Bill Targets Online Vice Payments

WASHINGTON — In a move that could dramatically impact some adult webmasters, lawmakers have taken a practical approach to curbing Internet vice, sending a bill to President Bush that would ban U.S. banks and credit card companies from processing transactions for online gambling sites. The bill, which many believe will be ineffective in terms of stopping Internet gambling, could have a drastic impact on payment processors.

Senate Majority Leader Bill Frist, R-Tenn., attached language to H.R. 4411, a port security bill that would prohibit credit card companies and other payment forms, such as electronic transfers, from being used to settle online wagers.

The bill also allows law enforcement officials to work with Internet service providers to block access to gambling sites.

Adult entertainment attorney Gregory Piccionelli told XBIZ the law also imposes liability on webmasters who do business with gambling sites.

"Sending traffic to gambling sites can be very problematic under this law," Piccionelli said. "Webmasters who deal in gambling and adult put themselves in multiple target zones."

Many of the companies engaged in online gambling are located in the U.K. and run out of small Caribbean nations. News of the bill triggered a selling spree for gambling stocks traded on the London exchange.

According to Frist, the decision to target the payment processors helps tackle the larger moral issue.

"Gambling is a serious addiction that undermines the family, dashes dreams and frays the fabric of society,” Frist said.

House Majority Leader John Boehner said the new law was a key advance for the Republicans' "American Values Agenda" ahead of the mid-term election.

"I am pleased that House Republicans continue to move substantive legislation upholding strong values that puts the interests of our families and children first,” he said.

Gibraltar-based sites PartyGaming and 888 Holdings said they would suspend their U.S. accounts for the time being.

Ken Weitzner, founder of Eye On Gambling, said the bill doesn’t seem enforceable because companies seeking U.S. business will simply find other ways to circumvent the law.

“This is a Republican initiative to please their religious base," Weitzner said. “It is very possible that a Democratic administration will tax it rather than prohibit it, which would be like leaving the Dark Ages for the 21st century.”

Other critics have said that the U.S. may run into trouble with the World Trade Organization over the bill. The international body ruled last year in favor of Antigua over U.S. restrictions to offshore gambling.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

25,000 Sign Petition to Legalize Pornography in Ukraine

An OnlyFans model’s petition to decriminalize pornography in Ukraine has amassed the 25,000 signatures required for official consideration by President Volodymyr Zelensky.

FSC Unpacks SCOTUS Age Verification Ruling in Webinar

The Free Speech Coalition conducted a public webinar Tuesday to help adult industry stakeholders understand the Supreme Court’s recent decision in FSC v. Paxton, and its potential implications.

UK Lawmaker Calls for Appointment of 'Porn Minister'

Baroness Gabrielle Bertin, the Conservative member of Parliament who recently convened a new anti-pornography task force, is calling for the appointment of a “minister for porn,” according to British news outlet The Guardian.

FSC Toasts Jeffrey Douglas for 30 Years of Service

n the very same evening when the adult industry was hit hard by the Supreme Court ruling supporting Texas’ controversial age verification law, HB 1181, members of the Free Speech Coalition board, staff and supporters gathered to celebrate Jeffrey Douglas’ 30 years as board chair — a fitting reflection of his reputation as an eternal optimist.

FSC: Age-Verification Laws Go Into Effect in South Dakota, Georgia, Wyoming on July 1

The Free Speech Coalition (FSC) has published a statement regarding new age verification laws set to go into effect tomorrow in South Dakota, Georgia, and Wyoming.

FSC Responds to Supreme Court Decision on Texas AV Law

The Free Speech Coalition (FSC) has released a statement responding to last week's Supreme Court decision on FSC v. Paxton, the Texas age verification law.

UPDATED: Supreme Court Rules Against Adult Industry in Pivotal Texas AV Case

The U.S. Supreme Court on Friday issued its decision in Free Speech Coalition v. Paxton, striking a blow against the online adult industry by ruling in support of Texas’ controversial age verification law, HB 1181.

North Carolina Passes Extreme Bill Targeting Adult Sites

The North Carolina state legislature this week ratified a bill that would impose new regulations that industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Supreme Court Ruling Due Friday in FSC v. Paxton AV Case

The U.S. Supreme Court will rule on Friday in Free Speech Coalition v. Paxton, the adult industry trade association's challenge to Texas’ controversial age verification law, HB 1181.

Ofcom: More Porn Providers Commit to Age Assurance Measures

A number of adult content providers operating in the U.K. have confirmed that they plan to introduce age checks in compliance with the Online Safety Act by the July 25 deadline, according to U.K. media regulator Ofcom.

Show More