[Congressional Record Volume 143, Number 114 (Wednesday, September 3, 1997)]
[Extensions of Remarks]
[Page E1633]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INTRODUCTION OF THE INTERNET GAMBLING PROHIBITION ACT OF 1997

                                 ______
                                 

                           HON. BOB GOODLATTE

                              of virginia

                    in the house of representatives

                      Wednesday, September 3, 1997

  Mr. GOODLATTE. Mr. Speaker, I rise today to introduce the Internet 
Gambling Prohibition Act of 1997, along with my good friend and 
colleague from New Jersey, Representative Frank LoBiondo (R-NJ). I look 
forward to my friend from New Jersey in seeing this legislation signed 
into law. I would also like to thank my friend in the other Chamber, 
Senator Jon Kyl (R-AZ); for his leadership on this issue. The 
legislation that Mr. LoBiondo and I are introducing today is intended 
to be the House counterpart to Senator Kyl's bill, S. 474, and I am 
looking forward to working wit Senator Kyl on this issue as well.
  The Internet is a revolutionary tool that dramatically affects the 
way we communicate, conduct business, and access information. As it 
knows no boundaries, the Internet is accessed by folks in rural and 
urban areas alike, in large countries as well as small. The Internet is 
currently expanding by leaps and bounds; however, it has not yet come 
close to reaching its true potential as a medium for commerce and 
communication.
  One of the main reasons that the Internet has not reached this 
potential is that many folks view it as a wild technological frontier, 
with no safeguards to protect children and no legal infrastructure to 
prevent online criminal activity. The ability of the World Wide Web to 
penetrate every home and community across the globe has both positive 
and negative implications--while it can be an invaluable source of 
information and means of communication, it can also override community 
values and standards, subjecting them to whatever more may or may not 
be found online. In short, the Internet is a challenge to the 
sovereignty of civilized communities, States, and nations to decide 
what is appropriate and decent behavior.
  Gambling is an excellent example of this situation. It is illegal 
unless regulated by the States. With the development of the Internet, 
however, prohibitions and regulations governing gambling have been 
turned on their head. No longer do people have to leave the comfort of 
their homes and make the affirmative decision to travel to a casino--
they can access the casino from their living rooms.
  The legislation I am introducing today will protect the right of 
citizens in each State to decide through their State legislatures if 
they want to allow gambling within their borders and not have that 
right taken away by offshore, fly-by-night operators. The Internet 
Gambling Prohibition Act gives law enforcement the tools it needs to 
crack down on illegal Internet gamblers by accomplishing three main 
goals: First, providing that anyone convicted of running an Internet 
gambling business is liable for a substantial fine and up to 4 years in 
prison; second, subjecting those who place bets or wagers with virtual 
casinos to a fine and up to 6 months in prison; and third, giving law 
enforcement the ability to request cessation of service to Web sites 
engaging in illegal gambling, with enforcement by court order if 
necessary. Additionally, the bill requires the Attorney General to 
submit a report to Congress on the effectiveness of its provisions.
  This legislation is supported by organizations across the spectrum, 
from Ralph Reed to Ralph Nader, and from the National Coalition Against 
Legalized Gambling to the American Gaming Association. Additional 
supporter are the National Association of Attorneys General and the 
National Football League.
  It is also important to note that this legislation does not preempt 
any State laws, does not cover online new reporting about gambling, and 
does not apply to transactions that are legal in both the State in 
which they originate and the State in which they are received. The bill 
simply brings the current prohibition against interstate gambling up to 
speed with the development of new technology, as the Internet had not 
been created when the original law was passed and thus is not covered 
by it.
  Mr. Speaker, online gambling is currently a $200 million per year 
business, and could easily grow to $1 billion business in the next few 
years. It is time to shine a bright light on Internet gambling in this 
country, and to put a stop to this situation before it gets any worse. 
The Internet Gambling Prohibition Act, which will keep children from 
borrowing the family credit card, logging on to the family computer, 
and losing thousands of dollars all before their parents get home from 
work, will do just that. I urge each of my colleagues to support the 
Internet Gambling Prohibition Act of 1997.

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