How does the Internet Gambling Prohibition and Enforcement Act affect Sports Betting operators?
Posted on | October 3, 2006 | No Comments
The Internet Gambling Prohibition and Enforcement Act (H.R.4411) passed to Senate on July 13, 2006 by the House, is considered the follow up to the Unlawful Internet Gambling Enforcement Act of 2005 (H.R.4777), In fact they is a combination also referred to as the Leach-Goodlatte Act.
The H.R.4777 act was passed to law on November 18 2005 and issued to prevent the use of certain payment instruments, such as credit cards, and fund transfers for unlawful Internet gambling. Congressional representatives who introduced these initiatives were Jim Leach (R-Iowa) and Bob Goodlatte (R-Va.)
The Internet Gambling Prohibition and Enforcement Act 2006 does not change law on gambling. U.S. Senate Majority Leader, Senator Bill first outlined the 2006 Autumn Agenda with these words “… As it is now, this industry threatens to undermine the quality of life of millions of Americans by bringing an addictive behavior right into our living rooms…”
Therefore, sports betting operators were told that nothing that is illegal would be made legal, and nothing that is legal will be made illegal. This act is meant to provide law enforcement and enforcement tools to prevent and prohibit illegal Internet gambling transactions, going further to over-watching web sites operated offshore.
The Internet gambling skyrocketing popularity began to be questioned in 1998 after the Internet Gambling Prohibition Act of 1997. However, it was not until 2001 when it was revealed that these actions were encouraged by professional sports organizations such as the NFL, the NBA and NHL, family and religious groups, among other organizations.
In defense of Internet gambling and sports books, operators consider all actions toward banning online gambling unfair, considering that a huge percentage of Internet gamblers are small-stakes players who go for the $10 tournaments as a way to distract their minds after a stressful day at work.
The true fact is that whatever the amount that an average online player spend, the gambling industry is projected to receive this year $6 billion, sent to unregulated, offshore, online casinos that Americans visit for something more that a few hours of leisure.
This amount is half of the total $12 billion bet worldwide through Internet gambling. Sports operators argue that this amount is carried on by poker and gambling activities other than sports, so a review of the law should be considered.
Sports books are part of Internet gambling and there will not be any exception, since this activity has proven to be an addictive experience, particularly for college students, whether or not they are actually enrolled in a college sport team.
In overall terms, gambling is illegal in the United States, but the law is not being enforced. This year in the state of Louisiana, a warrant was issued charging Peter Dicks, a non-executive chair for Sportingbet, illegal gambling by computer.
Dicks was arrested on September 8 2006, after flying into New York from London, and granted a $50,000 bail amount for his release from jail until the court hearing a week later. To avoid actions like this, for several years, dozens of Internet sports books located offshore have raised concerns about gambling activity. Many of these sports betting operators, mostly Americans have moved to the Caribbean Islands or Central American countries where this activity is not illegal.
Sport books are clearly aimed to American bettors as well, since most of the American sporting events such as football, baseball and basketball are included, and only U.S. currency is accepted for betting, even when the instructions to fund or wire transfer money mention offshore locations.
The Internet Gambling Prohibition and Enforcement Act not only affects the sports betting operators, but also the gross income that college newspapers and magazines devoted to sports fans have received for years promoting sport books on the Internet.
Sports Illustrated magazine published in 1998 that illegal Internet sports gambling exceeded $600 million obtained only from American citizens.
There will be no exceptions to law, but Sports betting operators are still on hold waiting for the final word that breaks their ties with casino and poker games, which they point as the real problem to be tackled.
Related posts:
- How does the Internet Gambling Prohibition and Enforcement Act affect US gamblers?
- Unlawful Internet Gambling Enforcement Act – Onwards to Asia
- Major League Sports and Gambling
- Sports betting for US players
- Operators still accepting US gamblers
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