Congressman renews effort to limit Internet gambling

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Thursday, Jan. 9, 2003 | 9:33 a.m.

WASHINGTON -- Rep. James Leach, R-Iowa, renewed legislation Tuesday making it a crime to accept credit cards, checks and wire transfers for Internet gambling.

Federal law-enforcement officials told Congress last year that online gambling could be an avenue for money laundering for drug dealers and even terrorists.

Internet gambling is illegal in all states, though the Nevada Legislature has taken steps to legalize Internet gambling so long as it doesn't violate federal law that bans wagering across state lines. However, Nevada gaming regulators have yet to approve Internet gambling in Nevada.

The House passed the legislation last year, but it failed to get to a vote in the Senate, where several Democratic lawmakers were said to be blocking final passage.

However, its chances of being enacted have improved this year since Republicans regained control of the Senate. The White House has also pushed for the bill.

Many of the 1,500 Internet gambling sites operate in offshore locations in the Caribbean and elsewhere, according to a 2002 House Financial Services Committee report. Lawmakers estimated 2002 revenues from online gambling to top $4 billion.