House approves Internet gambling bill

WASHINGTON, July 12 (UPI) -- In a 317-93 vote the U.S. House passed a bill that aims to stop illegal and offshore Internet gambling and block gamblers from using credit cards online.

The Internet Gambling Prohibition and Enforcement Act, combined legislations from Reps. Bob Goodlatte, R-Va., and Jim Leach, R-Iowa, would create stronger tools to help federal and state governments enforce existing gambling prohibitions, clarify that the Wire Act cover all forms of interstate gambling, account for new technologies and cease online payment to Internet gambling Web sites.

It also enhances criminal penalties for gambling businesses, settling Internet wagers using credit cards, checks, or fund transfer as well as requires payment systems to establish procedures for blocking these transactions.

"I am extremely pleased by the passage of this legislation through the House of Representatives and now I call on the Senate to act on this important legislation," said Goodlatte. "Gambling on the Internet has become an extremely lucrative business. Numerous studies have charted the explosive growth of this industry, both by the increases in gambling websites available, and via industry revenues."

Still, critics of the bill say it's selective in the type of gambling it aims to ban, carving out exemptions for online lotteries and horse racing bets.

Proponents have long argued that regulation is the key method in dealing with Internet gambling over prohibition.

But with some 2,300 Internet gambling sites, according to lawmakers, who are estimating that the industry is grossing some $12 billion, with $6 billion coming from U.S.-based bettors, analysts have said Internet gambling will continue to grow.