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-
- Computer underground Digest Sun Mar 23, 1997 Volume 9 : Issue 23
- ISSN 1004-042X
-
- Editor: Jim Thomas (cudigest@sun.soci.niu.edu)
- News Editor: Gordon Meyer (gmeyer@sun.soci.niu.edu)
- Archivist: Brendan Kehoe
- Shadow Master: Stanton McCandlish
- Shadow-Archivists: Dan Carosone / Paul Southworth
- Ralph Sims / Jyrki Kuoppala
- Ian Dickinson
- Field Agent Extraordinaire: David Smith
- Cu Digest Homepage: http://www.soci.niu.edu/~cudigest
-
- CONTENTS, #9.23 (Sun, Mar 23, 1997)
-
- Subject: Jacking in from the "Man Behind the Curtain" port (fwd)
- Subject: "Software Blocking" Bill introduced in Texas
- Subject: Vietnam to Censor Net
- Subject: Bell Atlantic Calls for Coopertion against Fraud
- Subject: Wired News/Reuters: Bill tries to ban Internet gambling
- Subject: Internet Gambling Prohibition Act of 1997
- Subject: Cu Digest Header Info (unchanged since 13 Dec, 1996)
-
- CuD ADMINISTRATIVE, EDITORIAL, AND SUBSCRIPTION INFORMATION APPEARS IN
- THE CONCLUDING FILE AT THE END OF EACH ISSUE.
-
- ---------------------------------------------------------------------
-
- Date: Thu, 13 Mar 1997 08:44:05 EST
- From: Martin Kaminer <iguana@MIT.EDU>
- Subject: Jacking in from the "Man Behind the Curtain" port (fwd)
-
- Thought you might be interested in this.
-
- Martin Kaminer
- ---------
-
- Sent from: Brock N. Meeks <brock@well.com>
-
- CyberWire Dispatch // Copyright 1997 // March 1997
-
- Jacking in from the "Man Behind the Curtain" port:
-
- Here... March This
- by Lewis Koch
- CWD Special Correspondent
-
- Chicago --You better not hack, better not phreak -- The President's
- Commission on Critical Infrastructure Protection [http://www.pccip.gov]
- is coming to town.
-
- This behind closed doors Commission holds the key to America's most
- precious civil liberty chastity belt: Privacy. And now it's going on
- tour. That right, the Commission is coming to a town near you, a
- dog-and-pony road trip whose tour jackets are read: MADE in the NSA.
-
- The Commission's goal during the tour is to hear from the people, to
- collect ideas about how to protect the critical infrastructure from...
-
- >from... why the newest threat (ominous music) to our national well being
-
- now that the Sovs are gone, Saddam's waiting for a bullet and the Chicoms
- are turning capitalists -- (scary music swells) -- "cyber-terrorists"
- attacking our so-called "critical infrastructures" through devious
- computer hacking raids. Honest.
-
- And yet, even as members of the Commission smile politely and nod their
- graying heads, they are busy trying to figure out (read: Justify) just
- how to rewrite U.S. laws which would lift, or at least modify, the decades
- old ban that keeps our nation's top spooks from the National Security
- Agency from gathering intelligence on you and me.
-
- Which is not to say these kats don't have an ironic sense of humor. One
- of their first public debuts will be in San Francisco during next week's
- Computers, Freedom and Privacy conference. Of course, if you can make it
- to CFP, you might try the Los Angeles, California, Public Works Hearing
- Room, City Hall, room 350, third floor, starting at 10 a.m. and if you
- can't grok with the freaks in L.A. or the cypherpunks in San Francisco,
- perhaps you can make it to Commission's other scheduled stops in Atlanta,
- Houston, St. Louis or Boston. (Call now, operators are standing by,
- 202-828-8869, ask for Liz.)
-
- Between all his strenuous fund raising efforts, President Clinton last
- July found the time to form a this Commission to inquire into the question
- of whether this nation has protected its precious physical and cyber
- innards, namely electric power, gas and oil, telecommunications, banking
- and finance, transportation, water supply, emergency services, and of
- course, continuity of government services, and...the Internet.
-
- By this time the Government has caught on to the fact that the Internet
- is no longer a fun toy for academics and young people but rather but
- serious business for people who bustle around or sleep over at the White
- House. There is money to be made on the Net, power to be wielded.
-
- There are also some big bucks to be spent, billions maybe, on what will
- almost certainly be efforts to "make things safe" from cyberterrorism.
-
- The most important job this Commission, however, will be to direct
- attention away from the real issues: who was/is responsible for developing
- weak, vulnerable infrastructures in this country in the first place. (Pay
- no attention to the men behind the curtain, the men who built the
- crumbling infrastructures of Internet Central in the first place.)
-
- Second, while it would be foolish to deny that problems exists with
- thieves who use computers and cyberspace, where some child pornography
- and a whole hell of a lot of money laundering takes place, cyberspace is
- merely a reflection of society, the good and the bad and a lot in between.
-
- What then, do "cyber threats "actually look like? Who might carry them
- out. How? Where? And who will lead the effort to gather, collate, fold
- and staple all this valuable information? A recognized Internet expert?
- Someone with extensive experience in networks and cross-platform
- computing? Nope... not for Bill Clinton. Just wouldn't do.
-
- No, sir, what we need to combat terrorism is, well, a goddamn, real life
- combat veteran, by gwad! Enter Robert T. March, chairman of this
- Infrastructure Protection Task Force. You can call him "Bob" or simply
- "The General" will do because, well, that's what he did most of his life
- and besides, it has a real nice ring to it.
-
- The executive order creating this Commission states that the chairman be
- "from outside the Federal government," which Marsh is, technically, since
- he retired from the military in 1989. He still collects his "inside" the
- Federal government military retirement pay though. Question is, do you
- want someone who might played a part creating the mess, now deciding how
- to fix it?
-
- The background information on General Marsh is kinda skimpy, at least for
- someone who spent the vast majority of his adult life, rising to the rank
- of General. He's 73, a West Point graduate, a resident Alexandria, a
- tony Virginia suburb a stone's throw from Washington, D.C.
-
- "His last assignment was serving as the commander of the Air Force
- Systems Command, where he directed the research, development, test and
- acquisition of aerospace systems for the Air Force," reads his brief bio
- on the Web page. So we can at least legitimately guess that he was heavy
- into some kinds of high tech R&D and Procurement stuff, pushing paper and
- awarding big time contracts.
-
- It seems that following his retirement, Marsh marched right back into
- research, development, test and acquisition, only, well, on the other
- side.
-
- "He served as the first chairman of Thiokol Corp [http://www.thiokol.com/],"
- his bio reads, "as it transitioned from Morton-Thiokol in 1989 to separate
- company status."
-
- (Remember the Challenger Disaster in 1986?
- [http://www.fas.org/spp/51L.html] Can you spell O-rings? If you click on
- the company's Web page history section,
- [http://www.thiokol.com/History/History.htm#HistoryOfCompany] this seems
- to be a non-event. Could there have been two Morton-Thiokol companies?)
-
- Marsh is a very active senior, serving on the board and as a stockholder
- active in a surprising number of other high tech ventures, some or all of
- which could conceivably wind up providing all kinds of high priced of
- technical goodies to combat bad guys bent on physical and cyber
- destruction of our dear, up-until-now unprotected infrastructures.
-
- And according to public information office of the Commission, Marsh
- intends on keeping his corporate goodies "but at a reduced compensation"
- because he was merely "designated" by the President -- which in White
- House jargon means...whatever the hell one wants it to mean -- as long as
- you don't have to give up the stock and the options and the director's
- fees (Being "designated" means never having to say I'm sorry.).
-
- Marsh also has strong ties to CAE Electronics,
- [http://www.cae.ca/cae_electronics_inc/cae_electronics_inc.html] a new
- U.S. company which markets high tech stuff. CAE has a Canadian papa,
- which, among the high tech goodies it markets are "Air Traffic Management
- Systems" and "Engineering and Software Support for Weapons Systems." So,
- having someone on the Director's payroll in the States, someone with 35
- years of experience in the United States Air Force, makes good, er,
- business sense.
-
- Marsh also owns 40,000 shares and makes $8,000.00 a year plus expenses
- for his directorship in Teknowledge,
- [http://www.teknowledge.com/company/company.html] a Palo Alto high tech
- firm parked behind a fence and leafy trees. Teknowledge is very
- interested in communications and the Department of Defense. Here is how
- the company describes some of what it does:
-
- "Since the DoD and many commercial businesses plan to conduct large-scale
- operations over international computer networks similar to the Internet,
- much of the Teknowledge's current and future project focus is in providing
- network associate systems to make access to knowledge easier, and network
- accelerators to make knowledge access over networks faster and more cost
- effective."
-
- So, we're taking marketing here, not rocket science; it's easy to see
- how Teknowledge might be a "good fit" for any computer infrastructure
- "hardening" contracts. Cyberwarriors already have a name for it: "Minimum
- Essential Information Infrastructure (MEII) also known as "emergency lanes
- on the information highway."
-
- Marsh is also a director of Comverse Government Systems
- Corp.[http://www.cis.comverse.com/]. Among the things that Comverse makes
- are digital monitoring systems for law enforcement and intelligence
- agencies. Oh? Yes. Digital wiretapping, monitoring, as
- in...why...yes...of course. The perfect party gift for the FBI in search
- of the hackers who put on those nasty things on the Justice Department
- Web site.
-
- Marsh also is a trustee of MITRE Corp, which, we see
- [http://www.fast.org/irp/contract/m.htm], is into air defense and other
- command, control, communications, and intelligence systems used by
- department of Defense clients. The company's ties to the defense
- intelligence community go back to the late 1950, with project code names
- such as HAVE STARE and STEEL TRAP.
-
- And when the General takes his World Tour back home D.C. will we ever see
- it's findings? The Commission isn't bound by the Freedom of Information
- Act, so we don't have those thumb screws to turn. However, the Commission
- is governed by the Federal Advisory Committee Act, which, in part, is
- there to "to open to public scrutiny the manner in which government
- agencies obtain advise from private individuals." Of course, this
- situation being one of vital national security interest, cyber-terrorists
- and all tha t, don't expect a flood of documents and sunshine from the
- General.
-
- Apart from the General, there's an interesting internal conflict on the
- Commission. You see, though it's headed by a "civilian," it's run by the
- FBI, which doesn't get along with the CIA and neither get along with all
- that well with the NSA. It's a schizophrenic role for the FBI, to be
- sure. Actually, there are people in the FBI who at least know the right
- questions to ask, that's a start. The problem is whether their questions
- can be heard over the din of furious, clueless answers shouted out by Dir.
- Louis Freeh, James Kallestrom and others in their own agency.
-
- So, come on out and give the General a few choice thoughts... and don't
- forget to call to reserve your spot in line... government operators are
- standing by, ahem, from the hours of 8 a.m. to 5 p.m. EST only, of course.
-
- But hurry, this country is not sold in stores.
-
- ------------------------------
-
- Date: Mon, 17 Mar 1997 19:46:28 EST
- From: Martin Kaminer <iguana@MIT.EDU>
- Subject: "Software Blocking" Bill introduced in Texas
-
- Sent from: Joe Corcoran <joe@hosaka.SmallWorks.COM>
-
- The following is a bill being introducted to the Texas State Legislature.
- It may be of interest to you.
- - -----------------------------------------
-
- Introduce version- Bill Text H.B. No.1300
-
- By Corte
- 75R4899 SRC-D
-
-
- A BILL TO BE ENTITLED AN ACT
-
-
- Relating to the provision of certain software to persons who access the
- Internet; providing penalties.
- BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
- SECTION 1. Chapter 35, Business & Commerce Code, is amended by
- adding Subchapter I to read as follows:
- SUBCHAPTER I. PROVISION OF SOFTWARE TO BLOCK OR SCREEN INTERNET
- MATERIAL
- Sec. 35.101 DEFINTIONS. In this subchapter:
- (1) "Freeware" means software that is distributed to a person free of
- charge regardless of whether use of the software is subject to certain
- restrictions.
- (2) "Internet" means the largest nonproprietary nonprofit cooperative
- public computer network, popularly known as the Internet. (3) "Interactive
- computer service" means any information service or system that provides or
- enables computer access by multiple users to the Internet.
- (4) "Shareware" means copyrighted software in which the copyright owner
- sets certain conditions for its use and distribution, including requiring
- payment to the copyright owner after a person who has secured a copy of the
- software decides to use the software, regardless of whether the payment is
- for additional support or functionality for the software.
- Sec. 35.102 SOFTWARE THAT RESTRICTS ACCESS TO CERTAIN MATERIAL ON
- INTERNET.
- (a) A person who provides an interactive computer service to another person
- for a fee shall provide free of charge to each subscriber of the service in
- this state a fully functional shareware, freeware, or demonstration version
- of software that enables the subscriber to automatically block or screen
- material on the Internet and that provides cost-free usage for at least 30
- days.
- (b) A provider is considered to be in compliance with this section if the
- provider places, on the provider's first page of text information accessible
- to a subscriber, a link to the software descried by Subsection (a).
- (c) This section does not apply to an institution of higher education, as
- that term is defined by Section 61.003, Education Code that provides
- interactive computer Service.
- Sec. 35.103 CIVIL PENALTY.
- (a) A person who violates Section35.102 is liable to the state for a civil
- penalty not to exceed $10,000 for each violation.
- (b) The attorney general may institute a suit to recover the civil penalty.
- Sec. 35.104 CRIMINAL PENALTY
- (a) A person commits an offense if the person violates Section 35.102.
- (b) An offense under this section is a Class C misdemeanor.
- SECTION 2. This Act takes effect September 1,1997, except that
- a civil or criminal penalty for a violation of Section 35.102, Business &
- Commerce Code, as added by this Act, may be imposed only for a violation
- that occurs on or after January 1, 1998.
- SECTION 3. The importance of this legislation and the crowded
- condition of the calendars in both house create an emergency and an
- imperative public necessity that the constitutional rule requiring bills to
- be read on three several days in each house be suspended, and this rule is
- hereby suspended.
-
- - -----------------------------------------------------------------
- - -----------------------------------------------------------------
-
- The Internet Tax Freedom Act
- Introduced in the Senate March 13, 1997
-
- By Senator Wyden (for himself and Senator Kerry):
-
- S. 442. A bill to establish a national policy against State
- and local government interference with interstate commerce on
- the Internet or interactive computer services, and to
- exercise Congressional jurisdiction over interstate commerce
- by establishing a moratorium on the imposition of exactions
- that would interfere with the free flow of commerce via the
- Internet, and for other purposes; to the Committee on
- Commerce, Science, and Transportation.
-
- See bill, Wyden's statements and section-by-section analysis at:
-
- http://jya.com/s442.htm
-
- ------------------------------
-
- Date: Wed, 12 Mar 1997 08:13:38 -0800 (PST)
- From: Declan McCullagh <declan@well.com>
- Subject: Vietnam to Censor Net
-
- Source - fight-censorship@vorlon.mit.edu
-
- [The China model. --Declan]
-
- ---------- Forwarded message ----------
-
- 03/11/97 - 01:47 PM ET - Click reload often for latest version
- Via USA Today Web Site
-
- Vietnam to censor the Net
-
- HANOI, Vietnam - All information coming into Vietnam through the Internet
- will be censored and the government announced Tuesday it will control who
- has access to online services.
-
- It also will limit the gates through which Internet servers in Vietnam
- are linked to the world's largest information network.
-
- The new regulations, to take effect next week, were widely publicized in
- state-controlled media.
-
- The controls were issued in a decree by Prime Minister Vo Van Kiet, who
- said information servers must be based in Vietnam. This will ensure that
- information entering and leaving Vietnam goes through a
- government-filtered gateway, the Communist Party newspaper, The People,
- reported.
-
- The government has been looking for efficient ways to allow Internet
- service, while restricting its contents.
-
- By The Associated Press
-
- ------------------------------
-
- Date: Tue, 4 Mar 1997 00:47:05 -0500 (EST)
- From: "noah@enabled.com" <noah@enabled.com>
- Subject: Bell Atlantic Calls for Coopertion against Fraud
-
- -Noah
-
- ---------- Forwarded message ----------
- Date--Mon, 3 Mar 1997 16:43:23 -0500
- From--Bell Atlantic <pressrelease@ba.com>
-
- NEWS RELEASE *********************************************************
- ******************************************************** BELL ATLANTIC
-
- FOR IMMEDIATE RELEASE Contact:
- March 3, 1997 Paul Miller
- 804-772-1460
- iller@ba.com
-
-
- BELL ATLANTIC CALLS FOR INDUSTRY COOPERATION
- TO 'OUTFOX' $4-BILLION-A-YEAR PHONE FRAUD
-
-
- ARLINGTON, Va.- With telephone fraud in the United States costing $3.7
- billion a year and rising at double-digit rates, Bell Atlantic today
- called on industry rivals nationwide to band together to develop ways
- to stop the menace. In an unprecedented call for cooperation, the
- company urged all telecommunications carriers to join the Alliance to
- Outfox Phone Fraud.
-
- Created three years ago, the alliance is a broad-based international
- group of telecommunications companies and related businesses whose
- goal is to create consumer awareness about telephone fraud and its
- prevention. The animated character Freddie the Phone Fraud Fox(r)
- serves as the official mascot for the public awareness campaign.
-
- In addition to Bell Atlantic, alliance members include The American
- Public Communications Council, Bellcore, Communications Fraud Control
- Association, Hewlett-Packard, Illinois Consolidated Telephone Co.,
- Intelligent Switched Systems-Canada, NYNEX, Pacific Bell, Park Region
- Mutual Telephone Co., Pennsylvania Telephone Association, Public
- Service Telephone Co. and Southwestern Bell.
-
- "The alliance is a key way for the growing number of carriers in the
- nation to pool their resources and share information about phone fraud
- occurrence and tips on prevention," said Mary Chacanias, director of
- fraud prevention in Bell Atlantic's Carrier Services organization.
-
- The Telecommunications Reform Act of 1996 has brought hundreds of new
- carriers into the marketplace, multiplying the opportunities for
- criminals to commit phone fraud. The fast growth of the wireless
- industry is one factor accounting for the rise in fraud in recent
- years. Also, the advent of portable computing has made it easier for
- ingenious criminals to commit phone fraud with less risk.
-
- Phone fraud has gone beyond "tumbling," or guessing at, wireless phone
- numbers to cloning of wireless phones. The latest and fastest-growing
- type of fraud is subscription fraud, which affects both wireline and
- wireless carriers.. Such fraud can occur when a user provides the
- carrier with a false address, identification, or credit rating and then
- makes long distance phone calls on that account.
-
- The most effective perpetrators of phone fraud stay one step ahead of
- the law by placing their calls quickly before telephone operators and
- law enforcement agencies can catch them.
-
- "All telecommunications companies must be faster and more skilled at
- chasing the crooks who know too well how to take advantage of our
- networks," Chacanias said. "An aggressive, well-organized anti-fraud
- program can stop the theft of millions of dollars in phone service.
-
- "With the cooperation of all the carriers, we can put an enormous dent
- in phone fraud," she said. "In the short time our alliance has been
- functioning, we've been able to make a difference in this problem."
-
- For more information about the alliance or to join, those interested
- should call 800-9-OUTFOX. The alliance can also be reached at
- www.gnat.net/outfox on the worldwide web.
-
- Bell Atlantic Corp. (NYSE: BEL) is at the forefront of the new
- communications, entertainment and information industry. In the
- mid-Atlantic region, the company is the premier provider of local
- telecommunications and advanced services. Globally, it is one of the
- largest investors in the high-growth wireless communication
- marketplace. Bell Atlantic also owns a substantial interest in
- Telecom Corporation of New Zealand and is actively developing
- high-growth national and international business opportunities in all
- phases of the industry.
-
- ####
-
-
- INTERNET USERS: Bell Atlantic news releases, executive speeches, news
- media contacts and other useful information are available at Bell
- Atlantic's News Center on the World Wide Web (http://www.ba.com). To
- receive news releases by e-mail, visit the News Center and register
- for personalized automatic delivery of Bell Atlantic news releases.
-
- ------------------------------
-
- Date: Fri, 21 Mar 1997 07:02:45 -0800 (PST)
- From: Declan McCullagh <declan@well.com>
- Subject: Wired News/Reuters: Bill tries to ban Internet gambling
-
- Source - fight-censorship@vorlon.mit.edu
-
- [I haven't read the text of the bill yet -- I'm having it faxed to me now
- -- but I wonder whether it would even work. That is, I'm curious whether
- it affects companies within the *jurisdiction* of the FCC, or companies
- that are actively being *regulated* by the FCC. Beginning with Computer
- II, the FCC has defined "enhanced" service providers as firms *not*
- providing standard voice offerings, a category that includes Internet
- providers and is not subject to regulation under Title II of the
- Communications Act. --Declan]
-
- **************
-
- Reuters // U.S. Bill To Ban Internet Gambling Introduced
-
- WASHINGTON - A bill to ban all forms of gambling on the Internet has
- been introduced in the U.S. Senate.
-
- "Given the tremendous potential for abuse, addiction and access by
- minors, online gambling should be prohibited," Sen. Jon Kyl, an
- Arizona Republican, said. He was joined by two other Republicans and
- three Democrats in offering the bill.
-
- Currently, only computer gambling on sports events is prohibited. The
- legislation would extend criminal penalties to companies who offer all
- types of computer gambling.
-
- Communications companies regulated by the U.S. Federal Communications
- Commission would be required to discontinue services to any companies
- they carry that offer gambling.
-
- Kyl said the bill also eliminates ambiguity about the definition of
- bets and wagers to make any form of online betting illegal.
-
- The bill was introduced on the same day as the U.S. Supreme Court
- heard arguments about a 1996 law banning transmission of sexually
- explicit material on the Internet to anyone younger than 18.
-
- The Clinton administration argued that the law should be upheld to
- protect young children. Opponents said it violated free-speech rights
- of adult Internet users and should be found unconstitutional. A
- decision in the case is due by July.
-
- **************
-
- Wired News
- ACLU: Gambling Bill Would Turn ISPs Into Cops
- by Ashley Craddock
-
- 6:03pm 20.Mar.97.PST A new bill that would outlaw Internet gambling
- in the United States was attacked Thursday for a provision that the
- American Civil Liberties Union says would force Internet service
- providers to act as online cops.
-
- Online gambling, which defies traditional state jurisdictions, has
- caught the Department of Justice with its pants down. So far, the
- department has been unable to establish any adequate plan to police
- cyberwagers. While the Interstate Wire Act of 1961 prohibits the use
- of phone lines to place bets across state lines, the question of
- whether the act applies to online gambling remains unsettled. The
- issue is further complicated by the fact that many online casinos have
- moved their operations offshore.
-
- The bill introduced Thursday, the Internet Gambling Protection Act by
- Senator Jon Kyl (R-Arizona), tries to give teeth to government
- prohibitions against online wagers. Besides criminalizing all gambling
- and specifying that virtual casinos cannot evade gambling laws by
- offering "prizes" rather than cash, the bill holds ISPs liable for
- providing access to gambling sites once state or local law enforcement
- agencies have notified the ISPs that such activities are taking place.
-
- Prosecuting crime on the Internet "is extremely difficult," says
- Vincent Sollitto, a spokesman for Kyl. "This is one mechanism to help
- law enforcement keep a clamp on some of the offshore activity that's
- making it impossible to restrict online bets."
-
- Although only a handful of online casinos currently exist, the
- phenomenon has been generating a good deal of heat and light in the
- form of press coverage and concern from politicians who fear that home
- gambling will eat away at America's moral fiber. "Gambling erodes
- values of hard work, sacrifice, and personality," Kyl said as he
- introduced his anti-gambling bill.
-
- But however small the current universe of online casinos, proprietors
- of the gaming industry, who rake in US$550 billion-a-year, are eagerly
- looking to plumb the Internet's financial possibilities, which at
- least one analyst has predicted could amount to $10 billion a year by
- 2000.
-
- But critics charge that making service providers responsible for
- providing access to Web sites places them in the position of policing
- content rather than simply acting as carriers.
-
- [...]
-
- ------------------------------
-
- Date: Fri, 21 Mar 1997 11:57:50 -0400
- From: Michael Sims <jellicle@inch.com>
- Subject: Internet Gambling Prohibition Act of 1997
-
- Source - fight-censorship@vorlon.mit.edu
-
- [Full text of the bill is not yet available on-line. Perhaps
- Declan's fax machine is faster than my mouse, though. In any case,
- here's a few words from our sponsors. From other commentary on the
- bill, it appears that the bill would place all ISPs under the
- regulatory ability of the FCC. Hooray.]
-
-
-
- By Mr. KYL (for himself, Mrs. Feinstein, Mr. Graham, Mr. Hutchinson,
- Mr. Grassley, and Mr. Johnson):
-
- S. 474. A bill to amend sections 1081 and 1084 of title 18, United
- States Code; to the Committee on the Judiciary.
-
- THE INTERNET GAMBLING PROHIBITION ACT OF 1997
-
- Mr. KYL. Mr. President, I rise to introduce the Internet Gambling
- Prohibition Act of 1997. It will outlaw gambling on the Internet. I
- believe it will protect children from logging on to the Internet and
- being exposed to activities that are normally prohibited to them. And
- for those people with a gambling problem, my bill will make it harder
- to gamble away the family paycheck.
-
- Gambling erodes values of hard work, sacrifice, and personal
- responsibility. Although the social costs of gambling are difficult to
- quantify, research indicates they are potentially staggering. Gambling
- is a growing industry in the United States, with revenues approaching
- $550 billion last year--three times the revenues of General Motors
- Corp. In 1993, more Americans visited casinos than attended a major
- league baseball game.
-
- The problem can only grow worse with online casinos. Now it is no
- longer necessary to go to a casino or store where lottery tickets are
- sold. Anyone with a computer and a modem will have access to a casino:
- Internet users can access hundreds of sites for blackjack, craps,
- roulette, and sports betting. Gambling addiction is already on the
- rise. Online gambling will only increase the problem.
-
- Why is this bill necessary? It dispels any ambiguity by making clear
- that all betting, including sports betting, is illegal. Currently,
- nonsports betting is interpreted as legal. The bill also clarifies the
- definition of bets and wagers. This ensures that those who are
- gambling cannot circumvent the law. For example, virtual gaming
- businesses have been known to offer prizes instead of money, in an
- attempt to evade the law.
-
- Additionally, my bill clarifies that Internet access providers are
- covered by the law. As the National Association of Attorneys General
- [NAAG] task force on Internet Gambling reported, `this is currently
- the most important section to State and local law enforcement
- agencies, because it provides a civil enforcement mechanism.'
- FCC-regulated carriers notified by any State or local law enforcement
- agency of the illegal nature of a site are required to discontinue
- services to the malfeasor. NAAG believes that this can be a very
- effective deterrent. The bill includes interactive computer-service
- providers among those entities required to discontinue such service
- upon notice. Federal, State, and local law enforcement entities are
- explicitly authorized to seek prospective injunctive relief against
- continued use of a communications facility for purposes of gambling .
-
- The Internet Gambling Prohibition Act makes explicit the intent of
- Congress to create extraterritorial jurisdiction regarding Internet
- gambling activities. Too often, illicit operators of virtual casinos
- set up shop in friendly jurisdictions beyond the direct application of
- U.S. law. It will also require the DOJ to report on the difficulties
- associated with enforcing the statute. Finally, it places some burden
- on the bettor.
-
- The Internet has great potential to promote both educational
- opportunities and business expansion in this country. At the same
- time, the Internet is fast becoming a place where inappropriate
- activities such as gambling , pornography, and consumer fraud thrive.
- Recently, many businesses have welcomed law enforcement's involvement
- in cracking down on consumer fraud. We must find a constitutional way
- to deal with the other problems raised by this revolution in
- communications. I believe that it is possible to impose some
- conditions, as we have in other areas, without violating free speech
- rights.
-
- ------------------------------
-
- Date: Thu, 15 Dec 1996 22:51:01 CST
- From: CuD Moderators <cudigest@sun.soci.niu.edu>
- Subject: Cu Digest Header Info (unchanged since 13 Dec, 1996)
-
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- ------------------------------
-
- End of Computer Underground Digest #9.23
- ************************************
-
-
-