House passes Internet gambling ban, U.S. cracks down
House passes Internet gambling ban, U.S. cracks down
BETonSPORTS CEO David Carruthers arrested in Texas
On July 11 the U.S. House of Representatives voted 317 to 93 to pass H.R.4411, which would severely restrict Internet gambling.
"I'm appalled by (last July's) events," said PocketFives.com President Cal Spears in a press release. "Our site focuses wholly on online poker. Our poker pros who regularly visit, post and write for the site are all greatly saddened."
Current law prohibits gambling over telephone wires, but the new act would clarify and expand regulations to ban gambling on the Internet through wireless and cable connections. Intrastate online betting on lotteries and Indian casino games would be exempt, as well as interstate online gambling on horse racing. The bill does, however, ban interstate betting on dog racing, jai alai and lotteries.
Rep. Bob Goodlatte (R-Va.) co-sponsored the bill with Rep. Jim Leach (R-Iowa), who cited young people's ability to access online gambling and develop addiction as impetus behind the bill. "Never before has it been so easy to lose so much money so quickly at such a young age," Leach told the Associated Press.
Rep. Shelley Berkley (D-Nev.) said the act violated citizens' right to privacy. "Supporters of this bill say that we must protect young people and people who get addicted to gambling," Berkley told the Washington Times. "Well, if we follow that logic, our next effort should be to ban online shopping and protect people from overspending on shopping addictions."
Other critics of the bill said it would be better to regulate the $12 billion online gambling industry. "Prohibition didn't work for alcohol," said Rep. Barney Frank (D-Mass.). "It won't work for gambling."
Most of the countries running the estimated 2,300 gambling sites are based in South America and the Caribbean. The bill goes next to the Senate, where Sen. Jon Kyl (R-Ariz.) leads the support. However, Senate leaders have not identified online gambling as a top priority.
Shortly following the bill's passage by the House, U.S. authorities arrested BETonSPORTS CEO David Carruthers in Texas on racketeering, conspiracy, transmission of wagers, tax evasion and other federal charges related to BETonSPORTS' online wagering operations.
The arrest triggered concern by operators of other online casinos and betting sites. Organizers of the Bodog.com Marketing Conference cancelled their scheduled trade show in Las Vegas late last month, choosing instead to throw a party at the Venetian. Bodog CEO Calvin Ayre called the event's cancellation "acting prudently."
"I assure you that we will make it up to you with a bigger and better conference to be announced in the near future," he said in a note to attendees. "Bodog.com will carry on our business as usual and will continue to lead the way in digital entertainment."
Some news reports had indicated that other online gaming executives would avoid U.S. travel instead of risk the same fate as Carruthers, who was arrested July 16 at the airport in Dallas while waiting to board a flight to Costa Rica where the company's headquarters are based. He was being held in federal custody, after his lawyer asked that Carruthers' bail hearing be postponed.
The hearing for Carruthers, an outspoken proponent of online gambling, will be held in Federal District Court in St. Louis. No date had been set as of press time.
Carruthers and 10 others, including BETonSPORTS founder Gary Stephen Kaplan, were named in a 22-count indictment unsealed by federal prosecutors in St. Louis. The government alleges the firm fraudulently took bets from Americans by phone and the Internet and did not pay excise taxes.
The company complied with a federal judge's order to close its Web sites for American users but plans to contest the order.
-Darby Harris & Marian Green
BETonSPORTS CEO David Carruthers arrested in Texas
On July 11 the U.S. House of Representatives voted 317 to 93 to pass H.R.4411, which would severely restrict Internet gambling.
"I'm appalled by (last July's) events," said PocketFives.com President Cal Spears in a press release. "Our site focuses wholly on online poker. Our poker pros who regularly visit, post and write for the site are all greatly saddened."
Current law prohibits gambling over telephone wires, but the new act would clarify and expand regulations to ban gambling on the Internet through wireless and cable connections. Intrastate online betting on lotteries and Indian casino games would be exempt, as well as interstate online gambling on horse racing. The bill does, however, ban interstate betting on dog racing, jai alai and lotteries.
Rep. Bob Goodlatte (R-Va.) co-sponsored the bill with Rep. Jim Leach (R-Iowa), who cited young people's ability to access online gambling and develop addiction as impetus behind the bill. "Never before has it been so easy to lose so much money so quickly at such a young age," Leach told the Associated Press.
Rep. Shelley Berkley (D-Nev.) said the act violated citizens' right to privacy. "Supporters of this bill say that we must protect young people and people who get addicted to gambling," Berkley told the Washington Times. "Well, if we follow that logic, our next effort should be to ban online shopping and protect people from overspending on shopping addictions."
Other critics of the bill said it would be better to regulate the $12 billion online gambling industry. "Prohibition didn't work for alcohol," said Rep. Barney Frank (D-Mass.). "It won't work for gambling."
Most of the countries running the estimated 2,300 gambling sites are based in South America and the Caribbean. The bill goes next to the Senate, where Sen. Jon Kyl (R-Ariz.) leads the support. However, Senate leaders have not identified online gambling as a top priority.
Shortly following the bill's passage by the House, U.S. authorities arrested BETonSPORTS CEO David Carruthers in Texas on racketeering, conspiracy, transmission of wagers, tax evasion and other federal charges related to BETonSPORTS' online wagering operations.
The arrest triggered concern by operators of other online casinos and betting sites. Organizers of the Bodog.com Marketing Conference cancelled their scheduled trade show in Las Vegas late last month, choosing instead to throw a party at the Venetian. Bodog CEO Calvin Ayre called the event's cancellation "acting prudently."
"I assure you that we will make it up to you with a bigger and better conference to be announced in the near future," he said in a note to attendees. "Bodog.com will carry on our business as usual and will continue to lead the way in digital entertainment."
Some news reports had indicated that other online gaming executives would avoid U.S. travel instead of risk the same fate as Carruthers, who was arrested July 16 at the airport in Dallas while waiting to board a flight to Costa Rica where the company's headquarters are based. He was being held in federal custody, after his lawyer asked that Carruthers' bail hearing be postponed.
The hearing for Carruthers, an outspoken proponent of online gambling, will be held in Federal District Court in St. Louis. No date had been set as of press time.
Carruthers and 10 others, including BETonSPORTS founder Gary Stephen Kaplan, were named in a 22-count indictment unsealed by federal prosecutors in St. Louis. The government alleges the firm fraudulently took bets from Americans by phone and the Internet and did not pay excise taxes.
The company complied with a federal judge's order to close its Web sites for American users but plans to contest the order.
-Darby Harris & Marian Green
