Cato Institute
Policy Analysis
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facilitate the distribution of gambling proceeds.23   Still
other federal laws may apply to Internet gambling.24
Federal law enforcement agents thus lack not the authority
but the will to go after Internet gambling.
The Justice Department has admitted that federal law
already prohibits transmitting gambling information via the
Internet but confesses that enforcing the law "isn't one
of our priorities."25   Even Senator Kyl's office admits
that he "has the view that it is already against the law
to gamble on the Internet."26   Given that courts have hard-
ly had a chance to apply existing laws to Internet gaming,
why would Congress rush to pass new and potentially unnec-
essary legislation?
A close look at recent legislative proposals suggests
that, by invoking the supposed need to address the horrors
of Internet gambling, Congress aims to expand federal power
over both currently legal gambling activities and the
Internet as a whole.  Enforcing the proposed statutes would
require law enforcement officials to engage in detailed,
constant, and intrusive monitoring of citizens' Internet
use.  That would wreak havoc on the Internet and our civil
liberties while doing little to inhibit Internet gambling.
The Kyl Bill
Senator Kyl's Internet Gambling Prohibition Act of
1997 initially banned every sort of online commercial con-
test, everywhere in the United States, for everyone
involved.27   That blanket prohibition stirred up a swarm of
lobbyists,28 however, and Kyl amended the bill.  As passed
by the Senate in 1998,29 Kyl's bill included a loophole for
certain sectors of the incumbent gambling industry, such
as state lotteries and intrastate parimutuel activities,
when conducted by parties licensed under state or federal
law.30   Another loophole exempted widely popular fantasy
sport leagues from prosecution.31   Apart from those conces-
sions to special interests, Kyl's bill continued to sub-
ject Internet gambling to a blanket ban.32   The Internet
Gambling Prohibition Act failed to make it to the presi-
dent's desk in 1998, but Kyl has vowed to renew his fight
in the 106th Congress.33
Kyl presented his bill as merely an update of the
Wire Act, a federal statute that already regulates wager-
ing over the wires.  In fact, however, Kyl targeted
Internet gambling for new and special penalties.  His bill
would subject amateur bettors to federal liability for
gambling,34 whereas the Wire Act applies only to people