House Committee Concludes Online Sports Betting Should be Legal

Barney Frank wants to know why the major sports leagues in the United States have such power and ability to dictate laws that the citizens of America must follow.

A major bill that would declare the only form of illegal betting on the Internet to be that of betting on sports is confusing to many members of the House Financial Services Committee. Especially since there are carve-outs in the Bill that allow horse race betting, as well as Fantasy sports wagering.

In a hearing held today to mark up and vote on Bill HR 6870, which would clarify the UIGEA, many members of the House Financial Services Committee expressed pure wonderment as to why the major sports leagues have such power in governing the American people.

Congressman William Lacy Clay (D-MO) suggested that it makes no sense to allow sports betting in every Las Vegas casino, while not allowing it on the Internet.

The question has also been raised as to whether these laws are breaking WTO rules of protectionism. According to WTO protectionism rules, since betting on sports is legal in the United States in some states, non-US companies should also be allowed to profit from the business. Members of the EU delegation are in Washington this week to discuss such issues.

Congressman Frank, the chairman of the House committee, added that it should not be government's role to tell the American people how to spend their money and leisure time. And it certainly should not be the role of major sports leagues.

Frank suggested that all vices may be abused by a few, but that the government should not then ban all perceived vices. Following the logic of banning online gambling, then alcohol should be banned, cigarettes should be banned, even eBay, Amazon.com, and other activities, that if done to excess can harm an individual, should be banned.

The Bill in question did not pass in a prior committee vote because there were no exceptions for sports leagues. The sports leagues lobbied hard and now they have a bill that allows them to follow, or not follow, the law if they so choose. As private institutions the major sports leagues have unprecedented governmental power.

Although sports betting of all kinds is perceived by the general public to be a naughty industry run by mobs and abused by degenerates, a large majority of the general public has been known to bet on sporting events of some kind at some time or another. This then should be considered a prohibition and there should be a large public outrage. However, because the activity is technically illegal and citizens fear prosecution that outcry will likely never be voiced.

All that being said, Bill HR 6870 did pass today by a 30-19 vote and it will now move on to the House floor, if it can be fit in at all this year. This is an unlikely scenario and as a whole the gambling laws in the United States are hugely contradictory and very American.

September 16, 2008
Posted By Bob Hartman
Staff Editor, CasinoGamblingWeb.com
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