WASHINGTON — The House has approved a bill banning Internet gambling, including a specific change to help protect Utah's ban on any form of gambling.

The bill passed 317-93 Tuesday and changes the Wire Act of 1961 — which bars gambling over wire communication — to include the Internet. Lawmakers want to stop the $12 billion online gaming industry, which is expected to jump to $24 billion by 2010. Most of the gaming companies are located overseas.

"Gambling, whatever form it takes, is dangerous, but Internet gambling is especially pernicious," said Rep. Chris Cannon, R-Utah. "Because gambling sites lack reliable age verification tools, children of any age can easily access the sites and begin gambling in their bedrooms."

Rep. Jim Matheson, D-Utah, and Rep. Rob Bishop, R-Utah, also voted in favor of the bill.

During a House committee vote in May, Cannon offered an amendment that specifically states nothing in the Internet gambling ban can pre-empt state laws that prohibit gambling. It was approved by voice vote, making it part of the bill the House approved Tuesday.

"After years of work, we have a bill that prohibits Internet gambling and protects Utah," Cannon said at the hearing.

Cannon had concerns that existing language in the bill would create a loophole allowing some betting in Utah, one of just two states — Hawaii is the other — that prohibit any form of gaming.

"I wouldn't let federal law allow that," Cannon said at the mark-up of the bill.

The bill bans Internet gambling. But another amendment offered by Cannon and other lawmakers clarified the language to say nothing in the bill affects the Interstate Horseracing Act. Betting on horses is governed by its own law and the Justice Department supported the amendment so the bill would not affect the relationship between the horse statute and other federal laws.

That could have allowed online bets to be placed from Utah, but Cannon's amendment on no pre-emption of state law bars the exception from allowing those bets to take place.

If the bill becomes law, it would not target U.S. citizens placing bets online but rather the "fly-by-night" overseas companies that operate poker, roulette, slot and other gambling sites, according to its authors.

It also directs the Treasury Department and Federal Reserve to create regulations that prevent financial transactions stemming from Internet gaming sites.

The Senate will need to approve the bill before it can become law.

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