Online transactions in the $12 billion gambling industry were stifled when President Bush signed the Internet Gambling Prohibition and Enforcement Act on Oct. 13.

The Act makes it illegal to gamble with money transactions in certain online games. Card games such as poker and the like are banned, yet horse racing, fantasy sports leagues and state lotteries are not.

“I think that the effort to regulate online gambling is an attempt to protect children,” said Chris Henrichsen a BYU-Idaho political science professor. “Online gambling venues are seeking to bring more people into the Web of addiction. Children seem particularly more vulnerable if there is easy access.”

Along with online gambling being a threat to children, it is also a way that criminals and terrorists can harbor means of criminal activity.

“Illegal gambling sites ... offer fronts to criminals for money laundering, drug trafficking and terrorist financing,” said Speaker of the House J. Dennis Hastert in a statement to the House made on July 11 concerning the bill.

This act bans U.S. financial institutions such as banks and credit card companies from processing any deposits or withdrawals with Internet gambling sites involved in “unlawful” online gambling. In some cases, it will force Internet service providers to block access to offshore gambling sites.

The penalty for violating and processing these money transactions would be a fine and up to five years imprisonment.

“Internet-based companies must abide by U.S. regulations that protect our children, citizens and the integrity of American business. The Internet Gambling Prohibition and Enforcement Act will do just that. It seeks to protect our children from gambling sites at home, keep our hard-earned money in the bank and put the criminals that seek to take advantage of our family earnings in jail,” Hastert said.