Rep. Frank Back to Games on Internet Gambling Law
by: Doug Carlson - Sep 16, 2008 - comment
One of the fiercest opponents of a ban on Internet gambling is back on mission to help Americans evade the law and empty their pocketbooks to offshore gambling sites. Rep. Barney Frank (D-MA) is poised to try his hand again at ramming through a bill that would block implementation of the widely supported Unlawful Internet Gambling Enforcement Act of 2006 (UGIEA), which creates tools to block financial transactions between U.S.-based customer accounts and offshore gambling merchants.
The House Financial Services Committee, chaired by Rep. Frank, is scheduled today to consider his Payments System Protection Act (H.R. 6870)—a bill that protects only the coffers of gambling sites operating outside the United States and their special interest groups. Left unguarded would be the millions of Americans trapped by addiction to online gambling and millions more children who are just clicks away from its snare.
The undeterred Rep. Frank has played this game before. In his last attempt, in June, he joined forces with Reps. Peter King (R-NY) and Ron Paul (R-TX) to try to assail UIGEA, but his committee killed the legislation before it could reach the House floor. Each of his multiple other efforts since 2006 has been met with defeat as well. But despite his defeated record, the congressman’s influence, combined with that of well-funded lobbyists, should not be underestimated.
Some of Rep. Frank’s allies have muddied the public’s understanding of Internet gambling with misinformation in hopes of turning the debate. Many Americans, for example, do not realize that UIGEA does not ban Internet gambling. Online gambling, as covered by a 1961 law on wireless communication, always has been illegal in the U.S. Prosecution of foreign companies profiting with a steady flow of American dollars, however, has been nearly impossible. UIGEA is simply the first significant means to enforce this illegal activity.
In 2006, when UIGEA was signed into law, it was not even controversial. The House approved it as a stand-alone measure with the support of 317 members before passing it 409-2 as part of a larger bill; the Senate followed with unanimous consent. Support also came from professional athletics. All the major sports associations—the National Football League, the National Basketball Association, the National Hockey League, Major League Baseball, and the National Collegiate Athletic Association—fought for passage of UIGEA, recognizing Internet gambling’s inherent means to destroy the integrity of sports.
Since regulations to implement UIGEA are still being finalized, its real effects are yet to be seen. But the blow struck to the bottom line of offshore Internet gambling companies in the immediate aftermath of its passage is a healthy indicator. Shares for the Gibraltar-based PartyGaming, the largest online gambling company, plunged 58 percent, wiping out $3.8 billion in stock the first day the exchange opened after Congress passed the measure. The company up to that point had generated 78 percent of its revenue from the U.S.
Internet gambling has placed a stranglehold on too many Americans to allow it to persist. Some have called it the crack cocaine for gamblers. One alluring click at a time, fortunes drain and families dissolve. UIGEA will go a long way toward breaking those chains of addiction. But its regulations should be given the chance for implementation and then vigorously enforced.
If you agree, please tell your representative to oppose any legislation that would undermine the Unlawful Internet Gambling Enforcement Act. Click here to see if he or she is on the House Financial Services Committee.
The Ethics & Religious Liberty Commission works to educate Americans about the growing crisis of gambling addiction and supports legislation such as the Unlawful Internet Gambling Enforcement Act to help protect citizens from falling into this dangerous trap. To learn more about this important issue, additional resources are available here. If your church is interested in purchasing bulletin inserts or other materials on gambling, please visit our online bookstore and erlc.com.
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