put an end to this criminal enterprise," Lawrence Lindsey, assistant to the president for economic policy, said in a three-paragraph letter sent this week to Senate Majority Leader Tom Daschle, D-S.D.

Internet gambling is booming in America, although it is technically illegal under decades-old legislation banning wagers over telephone wires. But laws are rarely enforced and 1,800 sites are flourishing, according to Lindsey's estimate.

Many website operations are based outside the United States, beyond the reach of U.S. law.

The House Oct. 1 passed a bill that takes aim at the cyber casino industry by banning methods of wagering, such as credit cards, checks and wire transfers. Nevada's House members, Reps. Shelley Berkley, a Democrat, and Republican Jim Gibbons supported the bill.

But the Senate has not signalled an interest in passing the legislation when it returns for a lame-duck session after the elections. Several senators have placed anonymous "holds" on the legislation, which would have to be removed before any action were taken.

The holds were not placed by Daschle or Sen. Harry Reid, D-Nev., their aides said. Although it's unlikely, there's still a possibility the bill will pass, Reid spokeswoman Tessa Hafen said.

Still, Lindsey goaded senators to act when they return next month.

"Congress has heard countless heartbreaking stories of families torn apart, careers ruined and credit ratings destroyed by illegal Internet gambling," Lindsey wrote. "The lure has proven to be irresistible to the most vulnerable in our society -- our youth and problem gamblers."

Citing the Department of Justice and Federal Bureau of Investigation, Lindsey also said Internet casinos can be used for money laundering by organized crime rings and "potentially, for international terrorism."

Internet gambling industry officials say there is no evidence cyber casinos have been used to launder money. Industry leader Sue Schneider, chairwoman of the Interactive Gaming Council, has long said the government should regulate, not ban, Internet gambling websites.

The new Congress, which convenes in January, would have to start over with Internet gambling ban legislation if lawmakers do not approve it this year.