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Commission Recommends Ban on Net Gambling

13 February 1999

A National Gambling Impact Study Commission subcommittee voted 3-0 this week in Virginia Beach, Va. to recommend a ban on Internet gambling despite a strong argument by the Interactive Gaming Council (IGC) and warnings from members of the Commission that a ban isn't enforceable.

IGC Vice Chairman Albert Angel argued in his testimony before the Commission that prohibition will fail with Internet Gambling just as it failed with alcohol. He called on the Commission to instead endorse a comprehensive system of federal, state, and international regulation of the online gaming industry. "We believe that the best way to ensure that consumers are protected, children are kept from accessing online gaming sites, and those with gambling problems get the help they need is to craft a comprehensive regulatory framework," he said.

Angel outlined four principles for an effective regulatory regime in the United States: jurisdiction, licensure, enforcement, and respect for states' rights. The Commission, however, was unwilling to sway. "A majority of commissioners appear willing to leave consumers defenseless and ignore the regulatory benefits of evolving technology in favor of a morality-based outcome," Angel said.

"What's disappointing is that the Commission has rejected common-sense regulation, even though most recognize that it would be far more effective than an old-style federal prohibition," he added.

The Gaming Council will push for adoption of a regulatory model when Congress reviews the Commission's report.

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