The House committee yesterday approved a bill aimed at making online gambling illegal. The bill, brought by congressmen Bob Goodlatte of Virginia, John Kyl of Arizona and Rep. Jim Leach of Iowa Goodlatte will now go to the House floor for consideration.

The bill is aimed once again at the financial component of internet gambling and would prohibit wire transfers, credit cards and electronic funds transfers from making illegal transactions related to gambling. The bill will exclude horse racing and fantasy leagues.

Instead of finding much support in the US media, the move has elicited a number of articles attacking the bill - including large editorial pieces in the LA Times and more surprisingly, in the conservative Fox News

Both articles are supporting the regulation of online gambling in the US - currently a $12 billion a year industry - 50% of which comes from the US. There is also the issue of a violation of privacy and individual freedom. The support for this also comes from top Democratic on the House Committee, Barney Frank who believes that adults should have a right to spend money how they seem fit.

A group called the Poker Players Alliance opposed the legislation as well. "It is disingenuous to oppose Internet gambling and then write a bill that makes select forms of online gambling legal," said Michael Bolcerek, president of the group. Read More

Radley Balko, on the Fox News website is disturbed by the potential result of any gambling bill that affects individuals. It could mean that banks and ISPs would be forced to 'sniff out' any illegal activity from their customers. Essentially, it'll force these private enterprises into turning into their own law enforcement agencies against their customers.

Depending on which version of the various Internet gambling prohibition bills passes, these companies could also end up bearing staggering compliance costs. Which, of course, they'll then pass on to consumers.

Balko is also suspicious that this is a reaction to the current scandal concerning disgraced lobbyist Jack Abramoff - who used to work to prevent any potential online gambling bill. He believes its a personal crusade - to prove that congress are not under the influence of Abramoff.

David Carruthers, the CEO of BetonSports.com writes in the LA Times that with regulation the US could address the issues of underage gambling, compulsive gambling and corruption. Currently, the internet gambling industry are working to prevent any forms of gambling abuse - rather than an outdated American political belief that online betting companies are creating the abuse. He points to the UK who are currently regulating the industry

It is time for the U.S. government to face the facts: The issue is not whether it is possible to stop online gambling; the issue is how to regulate a business that not only exists but is growing. We have begun the process by working to create an independent advisory council to establish operating standards acceptable to everyone. Not only would regulation strengthen companies that wish to operate responsibly, but legalizing our companies could also bring in billions of dollars in tax revenue. That' s one gamble that would generate benefits for all Americans. Read More

So how would this bill affect the average American?

• This bill would make many millions of Americans criminals.
• They would not be allowed to play poker online.
• An increase in illegal US betting outlets
• No protection for potential corruption
• Potential to be spied on by their ISP and bank
• Less chances to enter WPT or WSOP tournaments

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- House panel OKs bill to stop Net gambling