Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I rise in support of H.R. 2143, the unlawful Internet Gambling Funding Prohibition Act. I thank the gentleman from Alabama (Mr. Bachus) for all of the hard work he has…
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in support of H.R. 2143, the unlawful Internet Gambling Funding Prohibition Act. I thank the gentleman from Alabama (Mr. Bachus) for all of the hard work he has done on this particular piece of legislation, for working with me and the rest of the subcommittee.
This bill is really about enforcing what is already illegal activity. I have had several people come up to me and say, well, what does this bill really do? What this bill really does, it takes what is already illegal, it makes nothing more illegal or nothing less illegal, it takes what is already illegal and tries to enforce that law.
Furthermore, I would like to thank the gentleman from Massachusetts (Mr. Frank), the ranking member of the Committee on Financial Services, for the opportunity to manage the debate for the Democratic Caucus. He and I do not see eye to eye on this legislation, but I appreciate and respect the fact that we agreed to disagree, and I welcome healthy debate on the topic of illegal Internet gambling.
I am an original cosponsor of H.R. 2143, which was reported favorably by the Committee on Financial Services in March. Actions taken recently by the Committee on the Judiciary served to weaken this bill in such a way as to throw into question whether the bill would still adequately preserve the Federal law and protect States rights when it comes to regulating Internet gambling. Today's legislation will reduce that uncertainty by moving forward with the financial services-related provisions of H.R. 2143, which would serve as a core purpose of the bill to shut off that financial spigot to the illegal offshore casino sites.
Mr. Chairman, I want to talk a minute about what that financial spigot looks like. It is currently around $6 billion a year. None of that contributes to the United States economy. There are between 1,500 and 2,000 offshore Internet gambling sites. Unlawful Internet gambling is a scourge of our society. It not only leads to crime, but in many cases it is run by criminal enterprises. By shutting off the funding flow, we will go a long ways toward shutting down these elicit enterprises.
The Committee on Financial Services and all of the members, the ranking member and the chair, have worked diligently over the last few years with industry groups and civic organizations to strengthen the measure and to build support for its enactment. We consulted with financial services companies to improve the bill, recognizing current industry practices and protecting firms from liability for refusing to honor restricted transactions.
The policy rationale for this legislation is very simple: Offshore Internet gambling is already deemed illegal. By continuing to allow the financing of illegal Internet gambling, we are stating that we are not serious about enforcing the law. Worse, the FBI, the Department of Justice, and the Department of State have all stated that Internet gambling can be exploited to launder money for such groups as drug dealers, organized crime and terrorist organizations.
Now is the time to close the loophole that allows illegal Internet gambling to still exist in the United States.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 3 minutes to my good friend, the gentleman from Alabama (Mr. Davis), a member of the committee.
Mr. Chairman, I yield such time as he may consume to the gentleman from Massachusetts (Mr. Frank), our ranking member.
Mr. Chairman I yield 2\1/2\ minutes to my good friend, the gentlewoman from Nevada (Ms. Berkley).
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I would respond to the comments of the gentlewoman from Nevada (Ms. Berkley). I think she gave a really good argument why we should pass this bill. It may not do everything that we want it to do, but right now offshore gambling is illegal.
What we are trying to do in this bill is very simple. It is to shut off the financial spigot. Will it stop it totally? Probably not. Will it make a dent? I certainly hope so. But unless we can shut off that financial spigot, nothing will happen, and it will just continue to grow and take that money out of our economy.
Mr. Chairman, I yield 2 minutes to my good friend, the gentlewoman from Texas, (Ms. Jackson-Lee).
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, how many more speakers does the gentleman have?
Mr. Chairman, I yield 2 minutes to the gentlewoman from Nevada (Ms. Berkley).
Mr. Chairman, I reserve the balance of my time for closing.
Mr. Chairman, is the gentleman through with his speakers?
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, first of all, I want to remind people this is not about legal gambling. This is about illegal gambling. This is about offshore casinos. This is about illegal Internet gambling.
Again, I appreciate the opportunity to speak in favor of this Unlawful Internet Gambling Funding Prohibition Act. And I also want to thank the gentleman from Ohio (Mr. Oxley) and the gentleman from Alabama (Mr. Bachus) for all of the hard work, and it has taken more than 1 year that they have worked on this.
Mr. Chairman, I do not intend to turn this debate into an oversimplification, but I want to remind this entire Chamber that this bill does not in any way prohibit Internet gambling. The bill does not make Internet gambling illegal. This bill quite simply takes Internet gambling that is already illegal, such as offshore gambling, and prohibits financial institutions from funding those transactions. The best way to put it is that this bill will actually enforce existing law, which is something I believe that we all agree on is in this country's best interest.
Finally, I would like to share a couple of quick facts that sum up my support for this legislation. First, a study released by the American Psychiatric Association concluded that about 20 percent of children- oriented online game sites featured Internet gambling advertisements, 20 percent. Does that make any sense? Offshore illegal Internet gambling sites are advertising to our children and we are not shutting down these offshore illegal Internet gambling sites? That does not make sense to me.
Second, the FBI and the Department of Justice have linked, without question, offshore Internet gambling to organized crime, money laundering and identity theft. Offshore illegal Internet gambling has been linked to organized crime and terrorism and we are not going to shut it down? That does not make sense to me.
It is time to enact legislation that empowers our law enforcement officers to become tough on the existing laws and to put illegal Internet gambling sites out of business once and for all.
Please support H.R. 2143, the Unlawful Internet Gambling Funding Prohibition Act.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I ask unanimous consent to claim the time otherwise reserved for the opposition.
Mr. Chairman, I yield myself such time as I may consume.
I am supportive of the gentlewoman from New York's (Mrs. Kelly) amendment. I think it is a great idea that she came up with to make very clear what this bill does and does not do.
Mr. Chairman, I have no further speakers, and I yield back the balance of my time.