US Law Roundup - 15 May 2001

15 May 2001
Following is the latest rundown on Internet gambling legislation introduced this year in the United States.



NEVADAAB 296, AB 578
Bill SummaryAB 296 would permit interactive gambling sites to operate from Nevada. A companion bill, AB 578, would set forth the necessary licensing fee structure for interactive operators. Since introduction, the two bill have been combined into one, AB 578.
Bill StatusCurrently in Senate work session.
Latest ActionThe two bills were combined into a single bill, AB578, which was passed by a vote of 37-2 in the State Assembly. On May 15, the Senate Judiciary Committee considered amendments to the bill. A full-Senate vote is expected by end of May, although no date has been set.
Outlook This bill has garnered great support in the state Assembly. Except for a disagreement regarding the actual cost of licensing sites, most aspects of this bill have faced little opposition. The amended version of the bill is expected to pass with little opposition in the Senate. Only minor changes to the bill have been proposed in the Senate.

Should AB 578 pass, which looks likely, 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.

US VIRGIN ISLANDS Bill No. 24-0046
Bill SummaryThis bill would put in place a regulatory structure to permit interactive gambling from the Virgin Islands.
Bill StatusCurrently being held in committee pending legal analysis.
Latest ActionBill was heard by the Senate Committee for Economic Development, Agriculture and Consumer Protection. 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.
OutlookUnsure. Like the Nevada bill, 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.

CALIFORNIA AB 1229
Bill SummaryA bill to ban interactive gambling.
Bill StatusPassed out of the Public Safety Committee.
Latest Action The bill now faces consideration by the Appropriations Committee on May 23.
OutlookBased 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.

OREGON SB 755
Bill SummaryProhibits Internet gambling. Bill would also make gambling debts collectable.
Bill StatusPassed Senate, referred to House subcommittee
Latest ActionScheduled for a public hearing on May 17.
OutlookGood chance of passing. The bill garnered support among state banking and financial groups early on. With its latest amendments, 755 has been able to appease concerns from account wagering companies currently based within Oregon.

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. HR 556 has since been sent to the House Judiciary and Financial Services Committee. Last year's version of the bill failed to make it out of committee before Congress adjourned.

Bills Awaiting Action

The following bills have been introduced during the current legislative session that have not seen any action of late.

Oregon: HB 2823

This Net betting prohibition bill was introduced at about the same time as a similar bill, SB 755, banning Internet gambling was brought before the state senate. Since then, HB 2823 has languished in the House Judiciary Committee where it’s unlikely to leave.

New Jersey: A-3150

This controversial bill would authorize currently licensed land-based casinos in New Jersey to offer their games over the Internet. Unlike the similar bill in Nevada, New Jersey’s A-3150 has failed to garner great support among legislators and casino operators. The bill currently resides in the Commerce, Tourism, Gaming and Military and Veterans Affairs Committee, where it was sent on January 18.

Indiana: HB 1042

This bill prohibiting Internet gambling failed to gain support among Indiana legislators. It has languished in the Public Policy and Ethics and Veterans Affairs committee since January. According to its 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 its introduction and remains unlikely to be passed out of committee.