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 California, where the state's efforts to stop Internet gambling have advanced. The Assembly passed AB 1229 yesterday with a 61-2 vote. It now heads to the Senate.
No committee assignment has been made and the bill's author, Assemblyman Dario Frommer, hasn't found an ally in the Senate to get the bill introduced for a vote, but a spokesman told IGN that the ban bill is likely to succeed.
"The current explosion of unregulated Internet casinos leaves Californians just a mouse-click away from losing their hard-earned money to fraudulent offshore casinos," Frommer said. "This bill will put an end to that."
A similar prohibition effort is steamrolling its way through the Oregon legislature. This week the House E-government Committee passed an amended version of SB 755. The bill has been placed on the docket for a house vote. If it's passed, it will return to the Senate for a final vote.
"Right now, it looks like its going to pass," a spokesman for Sen. Richard Metzger, the bill's author, said. If all goes well for SB 755, it could be enacted sometime this summer.
Following is a rundown of bills that are living and breathing for the time being:
| CALIFORNIA | AB 1229 |
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| Bill Summary | A bill to ban interactive gambling. |
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| Bill Status | On May 30, the bill was passed by a vote of 61-2 in the Assembly. |
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| Latest Action | After being passing in the Assembly, the bill heads to the Senate where it will likely land in one of three committees: Government Organization Committee, Appropriations Committee or the Public Safety Committee.
Before its passage in the assembly, the bill was amended to add protection for free games and contests conducted over the Internet. Another amendment would protect fantasy sports sites that feature pay-to-play games; where the amount of money a player pays to play has no bearing on the prizes awarded.
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| Outlook | Based upon the background of the bill’s author, Assemblyman 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 getting a full vote by the California legislature. Previous bills that would ban interactive gambling in California have failed.
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| NEVADA | AB 578 |
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| Bill Summary | AB 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 their introduction, the two bills have been combined into one, AB 578. |
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| Bill Status | Dropped from schedule before voting could take place. Currently AB 578 remains in limbo. |
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| Latest Action | AB 578 was voted out of the Senate Judiciary Committee on May 21, whereupon the bill was placed on the desk of the secretary of the Senate. The bill remained there while legislators other legislation needing to be handled before its Monday deadline passed. AB 578 was never voted on, nor even placed on the voting schedule. Despite this, the bill's author, Assemblymember Merle Berman warned that those watching the bill's progress shouldn't believe news reports announcing the AB 578's death. Instead, under legislative rules, a member of the Judiciary Committee from either house could reintroduce the bill. There are only a few days remaining before the Nevada legislature closes up for two years, but the bill's supporters say that anything can and will happen -- including the bill finally passing. | |
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| Outlook | Politics seem to be playing a part in this bill's future. Assembly Judiciary Chairman Bernie Anderson likened the debates amongst legislators to a game of ping pong. "We volley and they return volley," he told IGN. As the bill has wended its way through committees in both houses, a number of amendments have been tacked on, some not even related to Internet gambling. The final version is vastly different from the original bill. If it does get reintroduced, AB 578 may shed the amendments weighing it down. If so, Berman is confident that the bill will pass. Should the bill pass, it will need the governor's signature for final implementation. Nevada Governor Kenny Guinn remains a dark horse, having kept private his opinions about Internet gambling. Even if the bill passes and is signed by the governor, it will take up to two years before any licenses could be issued. Several factors will cause the delay, including getting the state regulatory bodies to pronounce that online gambling will comply with federal statutes. Plus, the regulators have to work out just how they'll be able control the new service.
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| U.S. VIRGIN ISLANDS | Bill No. 24-0046 |
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| Bill Summary | Bill would put in place a regulatory structure to permit interactive gambling from the Virgin Islands. |
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| Bill Status | Currently being held in committee pending legal analysis. |
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| 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. |
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| Outlook | Unsure. 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.
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| OREGON | SB 755 |
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| Bill Summary | Prohibits Internet gambling. Bill would also make gambling debts collectable. |
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| Bill Status | After its May 17 public hearing, SB 755 was heard by the House Advancing E-government Committee, where it was amended and passed on May 25. Now known as 755B, the bill has been placed on the docket. |
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| Latest Action | Slated for a vote by the Oregon House within the next two weeks. |
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| Outlook | Good chance of passing. The bill garnered support among state banking and financial groups early on. With its latest amendments, 755 B has been able to appease concerns from account wagering companies currently based within Oregon. |
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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 hasn't actually introduced this year's version of the bill; its day is coming soon. A spokesperson for the congressman confirmed today 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.
S. 718 (the Amateur Sports Integrity Act)
Although 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 S. 718 as a means of outlawing betting on all amateur sporting events in Nevada (the only U.S. 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 Level
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.
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.
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.