A Voice of Reason

Finally a voice of reason has been heard on Capitol Hill. After years of debate and unsuccessful political maneuvering in an attempt to ban Internet gambling, someone has finally suggested REGULATING it.

Recently, Detroit Democrat John Conyers, Jr., introduced a bill that would create a five-member commission to study the feasibility of making Internet gambling legal in the United States . Conyers said that the aim of the bill is to move the focus on Capitol Hill away from discussions regarding how to BAN Internet gambling.

"I have always believed that this approach reflects a fundamental misunderstanding of the Internet, as most Internet gaming sites exist outside of the U.S. , and outside of the reach of U.S. law and law enforcement," he said. "This bill gives us a starting point to talk about how we might create some consumer protections, even in an Internet context."

What Conyers means is that the US government does not have the legal authority to go to another jurisdiction to enforce US laws. In other words, our laws do not bind people in other jurisdictions, who are bound by the laws of their own jurisdiction.

This is precisely why people like Leach authored the Internet Gambling Funding Prohibition Act (H.R. 556). That bill prohibited payments through credit cards, electronic fund transfers and any other form of financial transaction. The government understands it cannot regulate the Caribbean , Latin America or other offshore locales but CAN regulate credit card companies doing business in the USA .

The problem is that as soon as there is talk about a certain ban, the companies who have the most to lose (and gain) immediately come up with other forms of funding not prohibited by the statute. Conyers understands that Internet Gambling simply cannot be banned. Therefore, it is wise and prudent to step in and REGULATE it, affording our citizens safeguard protections while reaping the benefits of taxation. "Such an approach would be more effective at weeding out bad actors and creating protections and safeguards in cyberspace gaming that exist in brick-and-mortar casinos," Conyers recently said via a press release.

Remember when Nevada Governor Kenny Guinn approved Assembly Bill 466, which empowered the Nevada Gaming Commission to adopt regulations governing the licensing and operation of on-line gaming? That was a smart financial move because there is so much money to be made in online gambling.

You may also remember I reported that there was a clause that the Nevada Gaming Control Board was to begin by analyzing the legality of online gambling. Shortly thereafter, Assistant Attorney General Michael Chertoff issued an advisory opinion to Nevada that online gambling was illegal, even though he offered no legal analysis and therefore was sharply criticized by experts in the gaming industry.

All Chertoff's advisory opinion did, in practical terms, was put the kabosh on Nevada 's plans to move forward into the Internet Gaming world. I believe this was not too bright on the AG's part, because some jurisdiction will ultimately reap the financial benefits along with providing regulation and consumer protection. Finally, John Conyers "gets it" and is moving congress forward in this direction.

Conyers' bill had no chance of passing in 2002 since the Senate had already adjourned when the bill was introduced. Conyers said he meant to start a dialogue for the next Congress. T he bill has been referred to the House Judiciary Committee as well as the House Energy and Commerce Committee for further review before reaching the House floor. Conyers is the second most senior member of the House and is the Democratic leader on the House Judiciary Committee, where he oversees constitutional, consumer protection, and civil rights issues.

Conyers is a popular political figure with a long, impressive record on Capitol Hill. He is said to be reserved, respected, and admired by colleagues on both sides of the aisle. The Detroit Democrat was re-elected in November 2002 to his 20th term in the U. S. House of Representatives.

The text of the bill can be found at http://thomas.loc.gov by searching for the bill's number, HR 5760. As a matt er of fact, the Thomas site is fabulous, easy and accessible to everyone. The government's idea with this site was to make Federal legislative information freely available to the Internet public. What's great about the site is the ease with which anyone can perform a search.

The bill's "short title" is the "Internet Gambling Licensing and Regulation Commission Act". (Honest!) According to the bill, the committee is to be made of five members. One committee member will by assigned by each of the following people: the Speaker of the House of Representatives, the House minority leader, the Senate majority leader and Senate minority leader. The remaining member will be chosen by a vote of the other four commissioners.

Conyers' bill requires the commission to do the following:

1) Preserve the prerogatives of states with respect to intrastate gambling and wagering within their borders;

2) Minimize adverse impacts of Internet gambling such as minors gambling on-line, the use of the Internet to launder money, and the accessibility of Internet gaming to problem gamblers;

3) Preserve tribal sovereignty with respect to gaming and Internet gaming;

4) Provide for the appropriate taxation of Internet gambling enterprises in a manner comparable to the taxation of land-based gambling enterprises; and

5) Include measures to discourage, prohibit, or prevent United States citizens from wagering with unlicensed Internet gambling operations outside of the country.

Not later than one year after the date on which the Commission first meets, the Commission shall submit to the President, the Congress, State Governors, and Native American tribal governments a comprehensive report on the Commission's findings and conclusions.

Although the bill will not be entertained until some time in 2003, I applaud the actions of U.S. Rep. John Conyers. I feel he is currently the voice of reason on Capital Hill with regard to Internet gambling.

To learn more about Representative John Conyers, visit his home page at http://www.house.gov/conyers/ .