British politician describes US anti-online gambling law as flawed

The outspoken British government culture secretary Tessa Jowell, speaking only days away from an international meeting of 32 nations to back a code of principles on internet gambling, was critical of American efforts to ban the passtime this week.

Describing the US law as flawed, Jowell said the US crackdown on online gambling is a "new prohibition" which is likely to fuel a rise in fraud and exploitation. Offshore sites could become the "modern equivalent of speakeasies", illegal bars which opened in 1920s America when alcohol was banned, she added, opining that regulating sites, as the UK is doing, works better than prohibition. .

Under UK government plans, the Gambling Commission is to vet sites, giving official approval to those with the best working practices. Operators will not be allowed to target children and must keep customers informed about how much money they have spent.

Key staff, such as managing directors and finance managers, will also be checked for links to organised crime.

Jowell said: "Broadly speaking we have three choices: you can prohibit, like the US; do nothing or regulate, like we have. I firmly believe we have chosen the path that will do the most to protect children and vulnerable people and keep out crime."

She added: "America should have learnt the lessons of prohibition. The Volstead Act [which brought in prohibition in 1919] was meant to stop alcohol from causing harm, but in practice it forced otherwise law-abiding customers into the hands of the bootleggers.

"If it goes wrong, there is a real danger that offshore sites based in poorly regulated countries will become the modern day equivalent of speakeasies, increasing the risk of exploitation and fraud."

The British politician went on to say that there was a danger of the US government popularising badly regulated offshore gambling sites. The US legislation, approved this month by President George W Bush, is expected to hit UK firms, as it closes off a large part of the global market.

Jowell will be hosting a much anticipated summit on online gambling next week, with politicians from 32 countries discussing how to achieve international regulation of Internet gambling to best effect.