The House of Representatives passed the Internet Gambling Prohibition and Enforcement Act with a vote of 317 to 93. The act clarifies that the Internet is included under the Wire Act, which made it a felony to use wire communications to place wagers. From here the measure will be discussed and voted on in the Senate, so it has not become law yet, although some news authorities (like Red Herring have reported it as if it were in fact the law of the land now.

Online gambling is an estimated $12 billion a year industry, and a huge percentage of those funds come from the United States. It boggles my mind that we're not going to try to regulate and tax that spending. When an activity is made illegal, then what the government has done is eliminate the possibility that a consumer will be protected by the law. That's why the Wire Act put the reins to sports betting activities firmly in the hand of the neighborhood bookie at the tavern, and possibly also in the hands of organized crime.

A responsible government move would have been to pass legislation requiring regulation and oversight of online gambling activities. Unfortunately, this didn't happen. Whether it was because of lobbying on the behalf of land-based casinos who are worried that Internet gambling will interfere with their profits or because the "moral majority" controls the legislature, I don't know. Government paternalism is obviously government hypocrisy in this case, since lotteries are exempted from the legislation's provisions.

Some interesting places where you can read more about the recent legislation include:

• New York Times
• Washington Post
• The Agitator's Comments

Well said, Lewis.
Let's just hope the Senate doesn't pass it. I've at least read in a few places where many politicians don't consider it a priority. Maybe partisan politics will lead to a quick end for this nasty little bill.

I agree with the assumption that this is being done thanks to the "moral majority." One article I read cited the all-time record number of kids who were betting online and losing money.
If they're so concerned with the kids, why don't they start by banning television ads depicting twentysomethings drinking beer? I have a feeling that alcohol has ruined many more lives than Internet gambling.

I would still love to know exactly how they're going to enforce the law. I was under the impression that most major credit card companies no longer accepted charges from online casinos.

I think what they will probably do is have the ISP's start blocking access to these websites. The problem is, once that starts, where does it stop? Do we really want the government blocking our access to websites, ANY websites? This is not China after all; it's the United States. "Land of the free" and all that?

Also, on a side note, Internet gambling is being called "the crack cocaine of gambling" by a particular Representative. This is not a new sound-byte. A few years ago, before Internet gambling became an issue, slot machines in land-based casinos were being called the exact same thing, "the crack cocaine of gambling". (I base that on a New York Times article I read yesterday about the psychology of slot machines.)

It's simply not the business of the U.S. government to regulate us from being able to participate in online gambling. Comparing online gambling to cocaine is absolutely absurd. Should be interesting to see how this all unfolds.

I'm sure certain people spend too much money buying useless stuff on e-Bay. Maybe the government should protect those people by arresting the owners of that site.

The government is getting into a dangerous gray area in my estimation.

While all this is tied up in extending the power of the Wire Act, how long will it be before some ambitious Senator or Congressman decides to apply the same logic towards online porn or some other "offensive" vice?

There are so many more pressing things which the American people need protection against. I mean, which claims more lives per year: alcohol, cigarettes, or online gambling? For once, I wish the government would represent the people and not their own selfish interests.

Maybe I'm crazy, but as long as I'm not hurting anyone else while I'm under the influence of it, the government really has no business telling me not to ingest cocaine either. (My Libertarianism is showing through here.)

I think our government was bought and sold by the alcohol and tobacco industries a long time ago.

Yeah, I think that's what is at the heart of most anti-American sentiment throughout the world too. It's not that other countries simply hate democracy or all things American . I think what they despise is the hypocrisy of our democracy.