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 the Virgin Islands, where progress has been made in the territorial government's pursuit of interactive gambling legislation. A second California bill, instead of prohibiting Internet betting, would permit betting on the ponies via electronic means. On the federal front, meanwhile, a new LaFalce bill has been introduced to ban most payment methods for Internet gambling activities; another bill seeks to hand the federal government complete authority over regulating e-commerce activity, thereby negating all state-level efforts to control Internet gambling.
| CALIFORNIA |
AB 471 |
| Bill Summary |
Among other things, this bill would authorize any racing association or fair to accept advance deposit wagers, or to allow these wagers through a betting system or multijurisdictional wagering hub, including via electronic means. |
| Bill Status |
Most recently AB 471 received passing votes from both houses of the California state legislature. Whether California Governor Gray Davis, who has thirty days to sign the bill, will give the O.K. on AB 471 remains up in the air. Last year, however, he vetoed a similar bill. |
| Latest Action |
AB 471 was passed by the state senate on July 18, whereupon senate proposed amendments were accepted by the assembly on July 20. |
| Outlook |
A similar bill that passed both houses of the California legislature died on Gov. Davis' desk last year. Davis refused to sign that bill and there's no guarantee that this year's bill will receive any different treatment. It's of note, however, that one of the sponsors for AB 471, Rep. Herb Wesson, sponsored a bill last year that would ban Internet gambling in the state of California. Wesson's prohibition bill also failed last year.
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| NEVADA |
AB 466 |
| Bill Summary |
AB 466 permits interactive gambling sites to operate from Nevada. |
| Bill Status |
AB 466 went in effect July 1, 2001. Now the state is looking at the legality of Internet gambling under federal law, as well as a host of other issues. A hearing on this subject is scheduled for July 31 and Aug. 1. (See related article, Nevada Gaming Commission Meeting Agenda.) |
| 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 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. Gov. Guinn signed the legislation on June 14, while the bill actually went into effect on July 1. The next step is for the Nevada Gaming Commission and the Gaming Control Board to do an in-house survey of applicable legislation on the state and federal levels. |
| Outlook |
By most accounts, Internet gambling probably 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. Further, it remains unclear whether the Interstate Wire Act federally prohibits games of chance in addition to sports wagering activities.
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| OREGON |
SB 755 |
| Bill Summary |
SB 755 prohibits Internet gambling. |
| Bill Status |
This bill was signed by Gov. John A. Kitzhaber on June 21. |
| Latest Action | To enhance its chances of passage, SB 755 was amended to permit racetrack hubs to offer interactive betting services via the Internet as part of a closed-loop system. It has passed both houses and was sent to Gov. Kitzhaber for his signature. The bill has been re-christened as 755B and will be enacted later this summer. |
| Outlook | With the bill's passage, Oregon now joins a very select group of states that have banned Internet gambling. Other states to prohibit Net betting so far include Illinois, Louisiana, Michigan and South Dakota.
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| CALIFORNIA |
AB 1229 |
| Bill Summary |
AB 1229 would prohibit most forms of interactive gambling. |
| Bill Status |
Most recently AB 1229 was passed out of the California Assembly and scheduled for a hearing by the Government Organization Committee July 10. The committee, however, has postponed the hearing. |
| Latest Action |
AB 1229 was passed by the Assembly May 30 with a 61-2 vote. It was scheduled to be heard by the senate Government Organization Committee, but the bill's sponsor cancelled the hearing to make changes to the bill. The hearing was rescheduled to July 10, whereupon the committee postponed the meeting once again. No date has been set for it to heard, although it's expected to occur in mid-August when the legislature returns from its summer recess. Should it eventually be passed by this committee, AB 1229 will head over to the Senate Appropriations Committee. |
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| Outlook | Based on 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 Davis 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. Meanwhile, Frommer's office claims that AB 1229 has garnered little comment. It's important to note, too, that a spokesperson for California Attorney General Bill Lockyer told the San Jose Mercury Sun that enforcement of this bill, should it pass, will have to come from some other office. The AG is more concerned with legalized forms of gambling in the state. "We're not sending jack-booted thugs door-to-door to see who's placing bets on their home computers," the spokesperson commented. 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 | This legislation creates a regulatory structure to permit interactive gambling from the Virgin Islands. |
| Bill Status |
On July 18 the VI Senate overwhelmingly passed the bill with a vote of 11-3. It's now slated to receive the governor's signature. |
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| Latest Action |
This bill was discussed at a Senate Committee for Economic Development, Agriculture and Consumer Protection hearing on June 29, at which time two amendments were adopted. Having been heartily endorsed by the V.I. Senate on July 18, the bill now awaits signature by Charles Turnbull, Ph.D., the territorial governor. |
| Outlook |
Unsure. As with the Nevada bill, whether the federal government could prevent a state or territorial government from offering interactive gambling services hasn't yet been determined. Further, no definitive decision has been made regarding whether the Wire Wager Act prohibits games of chance in addition to sports wagering. It's been suggested, however, that the VI government hopes to pass Bill No. 24-0046 before the federal government passes any prohibitive legislation, thus enabling the territory to grandfather in legislation for Internet gambling much like Nevada did back when casinos and sportsbooks were outlawed in the U.S. |
Bills Awaiting Action
A number of bills have been introduced during the current legislative session that have not seen any action of late.
Federal
Internet Gambling Payments Prohibition Act - HR 2579
This piece of legislation was introduced before the House of Representatives on July 20 before being referred to both the House Financial Services and House Judiciary committees. The purpose of the bill, which was introduced by Rep. John LaFalce, D-N.Y., is to prevent the use of certain bank instruments for Internet gambling, and other purposes. Last year, LaFalce co-authored a similar bill with Rep. James Leach, R-Iowa. Upon that bill's failure to pass before Congress recessed, the two legislators have split in their , with each introducing their own bill to ban the use of credit cards and other payment systems for Internet gaming. LaFalce's bill, however, could be condemned to meet the same fate as last year's bill. As it is, Leach's bill, which was introduced earlier this year, remains in committee awaiting attention.
Jurisdictional Certainty Over Digital Commerce Act - HR 2421
This bill, while not directly related to Internet gambling, would give the federal government control over all e-commerce transactions, effectively erasing any state or territorial control over Net betting issues, including both regulation and prohibition of such activity. Introduced on June 28, 2001 by Rep. Cliff Stearns, R-Fla., it was referred to the House Energy and Commerce Committee, as well as the House Judiciary Committee. On July 6, the Commerce Committee sent the bill for consideration by the Subcommittee on Commerce, Trade and Consumer Protection. The Judiciary Committee on July 16 forwarded HR 2421 to the Subcommittee on Commercial and Administrative Law.
Unlawful Internet Gambling Funding Prohibition Act - HR 556
HR 556 marks the second attempt by Rep. James Leach, R-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 Rep. 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 Rep. 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 following the 4th of July recess. 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 background on Goodlatte's efforts, IGN has compiled a list of action on HR 3125, the Internet Gambling Prohibition Act of 2000.
Amateur Sports Integrity Act - S. 718
On April 5, Sen. John McCain, R-Ariz., introduced S. 718 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. A spokesperson for McCain explained that the senator will introduce his legislation as an amendment to another bill, as yet unnamed, when it's most likely to be passed.
State
Oregon: HB 2823
This Net betting prohibition bill was introduced around the same time SB 755 was brought before the state senate. Since then, HB 2823 has languished in the House Judiciary Committee. With the adjournment of the legislature on July 7, the bill is now considered dead.
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 Nevada bill that passed, 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. The bill's author, Assemblyman Tony Impreveduto, has since vowed to re-introduce the bill if the original one isn't passed.
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. With the legislative session now closed, this bill is considered dead.
Iowa: HF 13
Iowa's 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. The bill has seen no action since that time and remains unlikely to be passed out of committee.