U.S. tries to cut off online casinos

U.S. tries to cut off online casinos
By Matt Richtel and Heather Timmons The New York TimesTUESDAY, JULY 25, 2006-->Published: July 25, 2006

http://www.iht.com/articles/2006/07/25/business/gamble.php

While prosecutors argue that Internet casinos violate the law, there is no U.S. federal prohibition against actually placing a bet. So how much success the federal push can have "is a very profound question," said Representative Jim Leach, Republican of Iowa, the co- author of the legislation, who says the gambling is detrimental to families and the economy.

The question of further curbing Internet gambling has been a perennial issue in Congress in recent years. But people involved with the legislation say the reason for its success, at least in the House, is mainly explained by lawmakers wanting to distance themselves from the corruption scandal involving Jack Abramoff, the convicted lobbyist, and his association with Indian casinos. Abramoff had lobbied vigorously against versions of the bill in the past. Still, some politicians in the House came out strongly against the bill, including Representative Barney Frank, Democrat of Massachusetts, who called it "cultural authoritarianism."

Industry executives and analysts say similar bills have failed in the Senate, and many feel that it is unlikely to gain traction there.

Nevertheless, executives, lawyers and analysts say that Washington, depending on the resources it is willing to commit, can at least make life more miserable for the offshore casinos.