A New State Joins an Old Club

22 February 2000
Another state is drafting a Net betting ban. Tennessee has bills before both the state Senate and House that would make it illegal to either gamble on the Internet or be engaged in the operation of an Internet gambling business.

Those who wager on the Internet would be charged with a misdemeanor, while it would be a felony to "design, develop, manage, supervise, produce, establish, maintain or operate an Internet site that permits gambling over the Internet." The felony carries hefty fines of up to $20,000 for each charge.

For now, both versions are temporarily on hold. The Senate version is scheduled for the Judiciary Committee on February 29, while the House version has been deferred to the Judiciary on March 1.

Neither bill is believed to include any exemptions, not even for the state lottery.

This is at least the second Net betting bill introduced in state legislature in the past month. Last week, IGN reported that a similar bill in South Dakota proposes prohibition in that state.

Bill Summary for HB2151/SB2287:

The bill would create the offense of gambling by computer, as follows: (1) It would be a Class B misdemeanor to gamble by means of the Internet; and (2) It would be a Class E felony to design, develop, manage, supervise, produce, establish, maintain or operate an Internet site that permits gambling over the Internet. The fine for each violation of this felony would not exceed $20,000. This bill specifies that it would not prohibit, limit, or otherwise restrict the purchase, sale, exchange, or other transaction related to stocks, commodities and other similar instruments or transactions occurring on a stock or commodities exchange, brokerage house or other similar entity Similarly, this bill specifies that the provision of the Internet, on-line access and other communication-related services by telephone companies, Internet service providers, software developers, licensors or other parties providing such services in the normal course of business would not be considered in violation of this bill UNLESS such entity's primary purpose is to promote gambling by computer.