[Congressional Record (Bound Edition), Volume 148 (2002), Part 9]
[Extensions of Remarks]
[Page 12080]
[From the U.S. Government Publishing Office, www.gpo.gov]




 STATEMENT ON FEDERAL TRADE COMMISSION'S INITIATIVE TO EDUCATE PARENTS 
                        ABOUT INTERNET GAMBLING

                                 ______
                                 

                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                        Thursday, June 27, 2002

  Mr. WOLF. Mr. Speaker, I want to share with our colleagues my 
statement regarding the Federal Trade Commission's recent announcement 
of an initiative to educate parents about children and Internet 
gambling. This Congress must make it a priority to pass Internet 
gambling legislation this year. Our children and families deserve 
nothing less than our best effort on this critically important issue.

          Statement by the Honorable Frank R. Wolf of Virginia


                    FTC Internet Gambling Initiative

           Commerce-Justice-State Appropriations Subcommittee

       Thank you all for being here today. I also want to thank 
     and recognize the efforts of the others who will speak after 
     me: Timothy Muris, chairman of the Federal Trade Commission; 
     Dr. Rachel Vollberg, board member on the National Council on 
     Problem Gambling, and Dr. Marianne Guschwan, chair of the 
     American Psychiatric Association's Committee on Treatment 
     Services for Addicted Patients.
       Thank you all for appearing here today and for offering 
     this public education initiative on an urgent issue facing 
     this country's youth and families--the proliferation of 
     Internet gambling,
       As a member of Congress, I have been deeply concerned about 
     the spread of gambling in this country. Perhaps no where has 
     the proliferation been more explosive than in Internet 
     gambling.
       In 2000, Bear, Stearns & Co. Inc. reported that there were 
     then at least 650 Internet gambling web sites, and that total 
     revenues for 1999 had been $1.2 billion (an 80 percent 
     increase from 1998) and would grow to $3 billion by this 
     year, 2002. Others estimated that Internet gambling could 
     soon easily become a $10 billion-a-year industry. Several new 
     gambling sites appear on the web every day.
       The negative consequences of online gambling can be as 
     detrimental to the families and communities of addictive 
     gamblers as if a bricks and mortar casino were built right 
     next door.
       Just as with traditional forms of gambling, online gambling 
     can result in addiction, bankruptcy, divorce, crime, and 
     suicide--the costs of which must ultimately be borne by 
     society.
       In its 1999 final report to Congress, the bipartisan 
     National Gambling Impact Study Commission expressed alarm 
     about the growing problem of youth gambling. The commission 
     said, ``Adolescent gamblers are more likely to become problem 
     or pathological gamblers.''
       Several studies also have shown the link between youth 
     gambling and its association with alcohol and drug use, 
     truancy, low grades and illegal activities to finance 
     gambling.
       As the gambling commission noted, youth gambling like youth 
     smoking is often an issue of accessibility and marketing. 
     There is perhaps nothing more accessible to children today 
     than the Internet. The commission's report asked, ``How do we 
     as a nation quantify the values in lost opportunities to 
     these young individuals?''
       According to the gambling commission, gambling on the 
     Internet is especially enticing to youth, pathological 
     gamblers, and criminals.
       But there are currently no mechanisms in place to prevent 
     young people--who make up the largest percentage of Internet 
     users--from using their parents' credit card numbers to 
     register and set up accounts for use at Internet gambling 
     sites.
       The National Gambling Impact Study Commission recommended 
     that a total prohibition of gambling on the Internet would 
     provide law enforcement with the additional authority it 
     needs to prosecute dishonest operators.
       Internet gambling evades existing anti-gambling laws, 
     endangers children in the home, promotes compulsive gambling 
     among adults, preys on the poor, and facilitates fraud.
       I could stay here all day cataloging story after story of 
     ruined families, bankruptcies, suicides and official 
     corruption which at their root you can find a history of 
     gambling.
       Gambling is a dangerous product. Study after study has 
     shown that for many in our society, it is also strongly 
     addictive. Gambling's proliferation over the Internet in the 
     last few years illustrates just how pervasive and accessible 
     it is to our youngest citizens.
       I am hopeful that Congress will pass Internet gambling 
     legislation this year. In the mean time, the FTC, the 
     National Council on Problem Gambling, and the American 
     Psychiatric Association have taken the lead in calling to the 
     public's attention the risks of online gambling.
       These organizations deserve public praise.
       Internet gambling is particularly targeted to young people, 
     and public education about the inherent dangers of online 
     gambling is vital to helping parents protect their families.

     

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