House passes bill to relax Internet gambling restrictions Online gamblers in the U.S. may be rejoicing soon By Jacqui Cheng | Published: September 18, 2008 - 11:54AM CT Internet gambling may be making a comeback here in the US, at least as financial services are concerned. The House Committee on Financial Services has approved a new bill--HR 6870, or the Payments System Protection Act--that seeks to offer relief to financial institutions that are currently barred from processing payments made to online gambling sites. If approved by the Senate, Americans will find one of the biggest online gambling restrictions removed. The new bill would put off implementation of the Unlawful Internet Gambling Enforcement Act of 2006. The 2006 legislation attempted to address online gambling by prohibiting wire transfers, payment system instruments, and credit cards from being used as payment methods for everything online but a small selection of wagers (horse races, mostly). This forced some online ventures, like the ever-popular Texas Hold 'Em poker sites, to take a major hit as banks and financial institutions were barred from letting users pay to play. The legislation also targeted offshore gambling sites that were aimed at American users. Opponents of the Unlawful Internet Gambling Enforcement Act long argued that attempting to ban online gambling would be futile because of the sheer number offshore sites that are happy to accept American money, and it's near impossible to try and strong arm other countries into complying with US law. In fact, the World Trade Organization made it clear that it wasn't happy with the US stance against online gambling, saying that the US discriminates against WTO member countries by treating US-based horse racing differently than offshore gambling sites. According to the WTO, the US doesn't have the right under the General Agreement on Trade Services to limit such services from other countries. More recently, the Remote Gambling Association has also taken issue with US enforcement against Europe-based sites. The gambling industry in Europe had first petitioned the European Commission earlier this year to begin an investigation into whether the US was targeting EU companies for enforcement of the 2006 law while allowing US continue operations, and now the case may soon move onto the WTO. It looks very much as if this matter will... be sent to the WTO at the end of the commission's investigation, Remote Gambling Association counsel Lode Van Den Hende told Reuters. The House Committee is attempting to stave off further WTO action with the newly-proposed legislation, in addition to giving citizens a little more of their online freedom back. Americans will once again be able to easily play online poker with real money, although gambling on sports (with the exception of jai-alai, horse, and dog racing) will still remain illegal. Adults are entitled to do with their money what they want to do, Committee Chairman Representative Barney Frank (D-MA) said when explaining the introduction of the bill, according to InformationWeek. The full House of Representatives may vote on the bill as early as next week.
Last edited by a moderator:
