Unfortunate, but not new... See, from Oct 2001: "House panel bravely thwarts terrorists -- by banning Net-gambling" http://www.politechbot.com/p-02649.html -Declan --- Subject: CEI's Weekly Commentary: E-commerce and Terrorism Date: Wed, 22 Jan 2003 15:34:11 -0500 From: "Richard Morrison" <rmorrisonat_private> CEI C:\SPIN This issue - Regulation Roulette: E-commerce and Terrorism. This week's c:\spin is by Braden Cox, Technology Counsel, Project on Technology and Innovation, CEI, January 22, 2003. On January 7, 2003, Rep. James Leach, R.-Iowa, introduced yet another internet gambling bill, the Unlawful Internet Gambling Funding Prohibition Act (H.R. 21 surely just a coincidence to the card game 21 or Blackjack ). The bill is the same text as H.R. 556, a bill passed by voice vote in the House last Congress that failed to move in the Senate before the end of session. The bill does not prohibit internet gambling outright. Rather, it indirectly shuts down online gambling by prohibiting banks from processing bank instrument transactions that involve unlawful internet gambling web sites. Those in the technology industry should follow the movements of this bill because it attempts to regulate electronic commerce in the name of fighting terrorism. The means by which consumers and gambling site owners interact credit card payments and wire transfers also happens to be a medium open to abuse by those with criminal intentions. If you prohibit the credit card payments, then you negate the possibility that some of these payments will go to terrorists. According to Rep. Joseph Pitt, R-Pa, it may be impossible to keep illegal gambling sites off the World Wide Web, but it is entirely possible to prevent American credit card companies from completing these transactions that these crooks need to make their money. The text of the bill states that law enforcement has identified internet gambling as a significant money laundering vulnerability (emphasis added). The bill s line of reasoning goes something like this: internet gambling consumers pay by use of credit cards and wire transfers; credit cards and wire transfers are payment mechanisms often utilized by criminal money laundering operations; terrorists utilize money laundering schemes; therefore, some consumers of internet gambling may in fact be criminals laundering money to further terrorism. Casual references to an activity s potential link to terrorism are the latest vogue amongst advocates of regulation, whether the target is sport utility vehicles, illegal drugs, or internet gambling. Certain industries are more at risk than others to regulation in the name of preventing terrorism. Carried to its logical conclusion, though, the areas of technology and e-commerce are especially vulnerable to regulation in the name of terrorism. E-commerce by its very nature is a simple business channel for almost anyone to make a buck (if not a profit). EBay and other websites have turned millions of individuals into entrepreneurs and small business owners. However, what facilitates legitimate business concerns also makes it opportune for those with illegal motives. Anonymity and the easy flow of funds are a boon to those surreptitiously conducting illegal activity. Mr. Leach doesn t mind that this bill would in effect prohibit internet gambling. His recent press release states that internet gambling serves no legitimate purpose in our society. The millions of individuals that use these sites, whether it is for traditional casino style gambling, fantasy leagues, or the ubiquitous Super Bowl office pool, might disagree with Mr. Leach about the value of internet gambling. Legislators and the public should be wary of the tactic of prohibiting ordinary business activities just because there might be remote and indirect links to terrorism. Terrorism is a life or death concern that should not be used by those with regulatory agendas in an emotionally manipulative way. E-commerce furthers the advancement of commercial dealings between consumers, their banks, and business owners so that transactions happen in real time between strangers without knowledge of one another s motives. Regulation because someone might use the benefits of e-commerce for illegal purposes is a bad idea. C:\SPIN is produced by the Competitive Enterprise Institute. ------------------------------------------------------------------------- POLITECH -- Declan McCullagh's politics and technology mailing list You may redistribute this message freely if you include this notice. To subscribe to Politech: http://www.politechbot.com/info/subscribe.html This message is archived at http://www.politechbot.com/ Declan McCullagh's photographs are at http://www.mccullagh.org/ ------------------------------------------------------------------------- Like Politech? Make a donation here: http://www.politechbot.com/donate/ Recent CNET News.com articles: http://news.search.com/search?q\clan -------------------------------------------------------------------------
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