Law Is Unlikely to Corral Internet Gambling

LAW IS UNLIKELY TO CORRAL INTERNET GAMBLING
[SOURCE: Wall Street Journal, AUTHOR: David Wessel]
[Commentary] Politicians often proclaim that government should keep its hands off the Internet lest it be strangled. But almost any issue that draws congressional scrutiny -- pornography, privacy, piracy, prescription-drug prices, taxes, consumer-lending practices -- is now intertwined with the Internet. Last week's passage of a federal law to explicitly restrict Internet gambling -- a ban on using banks, credit cards and online money transfers to pass money between bettor and "unlawful" gambling site -- shows how tricky regulating the Internet can be. Applying old laws to new technologies is messy: The Justice Department and the gambling industry disagree on whether existing federal law permits or bans Internet betting on horse racing. Ignoring the reach of the Internet can expose vulnerable consumers to rip-offs by unscrupulous Web sites: Requiring licenses for barbers and bricks-and-mortar casinos but letting Internet gambling sites take billions from Americans without any oversight is somewhere between foolish and irresponsible. Passing new laws, however, can be messy, too. Make them too tough, and businesses move offshore. Make them too loose, and they make lofty promises without practical effect. The Internet gambling saga is rich. There's the tension between the puritanical and libertarian strains among Republicans. There's maneuvering by U.S. casino companies eyeing what is said to be a $12 billion global market, which is regulated and taxed in other countries. There's the stench of scandal: Disgraced lobbyist Jack Abramoff helped thwart earlier legislative assaults on Internet gambling, and some Republicans backed the new law to show that Mr. Abramoff is history. And there's presidential politics: Senate leader Bill Frist is courting antigambling social conservatives. So what did Congress do? It did not resolve the contentious issue of what constitutes "unlawful Internet gambling."
http://online.wsj.com/article/SB116000171991583025.html?mod=todays_us_page_one
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