Congressman Bachus Urges Legislators Not to Undo UIGEA Ban on Illegal Gambling
June 27th, 2008
Congressman Spencer Bachus (R), a Ranking Member of the House Financial Services Committee, issued a speech on Tuesday at a mark up session of the committee, urging fellow legislators not to undo what he described as ‘a landmark ban on illegal online gambling.
Ahead of Wednesday’s vote on the issue, Bachus told committee members that the legislation does not concern anyone’s opinions or moral beliefs on gambling, but addresses the violation of US laws.
"Some claim that illegal Internet gambling is a victimless crime," said Bachus. "But whatever else is said about it, it is a crime and its most vulnerable victims are the young people who by the tens of thousands it exposes to the risk of becoming compulsive, addictive gamblers. Study after study shows that the earlier one begins gambling, the more likely he or she will become a problem gambler. Exposing children to gambling in their bedrooms and dorm rooms at a young age dramatically increases that risk."
Bachus cited research by the Harvard Medical School and the American Psychiatric Association which he said confirmed the harmful effects of online gambling.
He told committee members that they were facing an easy choice between "a criminal enterprise that knowingly and wilfully violates federal law and the laws of all fifty states, and the youth of our country."
"For all of these reasons," he said, "this Committee should oppose H.R. 5767 and any amendments designed to delay or prevent implementation of meaningful regulations to stop illegal Internet gambling.
H.R. 5767 was introduced by Congressmen Barney Frank and Ron Paul in April 2008. It’s introduction followed a House Financial Services Subcommittee hearing entitled, ‘Proposed UIGEA Regulations: Burden without Benefit?’
Reps. Frank and Paul said at the time of introducing the bill: "It was clear at the hearing that the regulations are unworkable for the financial services industry, and this bill would therefore prohibit their implementation."
Representatives of the U.S. Department of the Treasury and Federal Reserve System acknowledged at that hearing the challenges U.S. financial institutions will face in attempting to comply with the UIGEA. Testimony was also heard from representatives from the Credit Union National Association, Financial Services Roundtable, American Bankers Association and Wells Fargo & Co., who spoke about the unnecessary burden they would face given the ambiguity of the UIGEA and the potential confusion, with the chance of multiple interpretations of what may or may not be illegal activities.
On Wednesday the House Financial Services Committee will mark up H.R. 5767. If successful, it would prohibit the Department of the Treasury and Federal Reserve System from proposing, prescribing or implementing any regulations related to the current ban on Internet gambling.
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