Taking another shot at the Internet Gambling industry, the House Banking Committee yesterday passed the Internet Gambling Funding Prohibition Act, sponsored by Committee Chairman Jim Leach (R-Iowa) and Ranking Member John LaFalce (D-NY).

Claiming to have more "teeth" than the Internet Gambling Prohibition Act (also known as the Kyl bill), which passed the Judiciary committee in May but has since been tied up with jurisdictional problems, Leach's bill will effectively outlaw the use of credit cards, checks, or money transfers to place online bets.

This differs from the Kyl bill, which criminalizes the actual betting sites but makes no mention of barring payment.

"I believe strongly that Internet gambling represents a threat to many vulnerable segments of our population," said LaFalce. "Probably the most vulnerable... are the ones who are being the most adversely affected -- especially our young people, who know the Internet medium so well, and who are so active with its use, and who are the recipients of literally dozens of credit cards, each with their own credit limit." An amendment to the bill incorporated some Justice and Treasury Department proposals designed to shore up enforcement. Next stop for the bill is the House floor. If it is approved by the House, it will then be sent to the Senate for approval. So far, there is no timetable for this action.

Simon Gros is Legislative Associate at Kessler and Associates Business Services, inc. He can be reached by email at SGros@kesslerassoc.com