The 2+2 Forum Archives: Obama and Durbin Respond

I guess Obama's response was more optimistic...

Thank you for contacting me regarding on-line gambling. You raise some important concerns.

As you know, prior to Congress’s action last year, internet gambling was a growing industry. According to a study by the federal Government Accountability Office (GAO), since the mid-1990s internet gambling operators established approximately 1,800 e-gaming Web sites in locations outside the United States, and global revenues from internet gaming in 2003 were over $5 billion dollars.

Both states and the federal government have laws and regulations addressing internet gambling. At the federal level, the Wire Act prohibits gambling businesses from using interstate or international telecommunications firms to knowingly transmit or receive bets. Furthermore, private companies, including many in the credit card industry, have taken steps to restrict internet gambling, primarily by prohibiting cardholders from using the cards to gamble online.

In 1996, Congress created the National Gambling Impact Study Commission to examine the social and economic impacts of gambling, including internet gambling. In its 1999 report, the Commission recommended (1) that the federal government prohibit any internet gambling not already authorized and encourage foreign governments not to harbor internet gambling organizations, and (2) that Congress pass legislation prohibiting the collection of credit card debt for internet gambling.

Following up on the Commission’s recommendations, the House of Representatives approved HR 4411, the Internet Gambling Prohibition and Enforcement Act, by a 317-93 vote. This bill was then folded into a conference committee report on unrelated port security legislation, and became Public Law 109-347 on October 13th, 2006.

I recognize both the need to comply with federal and state laws and the desire of many Illinoisans to not have the federal government over-regulate their behavior. As opportunities to reexamine this issue arise, I will certainly keep your concerns in mind.

Again, thank you for contacting me. Please stay in touch.

Sincerely,

Barack Obama
United States Senator

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Thank you for your message regarding Internet gambling. I appreciate hearing from you on this issue.

The debate over Internet gambling has generated strong public interest. While most types of Internet gambling operations are prohibited under federal law, many Internet gambling operations are based in foreign countries and have fallen outside the jurisdiction of American enforcement agencies. Overall, Americans spend roughly $4 billion to $6 billion a year on Internet gambling. Because of the largely unregulated nature of this business, Internet gambling sites often fail to block access to gambling by children and often lack effective safeguards against fraud. Further, Internet gambling can be addictive, and this addiction has had a harmful effect on some individuals and communities.

In September 2006, the Senate passed the SAFE Port Act of 2006 (H.R. 4954). This legislation contained numerous important provisions that would improve the security of our nation's ports. When a House-Senate conference committee met to work out differences in their separate versions of the bill, the conferees added language regarding Internet gambling.

The language that the conference committee added to the SAFE Port Act prohibits those who are in the business of gambling from knowingly accepting credit cards, checks, electronic fund transfers or similar financial instruments in connection with unlawful Internet gambling. The Act imposes fines and/or prison sentences on violators. The legislation further requires the Treasury Department and the Federal Reserve Board to issue regulations directing banks and other financial transaction providers to adopt practices that will enable them to identify and prevent restricted transactions that support Internet gambling.

The final version of the SAFE Port Act of 2006 included a number of provisions important to our national security. It passed by unanimous consent in the Senate. There was not a separate vote on the provisions to prevent unlawful Internet gambling.

As the Treasury Department and the Federal Reserve Board craft the regulations required by the gambling provisions of the SAFE Port Act, it is important that they work with law-abiding financial transaction providers. We can effectively improve the enforcement of our longstanding ban on unlawful Internet gambling transactions without imposing unrealistic or overly burdensome requirements on law-abiding financial transaction providers.

Thank you again for contacting me. Please feel free to stay in touch.

Sincerely,

Richard J. Durbin

United States Senator

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