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 monthly update on U.S. state and federal legislation.
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State Legislation
New Jersey: A995
Summary - A995 would authorize licensed land-based casinos in New Jersey to offer their games via the Internet.
Status - Sponsored by Assemblymen Vincent Prieto and Neil Cohen, A995 is the latest version of a bill that has appeared in the state's last three legislative sessions. A995 was introduced on Jan. 10, 2006 and referred to the Assembly Tourism and Gaming Committee. It has not moved since.
Outlook - Unlike a similar I-gaming bill that passed Nevada's legislature in 2001, this bill in its three previous manifestations in New Jersey has failed to garner much support among legislators and casino operators.
New Jersey: S1106
Summary - Senate Bill 1106, authored by Sen. Richard Codey, is identical to Senate Bill 1013 of the 2004- 2005 legislative session and Senate Bill 2376 from the 2002-2003 session, both of which Codey also authored. The bill clarifies the definition of illegal gambling to include Internet gambling and voids credit card debt incurred through illegal gambling. The bill also includes a clause establishing that only the state may sue to recover gambling losses.
Status - The bill was introduced and referred to the Senate Wagering, Tourism & Historic Preservation Committee on Jan. 26, 2006 and has not moved since.
Outlook - Codey became president of the Senate last session so it would seem that any bill with his name on it ought to be taken somewhat seriously. Nonetheless, the same bill he authored in 2004 didn't even make it out of committee.
Illinois: SB 0198
Summary - SB 0198 would allow the Illinois State Lottery to begin selling lottery tickets to Illinois residents over the Internet. Rather than a permanent, statewide launch of lottery games via the Internet, the bill proposes a pilot offering so that the Illinois Lottery may test its online system over a small area for a limited time.
Status - Sen. John Cullerton introduced this bill on Feb. 2, 2005. It passed the Revenue Committee on Feb. 17 by a vote of 6-4. On April 14, a slightly amended version passed the Senate by a vote of 32-24-01, and then on April 27, it passed the House's Gaming Committee. After much debating through the month of May, the bill was amended and inevitably came to rest before the House Rules Committee, where it has resided since May 31, 2005.
Outlook - The bill's chief sponsor in the House, Rep. Lou Lang had been very publicly supportive of the initiative throughout early and mid 2005, but it has received virtually no attention in the last 16 months.
Georgia: HB 346
Summary - HB 346 would allow the Georgia State Lottery to begin selling tickets over the Internet. Georgia residents would be able to set up electronic accounts from which money could be used to participate in lottery games. The bill's main sponsor, Terry Barnard, attempted to pass a similar bill in the 2003-2004 legislative session. Although Georgia’s House approved that bill, it never received a vote by the Senate. Lottery retailers opposed it because they feared it would take away some of their profits. To alleviate their fears, Bernard altered this session's bill to provide a clause that requires customers who wish to play online to apply for an account at a lottery retail agency. Besides verifying that players are of legal age to participate in the lottery, requiring customers to register for an account at a retail agency would also enable the lottery to track which players originated from which agencies so that a portion of the profits could still be distributed to the agencies. Jim Tudor, a lobbyist for the Georgia Association of Convenience Stores, says that the state's lottery agencies are now neutral on the bill since the new clause has been introduced.
Status - The bill was passed by Georgia's House on March 10, 2005 with a vote of 98-48 (with 29 no votes). On March 17, 2005, the state's Senate Committee issued a favorable report on the bill and sent it to the full Senate, where it had already received two full readings by March 21, 2005. The bill remained virtually untouched until being recommitted by the Senate on Jan. 9, 2006. It has not been given any attention since.
Outlook - The bill appeared to have a fair chance of succeeding in early and mid-2005 but has garnered much attention since then. Its main opponents are the standard ilk that opposes any expansion of gambling because of its detrimental effects on society. There is also the legitimate possibility that the Department of Justice would weigh in on the bill if it begins to gain momentum. The DOJ has stated on several occasions that it believes all forms of online gambling violate the Wire Act, and no state has come as close as Georgia has to allowing the sale of lottery tickets over the Internet. In March 2005, an effort in North Dakota to pass legislation that would make the state a licensing jurisdiction for online gambling was killed by a DOJ letter stating the department's opinion on the legality of such legislation. A similar letter would probably have the same affect on HB 346.
Federal Legislation
HR 4954 - The Unlawful Internet Gambling Enforcement Act
Summary - After weeks of trying, Senate Majority Leader Bill Frist, R-Tenn., managed to attach prohibitive Internet gambling legislation to a must pass bill in the Senate. In the wee hours of the morning on Sept. 30, 2006 after battling all day with committee members, Frist attached the measure to the SAFE Port Act (H.R. 4954), which improves the security at the nation's ports. The UIGEA is a relatively pared-down version of H.R. 4411, authored by Rep. Jim Leach, R-Iowa; it borrows the provisions from the Leach bill, which target U.S.-based banks, credit card companies and other Internet payment systems, prohibiting them from processing payments for online gambling sites. Unlike previous incarnations of the legislation by Rep. Bob Goodlatte, R-Va., the Frist provision does not focus on updating the Wire Act.
Status - HR 4954 passed by unanimous consent in committee and was signed in to law by President George W. Bush on Oct. 13, 2006.
Outlook - Since the legislation was signed into law on Oct. 13, at least 20 operators and providers have either pulled out of the U.S. market or sold their U.S.-facing operations altogether. The legislation also ignited a string of mergers and acquisitions in the I-gaming industry. Numerous deals have been struck since Oct. 1, with more in the works and even more in the Rumor Mill.
HR 5474 - The Internet Gaming Study Commission Act
Summary - HR 5474, authored by Rep. Jon Porter, R-Nev. would create a bipartisan panel consisting of nine appointed members to conduct a comprehensive study of Internet gambling. The panel would be given 18 months to examine the legal issues associated with online gambling and make recommendations to Congress. Rep. Shelley Berkley, D-Nev., also had significant input on the creation of the legislation. It has 50 co-sponsors.
Status - At the behest of the American Gaming Association, which announced its support for the formation of a Congressional commission to evaluate the impacts of Internet gambling in the United States, Porter and Berkley introduced HR 5474 on May 24. It was immediately referred to the House Judiciary Committee, where it still resides. It will be up to Chairman F. James Sensenbrenner to decide whether it will get a hearing and/or a mark-up. Porter took the opportunity to clarify his "yes" vote on final passage of H.R. 4954 SAFE Port Act, which included the Unlawful Internet Gambling Enforcement Act. Porter said he supported all the necessary homeland security and port security provisions included in the legislation, but not the I-gaming prohibition. He said he felt Congress did not have a comprehensive understanding of the complexities of the issue and that H.R. 5474 was necessary to clear up the confusion.
Outlook - Insiders believe that this bill may receive more co-sponsorship this year and may be given media attention, but it most likely will not be the subject of any legislative action in the near future.