Internet Gambling—New Legislation

The US House of Representatives has voted 317-93 in favor of legislation “that would prevent gamblers from using credit cards to bet online and could block access to gambling Web sites.”^[1] While most gambling is illegal online, there are exceptions for state-run lotteries and horse racing in the Bill.^[2] It may face stiff challenges in the Senate, if it is heard at all; “Republican leaders have not considered the measure a high priority.”^[3]

Under the Unlawful Internet Gambling Enforcement Act of 2006, chapter 53 of title 31 of the US Code is amended by adding new sections. The proposed new 31 U.S.C. § 5363 states that “no person engaged in the business of betting or wagering may knowingly accept, in connection with the participation of another person in unlawful Internet gambling:” credit extended to or on behalf another person, including credit extended through credit cards; electronic fund transfers; checks or similar instruments which are payable at or through any financial institution; or the proceeds of any other form of financial transaction. Violating section 5363 would be punished by a fined, imprisonment for up to 5 years, or both. Furthermore, a person convicted of such an offense could be permanently enjoined from ever making bets or wagers.

---

[1] Nancy Zuckerbrod, House OKs Bill to Rein in Online Gambling, AP (via Yahoo!), Jul. 11, 2006.
[2] Id.
[3] Id.