The U.S. House of Representatives recently passed a Bill geared at making online gambling illegal. The Bill now moves to the Senate for further debate, but opponents are already calling for possible industry regulations, such as licensing and tax withholdings on winnings.

To help control the unregulated $12 billion online gambling industry, the House has passed a bill that would forbid online gambling with credit cards and attempt to block access to gambling websites by working with Internet providers.

Senate Majority Leader Bill Frist promises to file a similar bill by year’s end.

Gambling, already comfortably ensconced amid the bright lights of Las Vegas strip, has moved closer to your home - that is, on the Internet. And with it may come new legislation. The bill’s good intentions, however, are at odds with reality.

Congress’ alarm over online gambling is understandable. Cyber-gambling has been proven to increase gambling addiction. That may be because there is no tangible “currency”, such as chips like in a real casino.

Another concern is the ease with which identity fraud can occur. Compared to real casinos, identity verification is minimal, even minors could gamble in cyber-casinos.

Although regulations are necessary and well-intentioned, they may be ineffective in the long run. Prohibiting online gambling will hardly eliminate it and drive the provblems further underground.

Many opponents of the Bill believe Congress should consider a licensing program and taxing online winnings. Licensing at least could put a damper on fraud and ensure a modicum of fairness. In addition, taxing online wagers could slow gambling frequency and provide additional funds in terms of tax revenues.

November 19, 2006