Spencer Bachus Defends The UIGEA 

In a written statement published in the U.S. News and World Report, Spencer Bachus came out very strongly in support of the ban on online gambling. Bachus is a Republican from Alabama and ranking member of the House Financial Services Committee. 

Bachus opened his arguments by stating, “Online players can gamble 24 hours a day, seven days a week from home; children may play without sufficient age verification; and betting with a credit card can undercut a player’s perception of the value of cash, leading to addiction, bankruptcy, and crime.” He went on to describe how the Wire Act of 1961 had failed to prevent online gambling because the providers were offshore entities. The UIGEA provided a tool to prevent online gambling by making it illegal for financial institutions in the United States to transfer funds to online gambling operators. Bachus cited the Annenberg Public Policy Center survey which stated that post the UIGEA online gambling among college youth has fallen from 5.8% to 1.5%. 

Bachus provided further support for his views by referring to the testimony of Greg Hogan whose son ran up massive debts in online gambling and then tried to rob a bank to pay them off. The son is now in jail. Bachus also pointed out that a large number of professional sports organizations are against online gambling because they fear that the integrity of the sports is being violated. He also referred to the statement made by the Attorney General of the United States in his Senate confirmation hearing, when the latter said that he would enforce the UIGEA vigorously. 

Bachus concluded by alleging that the regulatory mechanisms proposed are inadequate to control online gambling and that online gambling would also lead to larger national problems like money-laundering and drug trafficking