The Internet gaming industry expects ‘more of the same’ in 2006 f...

year, the Interactive Gaming Council (IGC) said. The measure would prohibit the use in Web gambling transactions of credit cards and all other products of U.S. financial institutions. Leach and his allies have “already substantially achieved that goal, without benefit of new laws,” said IGC Exec. Dir. Rick Smith: “Whether because of pressure from federal and state authorities or because of their own initiatives, most major U.S. financial institutions block Internet gambling transactions. For several years, it’s been rare to find a U.S. credit card that can be used to deposit funds at an online casino.” That proves the futility of Leach’s effort, IGC argued. The lawmaker told colleagues that Americans will bet $5.9 billion on Internet gambling this year, and the head of a major online casino and sports betting firm estimated that 12.5 million Americans wager online. “If all these people are betting all this money, they have found other ways to deposit funds into their accounts at Internet gambling sites,” Smith said: “If that many Americans enjoy this activity, nothing that Congress can do will stop them.” The measure provides exemptions. HR-4411 wouldn’t apply to the Interstate Horseracing Act, which allowed with restrictions phone and Internet betting on horse races, IGC said. The bill also contains exemptions for fantasy sports leagues and for tribal gaming. A section of HR-4411 requires the U.S. Treasury to report to Congress annually on any deliberations between the U.S. and other countries on issues relating to Internet gambling. If the bill becomes law, the report on deliberations with the U.K. will make interesting reading, the group said. Britain’s new Gambling Commission has started consultations on how it will license and regulate all forms of gambling. New regulations will take effect in 2007, with applications for remote gambling licenses expected to be accepted year, IGC said. The British govt. has said sites it licenses will be free to take bets from the U.S. Leach told Congress he was working with Sen. Kyl (R-Ariz.) on his effort. Kyl has repeatedly tried to get similar legislation approved in the Senate. A spokesman for Kyl said the lawmaker intends to introduce soon a bill that will be “substantively similar” to his previous legislative efforts. A Leach spokesman told us HR-4411 hasn’t moved because of Congress’s winter recess and refused to comment on IGC’s statements. IGC Deputy Dir. Keith Furlong said Congress is wasting time “trying to develop prohibitory bills that will satisfy various vested interest groups.” Regulatory steps are needed for online gambling, but “not these futile stabs at prohibition,” he said. The U.S. govt.’s “shortsighted and unrealistic stance” on Internet gaming regulation doesn’t provide consumers the protections they get in real-world casinos, and it denies millions of dollars of business opportunities to U.S. casino firms and keeps Wall Street companies from participating in an expanding industry, IGC said.