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Non-Tech : venturetech VTEH bullettin board -- Ignore unavailable to you. Want to Upgrade?

To: borb who wrote (361)	2/4/1998 9:46:00 PM
From: Aloysius Q. Finnegan	Respond to of 913

Following Bloomberg story just posted on VTEH website: Congress Should Regulate, Not Ban, Online Gambling Washington, Feb. 4 (Bloomberg) -- The U.S. Congress should regulate -- not prohibit -- Internet gambling, gaming industry representatives and regulators told a congressional subcommittee. Making it illegal for Americans to place a bet on the Internet ''would do nothing more than create a black market,'' Frank Miller, past president of the North American Gaming Regulators Association, told the House Judiciary Subcommittee on Crime. Clear, unambiguous federal regulation, however, would give states the ability to apply their laws -- and impose taxes -- on the growing Internet gambling industry, he and other industry representatives said. ''Legitimate operators would welcome U.S. regulation and expect taxation -- they would rather just work'' in America, said Sue Schneider, chairwoman of the Interactive Gaming Council and managing editor of the Internet gaming magazine Rolling Good Times OnLine. Current law restricts online sites from operating in the U.S., but no federal law keeps Americans from betting on casino games or sporting events with bookies stationed outside U.S. borders. Anyone with about $1.5 million can set up shop and be licensed in the Caribbean and West Indies. Analysts expect the online gaming industry to be worth $10 billion by 2000. Prosecution Hard A number of state attorneys general have tried to prosecute betters under state gambling laws and consumer product laws, but the laws are inconsistent and often murky, and it's hard to prosecute. Legislation introduced in the House and Senate would ban all types of interstate online gambling and give law enforcement officials new tools to enforce the ban. The legislation, which has bipartisan support, was sparked by concerns of increased underage and problem gambling, as well as consumer fraud, but industry officials say they go too far. The bills ''are an attempt to apply a 19th century solution to a 21st century question,'' Schneider said. ''They would create laws that even the Justice Department has said are unenforceable.'' At today's hearing Rep. Bob Goodlatte of Virginia, a Republican sponsor of the ban, said he would consider regulation over prohibition. Turning Away Americans To avoid aggressive attorney generals and possibly federal litigation, some in the online casino industry are closing their doors to Americans. Publicly traded VentureTech Inc., which plans to launch a virtual casino in the second quarter of 1998, is targeting betters in Europe, Asia and the Middle East only. ''We recognize that regulation is a practical part of the industry so people feel comfortable that they're dealing with a legitimate company,'' said Art Rosenberg, chief operating officer of VentureTech Inc. The company will be operating its virtual casino out of the Caribbean island of St. Kitts with an investment of ''hundreds of thousands of dollars,'' Rosenberg said. Another publicly traded company, First Entertainment Holding Corp., will accept money only from betters outside the U.S. when it opens its site out of the West Indies at the end of the month. Americans can play the games, but they can't pay (or collect). ''We'll let other people be the guinea pigs,'' said Steve Goodman, director of investor relations at First Entertainment, a Denver-based multimedia company. ''We don't need to spend time in court . . . there's such a vast market outside the U.S.'' --Mindy Charski in the Washington newsroom (202) 624-1820/mmw -------------------------------------------------------------------------------- c Copyright 1998, Bloomberg L.P. All Rights Reserved.