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By JESSE J. HOLLAND, Associated Press Writer
WASHINGTON - The House voted Tuesday to exempt American gambling operations from legislation that would ban gamblers from using credit cards, checks or electronic fund transfers at illegal offshore Internet casinos.
Some lawmakers said the exemption — while aimed at protecting existing legal gambling operations like horse racing, lotteries, dog racing — could expand American gambling operations to the World Wide Web.
The vote banning Americans from using credit cards, checks and electronic fund transfers to pay for online betting transactions passed 319-104, a victory as easy as it was predictable.
"Offshore illegal Internet gambling has been linked to organized crime and terrorism and we're not going to shut it down?" said Rep. Darlene Hooley (news, bio, voting record), D-Ore.
The vote was much tighter on the exception in the legislation for "any lawful transaction with a business licensed or authorized by a state" — it passed 237-186.
Opponents said the legislation's broad language opened the door to U.S.-based Internet gambling.
"A carve-out for horses and dogs and lotteries and jai-alai and Lord knows what else means that people will be able to use the Internet and use their credit cards and place bets and lose a whole lot of money," said House Judiciary Chairman James Sensenbrenner, R-Wis.
Supporters said that passing the ban without the exception would practically kill horse racing — which relies heavily on credit card transactions — and that states always have had the right to regulate gambling within their own borders.
A total ban "would prevent a state from accepting paramutual betting or one of any other forms of gambling that have been recognized and declared permissible by state law," said Rep. Artur Davis, D-Ala.
It is not known when or whether the Senate will consider its version of the bill, which also has the American gambling carve-outs.
The General Accounting Office (news - web sites), in a report last year, called Internet gambling "a fast-growing industry" with estimated 2003 revenues of more than $4 billion. Virtually all Internet gambling operations — the GAO estimated that there are 1,800 — are based outside the United States, posing a problem for enforcement.
The House bill carries no criminal or civil penalties. House supporters were forced to take out any reference to punishment to keep it away from Sensenbrenner and his House Judiciary Committee (news - web sites), which successfully eliminated the carve-out for American gambling establishments in committee.
Instead, it zoomed through the Financial Services committee and to the full House for passage. Supporters say they plan to place criminal penalties back into the bill once it reaches a House-Senate conference committee.
WASHINGTON - The House voted Tuesday to exempt American gambling operations from legislation that would ban gamblers from using credit cards, checks or electronic fund transfers at illegal offshore Internet casinos.
Some lawmakers said the exemption — while aimed at protecting existing legal gambling operations like horse racing, lotteries, dog racing — could expand American gambling operations to the World Wide Web.
The vote banning Americans from using credit cards, checks and electronic fund transfers to pay for online betting transactions passed 319-104, a victory as easy as it was predictable.
"Offshore illegal Internet gambling has been linked to organized crime and terrorism and we're not going to shut it down?" said Rep. Darlene Hooley (news, bio, voting record), D-Ore.
The vote was much tighter on the exception in the legislation for "any lawful transaction with a business licensed or authorized by a state" — it passed 237-186.
Opponents said the legislation's broad language opened the door to U.S.-based Internet gambling.
"A carve-out for horses and dogs and lotteries and jai-alai and Lord knows what else means that people will be able to use the Internet and use their credit cards and place bets and lose a whole lot of money," said House Judiciary Chairman James Sensenbrenner, R-Wis.
Supporters said that passing the ban without the exception would practically kill horse racing — which relies heavily on credit card transactions — and that states always have had the right to regulate gambling within their own borders.
A total ban "would prevent a state from accepting paramutual betting or one of any other forms of gambling that have been recognized and declared permissible by state law," said Rep. Artur Davis, D-Ala.
It is not known when or whether the Senate will consider its version of the bill, which also has the American gambling carve-outs.
The General Accounting Office (news - web sites), in a report last year, called Internet gambling "a fast-growing industry" with estimated 2003 revenues of more than $4 billion. Virtually all Internet gambling operations — the GAO estimated that there are 1,800 — are based outside the United States, posing a problem for enforcement.
The House bill carries no criminal or civil penalties. House supporters were forced to take out any reference to punishment to keep it away from Sensenbrenner and his House Judiciary Committee (news - web sites), which successfully eliminated the carve-out for American gambling establishments in committee.
Instead, it zoomed through the Financial Services committee and to the full House for passage. Supporters say they plan to place criminal penalties back into the bill once it reaches a House-Senate conference committee.
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