WASHINGTON — A federal law requiring online gambling companies to obtain gambling licenses has prompted a wave of online gaming companies to seek help from regulators.
But that may not be enough.
A House panel is now considering a bill to prevent online gambling businesses from using the Internet to raise money for themselves or their affiliates.
The proposed law, which would require that online gambling websites comply with a variety of regulations, could come as a surprise to some regulators who have long believed online gambling was a safe alternative to the old-fashioned casinos that existed in many states.
But the issue is likely to attract attention from lawmakers, who will be able to make amendments.
Lawmakers are considering an amendment that would require all online gambling sites that receive money from gambling operators to register with the Justice Department.
That would mean that any money a company makes from online gambling will have to be reported to the state in a form the Justice department can use to prosecute violators.
The money must be distributed in a way that ensures the money is distributed to a state-controlled entity that is in the best position to enforce its laws.
The Justice Department could also require online gambling operators who receive money through gambling websites to register under the federal Wiretap Act, which requires that financial transactions are monitored.
The bill, sponsored by Virginia Republican Rep. Bob Goodlatte, is a response to the rise of online gambling, a trend that has been in full swing in recent years.
It also reflects a desire by some regulators to get ahead of emerging threats, including threats from terrorists and criminals, to online gambling.
Online gambling companies are now worth about $40 billion, according to research firm Technomic.
Last year, online gambling generated $11 billion in revenue.
The House Judiciary Committee is scheduled to consider the bill next week.
If it passes, it would go to the full House, which will likely send it to President Donald Trump’s desk for his signature.
Law enforcement officials have said that while the threats from terrorist groups have made online gambling a less attractive option than casinos, online gaming remains the most profitable option.