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Having the same enemy makes for strange bedfellows. Yesterday I wrote about the American Values Agenda and the package of bills it is serving up to the House of Representatives. While each bill will be debated separately, the House Republicans are doing what they can to push this group of initiatives. Rumors are saying that the anti-internet legislation will be debated on July 12th. With such strong bi-partisan support and a well written bill this piece of legislation has a good chance of going through. The two things which have a strong probability of stopping these bills are time and the Senate. Time because this is an election year for the House of Representatives and their session is ending early, and the Senate because numerous anti-internet gambling bills have failed in the Senate (just ask Jon Kyle). Now several special interest groups are combining their forces in order to try and stop the ban on internet gambling. The New York Times on the web published an article on July 4th about the other side of the internet gambling coin. While everyone else is focusing on getting internet gambling to go away, the NYTimes.com is writing about those who want it to stay. Most of the people for internet gambling were of no major surprise. However I didn't expect that, "Major League Baseball wants to make sure that any measures do not diminish fantasy sports games, which it credits for a resurgence in its popularity." I suppose that makes sense. I don't know anything about the fantasy sports games. Land based casinos are awaiting the results of this with baited breath. While they claim neutrality they have their own agenda. For them the passing of anti-internet legislation would be both a blessing and a curse. A blessing as it would cut down on their profits lost to internet casinos and a curse due to the reality that they could never get into the industry. As such they have embraced the suggestion made in congress that a study be made before a final decision is reached. For them the ideal situation would be that internet gambling would be legalized and regulated, this way they could get their share of the now $12 billion dollar worldwide industry. Why would congress want to kill internet gambling? The reason is clear, economic protectionism of course. It's not that they want to kill internet gambling, it's that they want to kill off-shore betting, the type that doesn't bring any taxes to their pockets. Having money leave United States shores is a great way to get bi-partisan support in stopping it. Currently several states have "PlayAway" betting, which is online Keno. The player buys the card from the land-based casino and gets to play games and check their results online. Connecticut banned this last year, but Nevada and Mississippi have approved it this year. According to the NYTimes.com HR 4777 and HR 4411 don't have much of a chance of getting passed. "The odds of a bill's becoming law this year appear long." Even still congress is giving it their best shot. By grouping both bills as one and putting it up for early debate with the American Values Agenda they are raising the stakes. Like everything in life, it’s all about the money. According to NYTimes.com, "David O. Stewart, an analyst and a lawyer who produced a study of online gambling for the American Gaming Association, a client of his firm, paraphrased an adage used by the Supreme Court in a campaign finance case, saying: "Money, like water, will find its way. And I really think that applies to this. The money will find a way to get to the offshore sites."" As internet gambling casinos, poker rooms, and sports books are currently illegal in the United States the only chance they have of getting US money to stay would be to regulate the industry and allow online gambling companies to reside in the US. One would think that if any government could find an efficient way of taxing internet gambling and harnessing all of its economic potential the US could. Almost 80 countries allow some sort of internet gambling. Britain, America's closest ally, has revised its gambling laws and has even devised a tax-and-regulatory structure which should entice offshore gambling companies to locate there. What angers me about this bill is the lack of honesty on the part of the politicians as to why they support the bill. According to the NYTimes.com Leach said "that there were no social benefit and few "happy aspects" to Internet gambling. Not only can gambling be addictive, with debts racked up quickly online, Mr. Leach said, but from a moral standpoint, gambling also breaks apart families and poses a danger to under-age players." This is an example of a fallacy made to be believed as true through repeated rhetoric. There have been no conclusive serious studies which have shown a significant difference in addiction from land based casinos to the internet. The Harvard Medical Review states that between one percent and two percent of all gamblers actually become addicted. Why do the many have to lose their freedom in order to protect the few? We haven't outlawed cigarettes or alcohol even though both of these substances have been proven to be addictive. Congress isn't trying to ban gambling. They only want to kill the one method of gambling which doesn't benefit them. Internet gambling does benefit a few small countries, however, Antigua and Barbados to name two. These countries have their economy based on the internet gambling industry, economies which will be destroyed if HR 4777 and HR 4411 are passed. Most likely they will turn to the US for economic support if this happens. Let's face it. American's like to gamble and they are used to freedom of choice. "Americans are already gaming in large numbers because it's entertainment," said Mike McComb, a spokesman for Betmaker.com, based in Costa Rica. Why would congress want to tell US citizens that they can gamble, as long as they gamble their way? Related Links: Posted on: July 10, 2006
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