U.S. House of Representatives Passes Legislation Criminalizing Internet Gambling

On October 1, 2002, the U.S. House of Representatives passed by voice vote proposed legislation (H.R. 556) to criminalize Internet gambling and facilitate the targeting of financial intermediaries and Internet Service Providers. The bill establishes a new crime ? accepting identifiable instruments such as credit cards or fund transfers for debts incurred in illegal Internet gambling. In the effort to persuade members of the House to pass the bill, proponents cited a 2001-2002 FATF report on money laundering typologies indicating evidence exists in some FATF jurisdictions that criminals are using the Internet gambling industry to commit crime and to launder the proceeds thereof. The bill also increases the penalties for violating the Wire Act in 18 U.S.C. §1084(a) from 2 years to 5 years.