[Congressional Record (Bound Edition), Volume 148 (2002), Part 14]
[Extensions of Remarks]
[Page 19181]
[From the U.S. Government Publishing Office, www.gpo.gov]




            LEACH-LaFALCE INTERNET GAMBLING ENFORCEMENT ACT

                                 ______
                                 

                               speech of

                             HON. LEE TERRY

                              of nebraska

                    in the house of representatives

                        Tuesday, October 1, 2002

  Mr. TERRY. Mr. Speaker, I rise in strong support of H.R. 556, the 
Unlawful Internet Gambling Funding Prohibition Act.
  In 1997, there were only 12 illegal Internet gambling sites. Today, 
there are close to 2,000. Testimonies received during Congressional 
hearings underscored that children and problem gamblers are the most 
frequent visitors to online gaming sites. Financial ruination and 
despair are all too often the results for their families.
  Most Internet gambling sites are based in the Caribbean or Central 
America, beyond the reach of the U.S. Justice Department. It is 
estimated that the American market generates up to 60 percent of their 
revenue. The local governments of these jurisdictions are also 
profiting from online gambling. For example, the Antigua and Barbuda 
governments are now licensing virtual casinos at a cost of $75,000 to 
$85,000 per site.
  While the scourges of gambling addiction are well known, less 
understood is the fact that Internet gambling poses a serious threat to 
national security. A recent report by the General Accounting Office 
emphasized the concerns of law enforcement officials that gambling 
sites can serve as covers for illegal money laundering by terrorists 
and organized crime.
  Enacting H.R. 556 would give law enforcement officials and bank 
regulators the necessary tools to crack down on illegal Internet 
gambling. Banks and credit card companies would be required to block 
payments to Internet casinos and other gaming operations, and accepting 
payment for illegal online gambling transactions would be a crime.
  Mr. Speaker, I urge my colleagues to join me in supporting this 
common-sense legislation to help put a stop to illegal Internet 
gambling for the benefit and protection of American families and 
businesses.

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