By Lawrence G. Walters, Esq
In just a matter of minutes, the United States Senate Banking Committee passed S.627, after the Chairman of the Committee introduced the bill and asked the Committee to approve the amendments he had already made to it. Proposed by Sen. Jon Kyl (R-Ariz.) and dubbed the Internet Gambling Prohibition Bill, the legislation would prohibit gambling businesses from accepting credit card, electronic fund transfer or other payment methods from gamblers who bet illegally over the Internet. The bill also would set civil and criminal penalties for Internet gambling and would modify the federal criminal code to include satellite, microwave and other communications from fixed or mobile sources. The bill's primary goal is to give U.S. law enforcement a more effective tool for fighting offshore Internet gambling sites that illegally offer their services to U.S. residents.
In June, the House overwhelmingly passed H.R. 2143, legislation that would prohibit gambling businesses from accepting credit card payments and other bank instruments from Internet gamblers. Conversely, critical to the House bill's passage was the removal of criminal provisions that are at the center of Kyl's Senate bill.
However, at the last Panel hearing on S. 627, which was in March, 2003, Stewart A. Baker, general counsel for the U.S. Internet Service Providers Association, urged the Committee to avoid 'unintended consequences' that may hurt the economic growth of the Internet, including requiring ISPs to block customer access to gambling sites not residing on their networks and not under their control. 'Service providers are unable to block user access to websites on other service providers' networks with any reliability,' Baker said. 'Blocking efforts can be easily circumvented and will seriously disrupt legitimate e-commerce and speech.' The Bill is to be reported to the full Senate.
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In just a matter of minutes, the United States Senate Banking Committee passed S.627, after the Chairman of the Committee introduced the bill and asked the Committee to approve the amendments he had already made to it. Proposed by Sen. Jon Kyl (R-Ariz.) and dubbed the Internet Gambling Prohibition Bill, the legislation would prohibit gambling businesses from accepting credit card, electronic fund transfer or other payment methods from gamblers who bet illegally over the Internet. The bill also would set civil and criminal penalties for Internet gambling and would modify the federal criminal code to include satellite, microwave and other communications from fixed or mobile sources. The bill's primary goal is to give U.S. law enforcement a more effective tool for fighting offshore Internet gambling sites that illegally offer their services to U.S. residents.
In June, the House overwhelmingly passed H.R. 2143, legislation that would prohibit gambling businesses from accepting credit card payments and other bank instruments from Internet gamblers. Conversely, critical to the House bill's passage was the removal of criminal provisions that are at the center of Kyl's Senate bill.
However, at the last Panel hearing on S. 627, which was in March, 2003, Stewart A. Baker, general counsel for the U.S. Internet Service Providers Association, urged the Committee to avoid 'unintended consequences' that may hurt the economic growth of the Internet, including requiring ISPs to block customer access to gambling sites not residing on their networks and not under their control. 'Service providers are unable to block user access to websites on other service providers' networks with any reliability,' Baker said. 'Blocking efforts can be easily circumvented and will seriously disrupt legitimate e-commerce and speech.' The Bill is to be reported to the full Senate.
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