Internet gambling came under heavy fire of US authorities and lobbyists. US government has clearly failed to recognize the reality of online gambling and succumbed into meaningless denial. As it is clearly absurd to try and impose a direct ban on Internet casino gambling the government is trying to work around the common sense by placing legal limitations that will prohibit American financial institutions from processing any transactions related to online casinos. The government's apparent belief that it should substitute itself for moral self-regulation and freedom of choice of its electors is a clear attempt to undermine American civil liberties. However, the government and in particular the Justice Department can not clearly establish that online gambling is illegal because it is in fact not so instead they resort to literally harassing financial institutions that process payments for online casinos
Here is an example of "reasoning" taken from the that speaks about the Internet Gambling Prohibition Act of 1999: "The negative consequences of online gambling can be as detrimental to the families and communities of addictive gamblers as if a bricks and mortar casino was built right next door. Online gambling can result in addiction, bankruptcy, divorce, crime, and moral decline just as with traditional forms of gambling, the costs of which must ultimately be borne by society." News flash: so can be drinking, smoking, having sex, having a job, travelling and fishing.
The prohibition that the government is trying to impose serves no sensible purpose; instead it relieves the Senate from its direct responsibility of taking meaningful strategic decisions. The usual reasoning of "protecting minors" and "helping addicted gamblers" does not withstand any scrutiny of the real world. Even if minors could legally obtain means of payment necessary to participate in online casino gambling (which is absolutely the case with "real" land casinos), even if addicted gamblers could not walk into "real" casinos whenever they please (which they can and not living in Nevada is still not an excuse that could possibly invalidate the argument) the absurdity and weakness of this line of thought is obvious. Other arguments for global and permanent prohibition of Internet gambling in United States like the so-called danger of a "per state ban of online casinos being unenforceable due to global nature of the Internet" are so laughable that even legislators themselves seem to be having trouble taking them seriously.
Another quote from the same web page that promotes the Act should be brought up here. "There are currently no mechanisms in place to prevent youths -- who make up the largest percentage of Internet users -- from using their parents' credit card numbers to register and set up accounts for use at Internet gambling sites." It somehow does not bother the legislators that the mere use of someone else's credit card - even your own parents' - and even with their explicit consent - is a breach of contract with any credit card company. This strange way of making conclusions completely ignores the fact that using someone else's credit card online involves submitting personal verification details which happens to be theft of identity that is a federal offense. It does not in any way bother the legislators that the parents themselves should not give their children unrestricted access to their credit cards in the same way they should not give them unrestricted access to firearms and car keys. As usually, the legislation tries to take away the parents' responsibility from the family and delegate it to federal authorities by way of villification of online gambling, ironically under the guise of "family values".
Or.. take look at this: "The more than 700 gambling websites from the Caribbean and elsewhere are unlicensed, untaxed, and unregulated by any state, and thus violate all 50 state laws in which they are available. That is why state attorneys general, pro-family/anti-gambling groups, professional and amateur sports leagues, and the Department of Justice all agree that some federal legislation is needed to clarify federal law that Internet gambling businesses are illegal." So how about making them licensed, taxed and regulated like a normal person's logic would suggest?
It makes no any sense whatsoever to outlaw and make it criminal to participate in online activity that is otherwise legal and is even more accessible in "real" life. To try and promote such approarch is not only counterproductive but represents a downright dangerous (never mind hypocritical) precedent that opens a wide abuse potential for those in American government who think that an adult should not be trusted with making choices and that government should be authorized to participate in parenthood of the next generation on equal terms with the family itself.
Instead of taking the online casino business into its hands by providing strict online casino licensing and maintaining strong consumer protection the government is trying to pretend there's no healthy market demand for Internet gambling. It is self evident that any steps trying to outlaw Internet casino operation in United States will not in any way "improve" the situation or "protect" the "vulnerable" parts of society against the alleged "evils" of gambling. Amusing enough, the history seems to repeat itself with respect to online casinos; the legislation seems to be going the same way it was for land gambling houses. Apparently 200 years of social progress didn't teach some of us that people should have a choice and can be trusted to be responsible for themselves. Simple laws of the market say that where there's demand there's supply. Instead of doing anything it was intended to do, this "war on online casinos" will stand in the same line with "war on drugs" and "war on alcoholism": it will kick the online casino industry underground and push it even deeper offshore where it will immediately become corrupt and criminalized, becoming yet another part of international organized crime while depriving United States of potential billion sized (quote: "[...] Bear, Stearns & Co. Inc. reported that there were then at least 650 Internet gambling websites, and that total revenues for 1999 had been $1.2 billion (an 80% increase from 1998) and would grow to $3 billion by 2002. [...]") and legitimate income through legal American businesses.
Needless to say that the H.R. 3125 never made it into becoming a law; but that doesn't seem to keep anyone away from trying to attack online gambling industry from all directions and employing workaround tactics such as the infamous Wire Act of 1960 that is established to be of very vague relevance to online gambling..
If you are a citizen of United States of America these issue should concern you. We encourage you to consider enforcing your rights and keeping your government in check. For more referrence and opportunity to help out and participate, we suggest reading the and materials of which is a non-profit international organization that deals with interactive gaming issues, including online casinos.