Two Nevada lawmakers late last week introduced a bill calling for an "independent study" on questions relating to Internet gambling, a study which will be conducted by the National Academy of Sciences and will be the basis for a report to lawmakers. The study will examine laws in other countries, growth in technology, including online tools that block underage bettors, and the impact of the current federal online gambling ban in the U.S. on the global economy.
Congresswoman Shelley Berkley, a Democrat, and fellow Congressman Jon Porter, a Republican, are backing the bill.
The president of the American Gaming Association, Frank Fahrenkopf Jr, former head of the Republican National Committee, who is known to be close to President George W. Bush, and to the president's father, is supporting the study.
“Their bill, directing the National Research Council of the National Academy of Sciences to provide a comprehensive review of the issue, is in line with our board’s position on Internet gambling and is a responsible step in the right direction," said Fahrenkopf. "They are to be commended."
The Internet Gambling Study Act (IGSA) calls for the council to conduct a comprehensive study of Internet gambling, including the existing legal framework that governs such activities and transactions.
When finished, the study will be submitted to the President, Congress, state governors, and American Indian tribal governments. The study may be completed this year.
“Whether or not they approve of online gambling, there is no reason for Members of Congress not to support an independent study on this issue,” Berkley said. “Once this is complete, Congress can look to its findings for answers about the question of regulation and ways to address issues of concern, such as technology to prevent underage gambling.
Berkley said that individuals "must be free" to choose whether or not they want to gamble, whether it is on the Las Vegas Strip, in Macau, or on the Internet. "But I also recognize that Congress needs clear guidance on how to deal with this issue when it comes to the Internet. This study will provide us with that blueprint," she said. “As Congress moves to address online gaming in the future, this study will give us the facts and the tools we need to make important choices.”
According to the Congressmen, the topics studied shall include:
- An assessment of the proliferation of Internet gambling, including an analysis of its availability and use within the U.S.
- A determination of the impact of Internet gambling on minors and compulsive gamblers and the availability of regulatory and technological safeguards to prevent or mitigate these impacts.
- An assessment of the Unlawful Internet Gambling Enforcement Act.
- A review of the problems posed by unregulated international Internet gambling to U.S. interests and the potential means by which the government may seek international cooperation in addressing these concerns.
- A review of existing federal, state, tribal, local, and international laws governing various forms of wagering over the Internet.
- An analysis of the potential impact of recent World Trade Organization rulings regarding Internet gambling and the long-term impact on existing and future U.S. trade agreements under the General Agreement on Trade and Services.
Lastly, the study will include an analysis of the potential tax revenue that could be generated by a legal, licensed, regulated Internet gambling industry in the U.S.
“Congress needs a better understanding of Internet gambling before we make additional decisions about its future,” Rep. Porter said. “Technology continues to become more sophisticated in its ability to regulate online activity. By calling on the National Academy of Sciences to study the issue, we’ll ensure Congress has all of the facts before considering any next steps.”
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