Leach's Opening Statement from March

[LesJ]

Here is the opening statement made by Representative Leach when markup on his bill began in March of this year. I have some questions and comments I inserted in the text. . . please feel free to answer/comment.

Opening Statement of Rep. Jim Leach
For the Markup of
H.R. 4411: “The Unlawful Internet Gambling Act”
Financial Services Committee
March 15, 2006

Thank you, Mr. Chairman:

For nearly a decade, many in the Congress have sought to deter Internet gambling. But time and again the issue has been stymied – often in ways that reflect imperfectly on this institution.

While Congress has failed to act, the illegal Internet gambling industry has boomed. This year, Americans are projected to send approximately $6 billion to unregulated, offshore, online casinos, half of the $12 billion that will be bet worldwide on Internet gambling.
[[[[I thought most numbers had Americans generating roughly 80% of online gaming revenue - where do these numbers come from??]]]]

FBI and Justice Department experts have warned that Internet gambling sites are often fronts for money laundering, drug trafficking and even terrorist financing.
[[[[[Ok. . . the terrorist thing just infuriates me. Has there EVER been ANY evidence that this is the case? Party Poker may have horrible customer support, but does Leach honestly believe they are some subversive followers of Osama?]]]]

Further, these sites evade rigorous U.S.-based regulations that control gambling by minors and problem gamblers, and ensure the integrity of the games.

[[[There are cursory age verification efforts in place at all the major sites, correct. Any underage playing would "almost" have to have consent or negligence of parent to persist, right?]]]]


Internet gambling’s characteristics are unique: online players can gamble 24 hours a day from home
[[[[we sleep some, don't we????]]]]
; children may play without sufficient age verification; and betting with a credit card can undercut a player’s perception of the value of cash, leading to addiction, bankruptcy and crime. Unlike in brick-and-mortar casinos in the United States where legal protections for bettors exist and where there is some compensatory social benefit in jobs and tax revenues, Internet gambling sites principally yield only liabilities to America and to Americans.
[[[[Online sites can't make the US their base along with their thousands of jobs, because our Justice Department has made it clear they would be prosecuted]]]]


H.R. 4411 will create strong tools to help federal and state governments enforce existing gambling prohibitions; it has been designed to cut the money flow from gamblers to Internet gambling sites by prohibiting the use of banking instruments such as credit cards, checks or fund transfers to be used to settle wagers.

Finally, I would like to note that in the Judiciary Committee, Rep. Bob Goodlatte has offered a complementary measure, one that would amend the Wire Act, a subject outside the jurisdiction of this committee. This approach makes sense to me. I am hopeful it will receive sympathetic review in the Judiciary Committee and that this additional approach can be considered as this measure moves forward.

Mr. Chairman, the time has come for Congress to finally deal with this subject matter. It is a measure supported by the NFL, NBA, MLP, NHL, the NCAA, the financial services industry and family groups.

I also want to express appreciation for the leadership of Chairman Oxley. As a former FBI agent, he has long had an interest in this subject.

Thank you.