House frustrated with UIGEA exceptions

The House JudiciaryCommittee didn't signal whether it was interested in repealing Unlawful Internet Gambling Enforcement Act (UIGEA), but it did voice its frustration with inconsistent nature of gambling laws and prosecution at a House hearing Wednesday.

The Democratic chairman of the committee, John Conyers, openly questioned the "selective enforcement" of anti-gambling laws. Rep. Shelley Berkley (D-Nev.) to her criticism a step further.

"The laws regarding Internet gaming are absurd and inconsistent," Berkley said. "And the UIGEA has made things worse, targeting the financial sector and creating a hypocritical carve out for horse betting."

Berkley also blasted the government's decision to remove online gambling from its WTO commitments.

"It's the trade equivalent of taking our ball and going home," Berkley said before noting the U.S. is now on the hook for a substantial amount of money as a result of that decision.

Berkley would like to see Internet gambling regulated in the U.S., and has proposed conducting a study that would provide Congress data to help make that decision.

Opponents of online gambling, meanwhile, tried to keep the focus of the hearing on problem gambling, protecting youths and state's rights.

Rep. Lamar Smith (R-Tex.) called Internet gambling "fronts for money laundering and terrorists." He also said that gambling online leads to addictive gambling and claimed that children can play online without having their ages verified.

But the most interesting testimony came from U.S. Attorney Catherine Hanaway. Hanaway, representing the Department of Justice, noted that it was legal for American players to place bets online, but that it was illegal of casino operators to accept those bets.

Hanaway also said repeatedly that "all online gambling is illegal." But she did note that the DOJ had not seen a case in which online gambling was used to launder anything other than gambling winnings.

The two funniest moments in the hearing came during question and answer sessions. Deep into the session, Family Research Council Vice President Tom McClusky admitted that his organization wasn't just opposed to online gambling, but all forms of gambling, At that point, Rep. Stephen Cohen (D-Tenn.) was asked McClusky if he "was opposed to all forms of fun."

Rep. Bob Goodlatte (R-VA) provided the other humorous moment when he said that there was no wagering in fantasy sports and that's why America's youths are allowed to participate in it. No one in the chamber chose to laugh, but the absolute silence that followed that statement spoke volumes.

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