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President Bush signed legislation October 13 that bans Internet gambling, including all forms of sports wagering.
Internet gambling has always been illegal but difficult to enforce through state and federal laws. Under the new legislation, credit card companies and other financial institutions now will be held responsible if they process payments for online gambling activity.
Facing increased scrutiny and legal ramifications for lack of compliance, financial intermediaries that have settled Internet gambling debts in the past will now play a role in preventing wagers from being placed.
The new law affects all forms of Internet gambling and should significantly influence the amount of wagering on intercollegiate athletics.
"If you look at the population that is on the Internet and engaging in gambling, it’s usually made up of men in their 20s. That hits our student-athlete population right on, so it obviously affects those we work with every day," said Rachel Newman-Baker, NCAA director of agents, gambling and amateurism activities. "We still have a long way to go, but this will certainly be a deterrent."
Because of the ease of online betting, many cybergamblers have started out with a few dollars in their accounts and have progressed into making major wagers on poker, college and professional sporting events, and other online games.
"The Internet is a great starting point. People may start with a little poker or something on that scale, and it seems to transition to other forms of gambling with more money involved," Newman-Baker said. "Once that starts happening, we see the behavior shift. It all runs together."
With the proliferation of Internet use during the past decade, the NCAA and professional sports leagues have been working diligently toward Congressional action.
"We’ve worked on it with the NCAA as a partner for the last 10 years," said Marty Gold, a lawyer at Covington and Burling and counsel for the National Football League. "We both have the same motive — to protect the integrity of American athletics. In the past, we have allied on issues of this nature. To finally complete this after 10 years is a fabulous accomplishment."
Gold believes Internet gambling has created a negative culture surrounding both professional and collegiate contests.
"If you create a culture of gambling around these games, it creates an impression that something other than honest competition determines the outcome," Gold said. "Whether you’re talking about an actual sense of corruption or the appearance of corruption, either undermines American sports as wholesome competition and family entertainment."
Rep. James Leach (R-Iowa) has spent years working on legislation to stop Internet gambling — in large part because he believes it has a detrimental effect on U.S. families.
"It is extraordinary how many American families have been touched by large losses from Internet gambling," said Leach in a statement on his Web site. "Internet gambling’s characteristics are unique. Never has it been so easy to lose so much money so quickly at such a young age. The casino is in effect brought to the home, office and college dorm."
It will take time to measure the actual impact of the new legislation, but Gold believes law enforcement officials now have what they need to curb Internet gambling.
"The law is clear about sports betting, but criminal prosecution by itself was not an effective enforcement tool to reach activity originating overseas," Gold said. "It was plain that you had to pass additional legislation to create further enforcement tools to make sure that the laws we have on the books against sports betting can be enforced."
Newman-Baker praised the passing of the Unlawful Internet Gambling Enforcement Act, but she said work remains in the fight against sports wagering.
"Anything that helps us combat sports wagering is positive," Newman-Baker said. "The ultimate goal is to protect the integrity of the game and the well-being of our student-athletes. This takes us a step closer toward that goal."
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