Letter from Rep. Goodlatte--HR4777's Sponsor

Thank you for contacting me regarding Internet gambling. It's good to hear from you. In recent years, illegal gambling on the Internet has exploded into a lucrative business that drains billions of dollars out of the U. S. economy each year and costs tens of thousands of jobs. In addition, illegal gambling serves as a vehicle for money laundering, undermines families, and threatens the ability of states to enact and enforce their own laws. Many of the illegal gambling sites attempt to avoid the application of United States law by locating themselves off-shore and out of our jurisdiction, providing a nearly undetectable harbor for criminal enterprise. These illegal, off-shore gambling websites are unlicensed, untaxed, and unregulated. Gambling is currently illegal in the United States unless regulated by the states. However, the development of the Internet has made gambling easily accessible. The negative consequences of online gambling can be as detrimental to the families and communities of addictive gamblers as if a bricks and mortar casino was built right next door. Online gambling can result in addiction, bankruptcy, divorce, crime, and moral decline just as with traditional forms of gambling, the costs of which must ultimately be borne by society. In addition, the Federal Bureau of Investigation and the Department of Justice have testified that Internet gambling serves as a vehicle for money laundering activities, and can be exploited by terrorists to launder money. In order to bring the current prohibition against interstate gambling up to speed with the development of the Internet, I introduced H.R. 4777, the Internet Gambling Prohibition Act. This legislation cracks down on illegal gambling by updating current laws to cover all forms of interstate gambling and account for new technologies. Under current federal law, it is unclear whether the primary federal law dealing with gambling, the Wire Act, prohibits using the Internet to operate a gambling business. The Internet Gambling Prohibition Act updates and stregthens current law in four main ways. First, it updates the Wire Act to state clearly that the prohibition against interstate gambling includes all forms of gambling such as online poker and slot machines, not just sports-related bets. Additionally, it updates the Wire Act technologically. The Wire Act was written years ago before the Internet existed, so the Internet Gambling Prohibition Act brings the law up to date with new technologies like the Internet and other ways of communicating, such as wireless and satellite capabilities. Third, my legislation makes it a criminal offense for a gambling business to accept electronic funds transfers and other forms of payment. This provision is meant to dry up the money supply that keeps these illegal gambling businesses in operation. Finally, my legislation increases the maximum penalty for violations from two to five years in prison. While this legislation cracks down on illegal gambling across state lines, it protects each State's authority to continue to authorize and regulate gambling within their borders, as long as there are tight controls in place to ensure that gambling does not extend beyond their borders or to minors. I introduced the Internet Gambling Prohibition Act on February 16, 2006, along with 115 bipartisan cosponsors. This legislation was referred to the House Judiciary Committee. No further action has taken place. Rest assured I will keep your views in mind as this legislation moves through Congress. I appreciate you taking the time to contact me. I feel it is important to keep an open line of communication so I can best serve the interests of the 6th District. I hope you will continue to be in touch as the 109th Congress debates issues of importance to the United States. Again, thanks for the benefit of your comments. Please feel free to contact me whenever I may be of assistance. Sincerely,Bob GoodlatteMember of Congress