[Congressional Record Volume 153, Number 128 (Saturday, August 4, 2007)]
[Extensions of Remarks]
[Pages E1757-E1758]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                H.R. 2046 OVERRIDES BROAD RANGE OF LAWS

                                 ______
                                 

                          HON. JOSEPH R. PITTS

                            of pennsylvania

                    in the house of representatives

                         Friday, August 3, 2007

  Mr. PITTS. Madam Speaker, I received a letter today from a bipartisan 
coalition of family and faith-based organizations, who are concerned 
that powerful international gambling interests will succeed in negating 
U.S. laws that curb Internet gambling. I ask unanimous consent to place 
a copy of this letter in the Record.
  Probably the most serious avenue of attack mentioned in this letter 
is H.R. 2046, which would legalize Internet gambling and provide online 
casinos with exemptions from federal and state laws.
  Just one year ago, this body voted 317 to 93 in favor of the Unlawful 
Internet Gambling Enforcement Act of 2006, which went on to be signed 
into law on October 13, 2006. By enacting UIGEA, we emphatically 
decided that we would not simply roll over as offshore gambling 
operators deliberately defied our laws. We would enforce our laws, even 
when the websites are offshore, by cutting off the flow of money for 
illegal Internet gambling activities. At the same time, we preserved 
existing Federal and State gambling laws, including the rights of 
States to set gambling policy and regulate any gambling operators 
within their own borders.
  H.R. 2046 does not repeal UIGEA per se, but that would be its 
practical effect. The license this legislation would grant to Internet 
gambling operators serves as an affirmative defense to any prosecution 
or enforcement action under any other Federal or State law. It brushes 
aside Federal gambling laws such as the Wire Act, State gambling 
prohibitions, and State gambling regulatory commissions.
  The proponents of H.R. 2046 say there is an opt-out for States, but 
this opt-out is riddled with problems. First, State laws already on the 
books don't matter--the governor has to certify exactly what is 
prohibited in that State, and if he or she fails to make that 
certification within 90 days, then the State becomes open game for 
Internet gamblers. Not only is it bad policy to ignore laws on the 
books, it is probably unconstitutional to give the Governor effective 
unilateral power to set Internet gambling policy for the State.
  Second, if the State were to allow any form of gambling online, it 
would be regulated by the Treasury Department, which has no experience 
in gambling regulation, instead of the highly-experienced State 
gambling commission.
  Third, the State opt-out would violate current U.S. trade 
obligations, so the World Trade Organization could tell the U.S. to 
drop the opt-out or face stiff trade penalties. The U.S. is currently 
trying to withdraw its ``obligation'' to free trade in gambling--which 
the U.S. never intended to make--but the process could take months or 
years. Until then, the offshore gambling industry could attack the 
State opt-out in H.R. 2046 in the WTO, as one of their attorneys 
publicly stated at a Cato Institute forum just last week.
  Finally, keep in mind that NO State has yet legalized Internet 
gambling with foreign companies. If all the States opt out according to 
the laws they already have on the books, and if the opt-outs are not 
challenged legally, what will the international gambling interests have 
gained? If nothing, then why are they spending millions on lobbying 
efforts to pass H.R. 2046?
  I hope that my colleagues will look past the smokescreen and see that 
H.R. 2046 could result in the greatest expansion of gambling ever 
enacted by Congress.
                                                   August 1, 2007.
       Dear Member of Congress: As a bipartisan coalition of 
     family and faith-based organizations representing millions of 
     citizens nationwide, we thank you for your efforts to protect 
     families from the dangers of Internet gambling. Last year, 
     Congress took the very valuable step of enacting the Unlawful 
     Internet Gambling Enforcement Act of 2006 (UIGEA) so that 
     U.S. gambling laws could be better enforced on the Internet. 
     We are concerned, however, about ensuring the integrity of 
     UIGEA in upcoming months. We have three primary concerns:

[[Page E1758]]

       Congressional support for strong UIGEA regulations from the 
     Treasury Department, add list of illegal Internet gambling to 
     FinCEN and OFAC lists, block transactions, create a system 
     for reporting illegal sites to the DOJ (Internet, phone, 
     mail), enforce prosecution of illegal online gambling 
     operations.
       Your support of UIGEA's integrity and your opposition to 
     contrary legislation.
       Congressional support for U.S. withdrawal from WTO 
     obligations that jeopardize UIGEA.
       Internet gambling represents the most invasive and 
     addictive form of gambling in history. Speed, accessibility, 
     availability and anonymity make Internet gambling the perfect 
     storm for gambling addiction. Internet gambling also creates 
     fertile ground for criminal activity and threatens homeland 
     security by potentially funding terrorist activity.
       More than 230 million Americans access the Internet, many 
     of whom are children and adolescents. Internet gambling 
     extends beyond state borders, beyond democratically enacted 
     laws and is piped directly into millions of homes. Before 
     Congress passed UIGEA, nearly 3,000 online casinos could be 
     accessed instantly with the click of a mouse.
       Since its passage, UIGEA has severely cut unlawful U.S. 
     profits to foreign gambling interests. Now these Internet 
     casino operations are willing to spend millions of dollars 
     influencing Congress to gain legal access into U.S. homes. In 
     fact, the UC Group (a leading payment-service provider in the 
     U.K.) claims to be ``leading the initiative'' behind Rep. 
     Barney Frank's bill, H.R. 2046. The misinformation campaign 
     is in full swing, and Congress is the target. You should be 
     aware of several bills that threaten the integrity of UIGEA:
       Rep. Frank's bill H.R. 2046--far-reaching legalization of 
     Internet gambling, providing online casinos with exemptions 
     from federal and state laws.
       Rep. Wexler's bill H.R. 2610--exempts poker and ``games of 
     skill'' from UIGEA.
       Rep. McDermott's bill H.R. 2607--licenses and taxes 
     Internet casinos.
       Foreign gambling interests are also pressuring the World 
     Trade Organization (WTO) to force the U.S. to legalize 
     Internet gambling. They claim that the U.S. is obligated to 
     legalize gambling because it committed to free trade in 
     ``recreational services,'' and a WTO panel agreed. Now the 
     U.S. is seeking to amend its trade commitments to make 
     clear that Congress never intended to turn over to the WTO 
     its right to set gambling policy. Congress should return 
     the favor to the U.S. Trade Representative by supporting 
     these negotiations.
       Again, thank you for your time and service in preserving 
     families. We hope for your ongoing support of the Unlawful 
     Internet Gambling Enforcement Act in the upcoming months.
           Sincerely,
     Tom Minnery,
       Senior Vice President, Focus on the Family Action.
     Guy C. Clark,
       Chairman, National Coalition Against Legalized Gambling.
     Gary Bauer,
       President, American Values.
     Roberta Combs,
       President, Christian Coalition of America.
     Phyllis Schlafly,
       President and Founder, Eagle Forum.
     Tom McClusky,
       Vice President for Government Affairs, Family Research 
     Council.
     Keith Wiebe,
       President, American Association of Christian Schools.
     Donald E. Wildmon,
       Executive Director and Founder, American Family 
     Association.

                          ____________________