Providing For Consideration Of H.R. 4411, Internet Gambling Prohibition And Enforcement Act
Mr. Speaker, I thank the gentleman from Georgia (Mr. Gingrey) for his generously yielding me this time. I rise in strong support of this rule reported out of the Rules Committee and of the underlying legislation, which I have been pleased…
Mr. Speaker, I thank the gentleman from Georgia (Mr. Gingrey) for his generously yielding me this time.
I rise in strong support of this rule reported out of the Rules Committee and of the underlying legislation, which I have been pleased to introduce along with the gentleman from Iowa (Mr. Leach), the gentleman from Virginia (Mr. Boucher), and more than 150 other Members of the House to address something that is long overdue, and that is modernization of our laws, our Federal laws, dealing with gambling, particularly what is referred to as Internet gambling.
This is a scourge on our society. It causes innumerable problems. Historically, gambling in the United States has been illegal unless regulated by the States. But Internet gambling ignores the laws of the 50 States, which vary each one compared to the next. Some States, like Utah, ban all forms of gambling. Other States, like Nevada next door, legalize a great many forms of gambling. This legislation does not interfere with that, but it addresses the now hundreds and hundreds and hundreds of offshore sites that are sucking billions of dollars. The latest estimate is a $12 billion industry with more than half of that coming out of the United States illegally, unregulated, untaxed.
Many like me who are opposed to gambling are concerned about the family problems. I have one family in my district whose son committed suicide because of debts run up on the Internet
due to gambling. Many are aware recently of the student at Lehigh University who ran up significant gambling debts and then robbed a bank in order to try to pay those off.
Those anecdotal evidences simply help to point out what is a magnifying problem of family problems, bankruptcy problems, problems with minors gambling, problems with addiction to gambling, problems with organized crime's being involved in gambling, all of which goes completely out of the purview of the States, which have jurisdiction over gambling in the United States.
So as a result of that, 48 out of 50 of our State attorneys general and the U.S. Justice Department and many other organizations, all the major sports organizations of the United States, many family organizations, many religious organizations, have come to the Congress asking for this legislation, asking to modernize the Wire Act, asking to take steps, as Congressman Leach has ably done in his legislation coming out of the Financial Services Committee, to enable the Treasury Department, working with law enforcement, working with the financial industry in this country, to see that this flow of money going out to these sites is cut off.
This legislation accomplishes those goals. It is supported by the National Collegiate Athletic Organization that is concerned about the proliferation of sports betting on the Internet and the effect that it is having on their ability to keep these games fair and honest. We have had scandals in the past with regard to betting on sports. And all of the major sports organizations in the country, the National Football League, Major League Baseball, the National Hockey League, the National Basketball Association, have joined with the NCAA in supporting this legislation. But other groups, the Family Research Council, Focus on the Family, Advance USA, Eagle Forum, the United Methodists, Southern Baptists, and many, many other religious organizations and family organizations have joined in support of this effort to address this problem. And it is my hope that the House today will pass this legislation.
In the process it is very, very important that the amendment that has been made in order under the rule be defeated because this is, most clearly, a poison pill amendment. This amendment is designed to take away the carefully crafted legislation, the careful negotiations with the States to make it clear that the Congress is not attempting to interfere with the activities of the States that take place completely confined within their borders. This addresses interstate gambling on the Internet, and it addresses offshore gambling on the Internet. And this amendment would take out of the legislation those carefully crafted provisions and would effectively gut the bill and defeat the cooperative effort that the Congress has been engaged in with the States, with the State attorneys general, with the Justice Department, and with others. So I would urge my colleagues to support the legislation and to defeat the amendment.
The legislation clarifies the Wire Act, the 1961 statute that made it a Federal felony for gambling businesses to use wire communication facilities to transmit bets or wagers or related money in interstate or foreign commerce. The Wire Act did not contemplate the Internet or wireless communications devices and is ambiguous as to whether it applies to only sports-related gambling or all forms of gambling. The bill updates the Wire Act to clarify that it covers all types of gambling and all types of communication facilities.
H.R. 4411 also increases the maximum penalty for violations of the Wire Act from 2 to 5 years in prison and explicitly preserves the right of the States to regulate gambling that occurs solely within State borders. And the bill cuts off the flow of money to Internet gambling Web sites by regulating payment systems. The Department of the Treasury and the Federal Reserve will jointly develop policies and procedures for identifying and preventing financial transactions related to illegal Internet gambling.
Payment systems will be required to comply with these regulations. Even when criminal law cannot be enforced, the Federal Government's jurisdiction over financial systems can nevertheless cut off the money sources for these illegal businesses.
The bill authorizes State and Federal law enforcement to seek injunctions against persons who facilitate illegal Internet gambling, even when the person is not criminally liable; and when deliberating with foreign governments, the U.S. Government is exhorted to advance international cooperation in law enforcement efforts against illegal gambling and related money laundering. The Secretary of the Treasury will report to Congress about these efforts.
Now, Mr. Speaker, there is another aspect of this legislation that many people are very familiar with, and that is that 6 years ago the predecessor to this legislation was killed on the floor of this House, and subsequently in another Congress in the Judiciary Committee, based upon the misleading representations and the flow of enormous sums of money related to lobbying activities of one Jack Abramoff, who has been widely reported in coverage in the Washington Post and elsewhere regarding the activities that he and others carrying his water, his dirty laundry, engaged in to misrepresent the purposes of this legislation and to defeat it.
Many in this House are very determined that they have the opportunity today to clear the record, to purge the smear on the Congress that was placed on it by these actions; and Mr. Speaker, I urge my colleagues to take full advantage of that opportunity to do today what should have been done back then when this industry was much smaller. It has quadrupled in size since then, and we need to make sure that this legislation passes this House here today.
Mr. Speaker, I urge my colleagues to support the legislation, defeat the amendment and support the rule.
Mr. Speaker, will the gentleman yield?
Mr. Speaker, I thank very much the gentleman for yielding. I want to be very, very clear about this. This legislation is very, very similar to the legislation that Jack Abramoff helped to defeat. He in no way supports it, number one. Number two, there is no carve-out in this legislation for horse racing or for lotteries.
That has been misrepresented time and time again. That is exactly the device, that is exactly the argument that Jack Abramoff used to defeat this legislation twice before. So to make the argument again I think is entirely wrong; it is entirely misleading. The fact of the matter is that the horse racing industry has a separate statute, the Interstate Horse Racing Act, and this legislation does nothing to enhance that legislation nor to repeal it.
The Justice Department negotiated very carefully the language that preserves their right to proceed against the horse racing industry if they choose to do so, because they maintain that separate statute, the Interstate Horse Racing Act, does not allow them to do what they are doing.
But this legislation does nothing to enable that in any way, shape or form; nor does it do anything to enable State lotteries to engage in Internet gambling operations.
The legislation makes it very clear that for any type of operation to take place, it must be confined within the borders of the State which cannot be done on the Internet.