Brief History of Internet Gambling Legislation
Brief History of Internet Gambling Legislation
A Timeline of Key Congressional Actions
104th Congress
December 1995
Senator Jon Kyl introduces S. 1495, the Crime Prevention Act of 1995. Based on a request from the State Attorneys General, the bill includes a brief title amending the Wire Act to clarify that non-sports betting is prohibited.
On the same day, the House Committee on the Judiciary amends H.R. 497, the National Gambling Impact Study Commission Act, to include an assessment of Internet gambling.
August 1996
The National Gambling Impact Study Commission Act (Pub. L. 104-169) is signed into law by President Clinton, including the study of Internet gambling.
105th Congress
March 1997
Sen. Kyl introduces S. 474, the Internet Gambling Prohibition Act of 1997, expanding slightly on the legislation proposed in the previous Congress. Rep. Bob Goodlatte introduces a companion bill in September.
July 1998
Sen. Kyl and Sen. Richard Bryan offer the Internet Gambling Prohibition Act of 1998 as an amendment to an appropriations bill. This bill includes new injunctive authority aimed at taking down or disabling access to illegal gambling websites. The amendment passes the Senate 90-10 (Record Vote 229).
106th Congress
June 1999
The National Gambling Impact Study Commission issues its report, recommending legislation that blocks money transfers to offshore gambling websites, and recommends against the legalization of any new forms of Internet gambling.
November 1999
S. 629, the Internet Gambling Prohibition Act of 1999, passes the Senate by unanimous consent. This bill continues to expand on injunctions against computer services as the method for enforcing the prohibition.
Summer 2000
The House Committee on Judiciary reports H.R. 3125, Rep. Bob Goodlatte’s companion to the Senate-passed bill, by a vote of 21-8. House Leadership places the bill on the suspension calendar, which requires a 2/3 vote for passage. Rumors circulate on the Hill about “carve-outs” that would “expand gambling on the Internet.” Unbeknownst to many at the time, many of these rumors originate with Jack Abramoff, who is trying to kill the bill on behalf of his client, eLottery. The bill receives a favorable vote of 245-159 (Roll Call 404), but short of the 2/3 vote required.
Meanwhile, Rep. Jim Leach introduces H.R. 4419, the Internet Gambling Funding Prohibition Act. This is the first bill to focus on blocking financial transactions, based on the recommendations of the National Gambling Impact Study Commission. The Financial Services Committee holds a public hearing and revises the bill on that basis.
107th Congress
Throughout 2001
The House of Representatives considers and revises the reintroduced Leach bill (H.R. 556). The House Financial Services and Judiciary Committees both hold public hearings.
Meanwhile, Rep. Goodlatte reintroduces the Abramoff-scuttled bill as the Combating Illegal Gambling Reform and Modernization Act. The new Goodlatte bill includes revisions based on concerns raised by the Department of Justice in the previous Congress.
October 2002
H.R. 556, the Leach-LaFalce Internet Gambling Enforcement Act, is considered by the House of Representatives under suspension of the rules. The revised bill turns to regulations developed by the Department of Treasury as the central tool for blocking financial transactions. It also incorporates some elements of Rep. Goodlatte’s bill. The bill passes the House of Representatives by a voice vote.
108th Congress
March 2003
The House Financial Services Committee reports the same bill that passed in October 2002, renamed the Unlawful Internet Gambling Funding Prohibition Act (H.R. 21).
Senator Jon Kyl introduces companion legislation in the Senate (S. 627) and hearings are held in the Senate Banking Committee.
June 2003
After a “strengthening” amendment passes the House Committee on the Judiciary but proves to be a poison pill, Rep. Spencer Bachus introduces a similar bill that only authorizes financial regulations, to circumvent Judiciary jurisdiction. The Bachus version of the bill (H.R. 2143) passes the House of Representatives 319-104 (Roll Call 255)
July 2003
The Senate version of the bill meets a similar fate to H.R. 21, succumbing to “strengthening” committee amendments that result in fatal opposition to the bill. The Bachus bill is never considered on the Senate side.
109th Congress
Fall 2005
The Washington Post publishes a front page exposé chronicling how Jack Abramoff had corrupted the Internet gambling votes in 2000. A few weeks later, Rep. Leach introduces H.R. 4411, the Unlawful Internet Gambling Enforcement Act of 2005, a further revision of his previous bills. In February 2006, Rep. Goodlatte reintroduces his bill from the 106th Congress, now H.R. 4777.
Spring 2006
The House Financial Services Committee reports H.R. 4411 by a voice vote. The House Judiciary Committee holds a hearing on H.R. 4777, and reports both bills. Then the sponsors and committees negotiate a merged bill, combining the Wire Act amendments from H.R. 4777 with the financial regulations from H.R. 4411, and injunctive remedies found in both bills.
July 2006
The House of Representatives votes 317-93 in favor of the Goodlatte-Leach bill (Roll Call 363). The chairmen of the Senate Banking and Judiciary Committees waive jurisdiction and the bill goes directly to the Senate calendar, but a few Senators place holds on the bill and express preference for the pre-merger version of H.R. 4411.
September 2006
Senate Majority Leader Bill Frist seeks to attach the text of the Leach bill to any available vehicle to expedite passage in the Senate. The conferees for a port security bill sign off on including the language in the conference report. The port security bill is passed by both Houses, and the Members are fully aware of the inclusion of Internet gambling provisions at the time of the vote. President Bush signs it into law on October 13, 2006.
