Staying on top of interactive gambling bills as they move through the United States' federal and state legislatures no longer entails hours of research, thanks to this biweekly update on U.S. state and federal legislation. The hot news this week on the U.S. law front comes from Nevada, where the state has passed legislation to permit online casinos to operate from within its borders, and from Oregon, where prohibition is now a signature away from being reality.
| NEVADA |
AB 466 |
| Bill Summary |
AB 466 permits interactive gambling sites to operate from Nevada. |
| Bill Status |
Passed on June 4, awaiting signature by Nevada Gov. Kenny Guinn. |
| Latest Action |
The original bill, AB 296, was eventually incorporated into a companion bill, AB 578. At first, the bill steamrolled its way through both houses of the Nevada legislature, yet failed at the final step--by all accounts, suffering from a political tiff between the two legislature houses--while awaiting a vote on the Senate floor. The legislation, however, was brought to back life under a little-known legislative move, whereupon it was piggybacked unto AB 466, a bill that creates a uniform, statewide system for issuing work cards to gambling employees. By all accounts, Gov. Guinn is expected to sign the legislation within 10 days of its passage. The next step will be a series of hearings by the Nevada Gaming Board and the Gaming Control Board in an effort to determine the appropriate regulatory framework for the operation of Internet gambling sites. |
| Outlook |
Internet gambling remains a couple years from becoming a reality in Nevada. There has been no determination whether the federal government could prevent a state or territorial government from offering interactive gambling services. In addition, no definitive decision has been made regarding whether the Wire Wager Act prohibits games of chance in addition to sports wagering activities. The eventual success of AB 466 is riding on the results of the Gaming Board's efforts in researching these topics.
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| OREGON |
SB 755 |
| Bill Summary |
Prohibits Internet gambling. |
| Bill Status |
On June 6, House amendments to the bill were accepted by the Senate, which repassed 755B. The bill is now waiting for Governor John Kitzhaber's signature. |
| Latest Action | Amended so that racetrack hubs can offer interactive betting services via the Internet as part of a closed loop system. Has passed both houses and is slated to receive Gov. Kitzhaber's signature within 30 days. Once signed by the governor, 755B will be enacted later this summer. |
| Outlook | Rumor has it that Gov. Kitzhaber may sign the bill sooner than within the 30 days originally predicted. Oregon would then join forces with the few other states that currently have enacted prohibitionary legislation against Internet gambling.
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| CALIFORNIA |
AB 1229 |
| Bill Summary |
A bill to ban interactive gambling. |
| Bill Status |
Passed out of the California Assembly, and is temporarily residing in the state Senate Rules Committee. |
| Latest Action |
AB 1229 was passed by the Assembly on May 30 with a 61-2 vote. The bill now resides in the Senate Rules Committee awaiting assignment. It most likely will soon be referred to the Government Organization Committee; Frommer's office predicts that the bill will be heard on June 26 by that committee. Next stop for the bill would probably be the Appropriations Committee and then sent to the Public Safety Committee. |
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| Outlook | Based upon the background of the bill's author, Assembly Member Dario Frommer (D-Glendale), AB 1229 has good chance of passing. Frommer previously worked as appointments secretary to California Governor Gray Davis and as an advisor to Gray in previous
positions. Frommer also served as a chief of staff to former Senator Art Torres. On the other hand, the California legislature has been battling an energy crisis that has sent rolling blackouts throughout the
state. This issue has taken precedence over many other matters facing the state government. AB 1229 could end up fading from consideration for this reason, dying before a full vote by the California
legislature. Previous bills that would ban interactive gambling in California have failed.
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| U.S. VIRGIN ISLANDS |
Bill No. 24-0046 |
| Bill
Summary | Bill would put in place a regulatory structure to permit interactive gambling from the Virgin Islands. |
| Bill Status |
Currently being held in committee pending legal analysis. |
| Latest Action |
This bill was heard by the Senate Committee for Economic Development, Agriculture and Consumer Protection, where two amendments were proposed. Following meetings on May 11 and 14, the committee requested that legal analysis be provided from both the Secretary General of the Virgin Island Department of Justice and the legislative legal counsel. |
| Outlook |
Unsure. Like the Nevada bill, there has been no determination whether the zederal government could prevent a state or territorial government from offering interactive gambling services. In addition, no definitive decision has been made regarding whether the Wire Wager Act prohibits games of chance in addition to sports wagering activities. |
Bills Awaiting Action
A number of bills have been introduced during the current legislative session that have not seen any action of late.
Federal
HR 556 (the Leach Bill)
This is the second attempt by Rep. James Leach of Iowa to prohibit Internet gambling by making it nearly impossible for Americans to pay for their online gambling activities. The bill was introduced in February 2001 and sent to the House Judiciary and Financial Services Committee, where it still remains. While the bill has yet to see any action in committee, there is a possibility that a prohibition bill containing similar language to HR 556 could be introduced this session by Representative Bob Goodlatte. A spokesman for Leach indicated that the congressman is working hard for the bill to be considered by the committee.
Internet Gambling Prohibition Act
Although Representative Bob Goodlatte, R-Va. hasn't actually introduced this year's version of the bill; its day is coming soon. A spokesperson for the congressman confirmed that Goodlatte plans on presenting his prohibition bill within the next "two weeks." Rumor has it that this year's edition will take a page from the Leach Bill, adopting language that would block various payment methods used for Internet gambling activities.
For those who may have forgotten Goodlatte's past efforts, IGN has compiled a list of action on HR 3125, the Internet Gambling Prohibition Act of 2000.
Amateur Sports Integrity Act, S. 718 (the McCain Bill)
Although Sen. John McCain failed in his bid to gain the Republican Party's nod to run for president during the 2000 campaign, he's lost none of his spark when it comes to engaging in battle. On April 5, McCain introduced his bill to outlaw betting on all amateur sporting events in Nevada (the only state that allows sports betting), including college and Olympic events.
S. 718 has been the focus of several hard-fought battles between senators, and featured swipes that Muhammad Ali would have envied in his prime. Despite these battles in the Senate Commerce Committee, S. 718 managed to survive, earning a 10-10 tie vote on May 3. The bill has since been placed on the Senate legislative calendar. No date for the vote has been set.
State
Oregon: HB 2823
This Net betting prohibition bill was introduced at about the same time as a similar bill banning Internet gambling was brought before the state senate, SB 755. Since then, HB 2823 has languished in the House Judiciary Committee where it’s unlikely to leave, while SB 755 has flourished.
New Jersey: A-3150
This controversial bill would authorize currently licensed land-based casinos in New Jersey to offer the same games over the Internet. Unlike the similar bill up before the Nevada state senate, New Jersey’s A-3150 has failed to garner great support amongst legislators and casino operators alike. The bill currently resides in the Commerce, Tourism, Gaming and Military and Veterans Affairs Committee, where it was sent on January 18. The bill's author, Assemblyman Tony Impreveduto has since vowed that, should A-3150 fail to make any progress, he will introduce next session a new bill authorizing local casinos to offer their games online.
Indiana: HB 1042
This bill prohibiting Internet gambling failed to gain support amongst Indiana legislators. It has languished in the Public Policy and Ethics and Veterans Affairs committee since January. According to the bill’s author, the bill is unlikely to ever see further action.
Iowa: HF 13
This bill, first introduced in January before being sent to the House Standing Committee on State Government, would prohibit a person from using the Internet to conduct or participate in a lottery or in a game for any sum of money or property, to make a bet, to engage in bookmaking, or to deliver a wager for a fee. HF 13, however, has seen no action since that time and remains unlikely to be passed out of committee.