Cato Institute
Policy Analysis
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37. Sutin, p. 1.
38. Internet Gambling Prohibition Act of 1998, Amendment
to S. 2260, § 1085(b)-(c), generally prohibits participat-
ing in or conducting the business of Internet gambling;
section 1085(e) exempts from prosecution only intrastate
wagers on state lotteries or licensed parimutuel activi-
ties, or wagers by persons physically located on duly
licensed Indian gaming sites.
39. 18 U.S.C.S. § 1084(b): "Nothing in this section shall
be construed to prevent . . . the transmission of informa-
tion assisting in the placing of bets or wagers on a
sporting event or contest from a State or foreign country
where betting on that sporting event or contest is legal
into a State or foreign country in which such betting is
legal."
40. See the definition of "interactive computer service"
in Internet Gambling Prohibition Act of 1998, Amendment to
S. 2260, § 1085(a)(3).
41. 18 U.S.C.S. § 1084(a).
42. Internet Gambling Prohibition Act of 1997, H.R. 2380
(introduced in the House), 105th Cong., 1st sess., 1997.
43. Ibid. at § 1084 (a)(2) levies criminal penalties on
anyone who "knowingly uses a communications facility for
the transmission or receipt in interstate or foreign com-
merce of bets or wagers. . . ."
44. Ibid. at § 1084(c)(2).  Kyl's Internet Gambling
Prohibition Act of 1998, Amendment to S. 2260, contains
similar provisions, though they require interactive computer
services to terminate the accounts only of customers who
have violated the act (§ 1085(d)(2)(C)(i)) and in all
other instances directs courts to consider the technical
and economic burdens that the demands of enforcing the act
may impose on service providers.  See § 1085(d)(2)(C)(ii).
45. Sutin, p. 7.
46. See generally Barry M. Leiner et al., "A Brief History
of the Internet," <http://info.isoc.org/internet/history/
brief.html>; and Kevin Werbach, "Digital Tornado: The
Internet and Telecommunications Policy," Federal
Communications Commission, Office of Policy and Plans
Working Paper Series 29, March 1997, <http://www.fcc.gov/
Bureaus/OPP/working_papers/>, pp. 16-18.