U.S. representative arguing against UIGEA using incorrect information?

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An editorial written by Rep. Spencer Bachus (R-Ala.) argues that the United States should keep the Unlawful Internet Gambling Enforcement Act, but uses incorrect information to back up his argument, according to a press release issued by The Safe and Secure Internet Gambling Initiative.

The article, headlined “Viewpoint: Blocking Web Gambling Rules Would Be Mistake” and published in Amercan Banker, comes on the day when the House Committee on Financial Services is scheduled to vote on Payments System Protection Act (H.R. 5767), that would block implementation of the UIGEA.

According to the press release:

“It is unfortunate that Rep. Bachus is using scare tactics to argue for the continued prohibition of Internet gambling,” said Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling Initiative. “The reality is that regulated Internet gambling, which is clearly working in the U.K. and other parts of the world, can utilize technology to offer strong consumer protections to combat underage and compulsive gambling in the U.S. Currently, prohibition leaves millions of Americans susceptible as they continue to gamble in an underground, uncontrolled marketplace without such guaranteed protections.”

Whole thing here.

The release takes issue with several of Bachus’ statements. For instance, Bachus writes, “Since the law (UIGEA) was passed, gamblers and businesses engaged in Internet gambling have been deterred by the fear it would be enforced.” The release says that online gambling has increased worldwide by 10% since the law was passed, and millions of Americans continue to gamble online.

Bachus also writes, “The law (UIGEA) passed with the support of a broad coalition that
included…the American Bankers Association…” In fact, the American Bankers Association and other companies and associations affected by the UIGEA said they oppose the law and its implementation in Congressional hearings held in April.

The release goes on to note other inaccuracies and flaws in Bachus’ logic.

We’ll have more coverage on HR 5767 as it progresses though Congress.