U.S. Senators Slam Online Gambling Regulations

A Senate panel looks to revise online gambling rules.

July 18, 2013

WASHINGTON – A Senate panel earlier this week blasted outdated regulations that make it easy for anyone, regardless of age, to gamble online without proving their identity. The Hill reports that lawmakers on the Senate Commerce Subcommittee on Consumer Protection, Product Safety and Insurance said more regulations are needed to prevent minors from gambling online, as well as money launderers from profiting from online gambling sites.

“Shame on us if we don’t get something done on this because when I think about the possibility for money laundering, terrorism, drug trafficking and the potential for children to get access to use the Internet as well as people to add to the addiction issue, I hope this is something that we move on very quickly,” said Sen. Kelly Ayotte (R-NH).

The senators urged action to address the significant risks: "Congress needs to provide clarity and guidance on these issues," said Sen. Dean Heller (R-NV). "If we do not, this illegal market will continue to grow where millions of consumers are put at risk and criminals can act freely." 

All of the senators present expressed a desire to tighten up laws, framing the issue as one of security. 

“I think there’s a clear moral and economic imperative to acting to prevent the abuses and wrongdoing that clearly are inherent, almost inescapable, in this form of gambling, if we fail to take effective countermeasures,” said Sen. Richard Blumenthal (D-CT) 

Online gambling is lightly regulated, especially following a 2011 Justice Department decision that laws against interstate betting via telecommunications only apply to sports betting, not other games like poker and lotteries. Since then, some states have decided to legalize online gambling within their borders, a move that the senators criticized as creating uncertainty across the country.

“Patchwork state and tribal regulations have sparked a regulatory race to the bottom,” said Heller. “I would like to put together a piece of legislation, as does Sen. Reid, but we want broad support,” he said after the hearing. “I don’t want this to be a Sen. Reid and Sen. Heller piece of legislation. I want broad support.”

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