2002 Ron Paul 92:1
Mr. PAUL. Mr. Speaker, H.R. 556 limits the
ability of individual citizens to use bank instruments,
including credit cards or checks, to finance
Internet gambling. This legislation
should be rejected by Congress since the federal
government has no constitutional authority
to ban or even discourage any form of gambling.
2002 Ron Paul 92:2
In addition to being unconstitutional, H.R.
556 is likely to prove ineffective at ending
Internet gambling. Instead, this bill will ensure
that gambling is controlled by organized crime.
History, from the failed experiment of prohibition
to today’s futile “war on drugs,” shows
that the government cannot eliminate demand
for something like Internet gambling simply by
passing a law. Instead, H.R. 556 will force
those who wish to gamble over the Internet to
patronize suppliers willing to flaunt the ban. In
many cases, providers of services banned by
the government will be members of criminal
organizations. Even if organized crime does
not operate Internet gambling enterprises their
competitors are likely to be controlled by organized
crime. After all, since the owners and
patrons of Internet gambling cannot rely on
the police and courts to enforce contracts and
resolve other disputes, they will be forced to
rely on members of organized crime to perform
those functions. Thus, the profits of Internet
gambling will flow into organized crime.
Furthermore, outlawing an activity will raise
the price vendors are able to charge consumers,
thus increasing the profits flowing to
organized crime from Internet gambling. It is
bitterly ironic that a bill masquerading as an
attack on crime will actually increase organized
crime’s ability to control and profit from
Internet gambling.
2002 Ron Paul 92:3
In conclusion, Mr. Speaker, H.R. 556 violates
the constitutional limits on federal power.
Furthermore, laws such as H.R. 556 are ineffective
in eliminating the demand for vices
such as Internet gambling; instead, they ensure
that these enterprises will be controlled
by organized crime. Therefore I urge my colleagues
to reject H.R. 556, the Internet Gambling
Prohibition Act.
