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.
All the materials and information contained in Interactive Gaming News and this article are copyrighted unless otherwise noted. Any unauthorized use of materials on this site may violate copyright, trademark and other laws and intellectual property rights of Interactive Gaming News, a River City Group LLC publication. Materials from this site may not be copied or distributed, or republished, uploaded, posted, decompiled, or transmitted in any way, without the prior written consent of Interactive Gaming News. The materials in this site could include technical inaccuracies or typographical errors. The materials in this site are provided "as is" and without warranties of any kind either expressed or implied, to the fullest extent permissible pursuant to applicable law. All usage requirements are spelled out in full in the Terms of Use section of this site.
State Legislation
New York: A3434
Summary - A3434 would amend sections 225.00 and 225.15 of the New York penal law and add SS225.45 and 225.50 as they relate to possession of electronic or computerized gambling records and computerized gambling. The bill aims to prohibit the use of computer systems or storage media, including the Internet,
in furtherance of illegal gambling or possession of gambling records.
Status - The measure was introduced on Jan. 27, 2007 by Rep. Sam Hoyt and referred to the Committee on Codes. It has seen no movement since.
Outlook - This bill is similar to S66, which is also currently in Codes. An industry legal expert suggested that once a bill is referred to Codes, it has a good chance of passing.
New York: S66
Summary - S66 would amend section 225.00 of the New York penal law as it relates to gambling over the Internet within provisions of law relating to gambling offenses. The amended sections would include "Advance gambling activity," which includes persons that aid in the advancement of an illegal gambling activity, including Internet gambling.
Status - The measure was pre-filed on Jan. 3, 2007 by Sens. Frank Padavan, Mary Lou Rath and Dale Volker, and referred on Jan. 23 to the Committee on Codes, often the most powerful committee in any state legislature. The measure was introduced into the State Assembly (A6302) on March 6, 2007by John McEneny and was immediately referred to the Assembly Committee on Codes.
Outlook - The Committee on Codes is chaired by Sen. Volker, whose presence gives the measure a good chance of passing. On the other hand, the New York Bar Association (NYBA) has sent a letter to both Padavan and McEneny disapproving of the bill on the grounds that the new prohibitions are unnecessary, as present criminal facilitation and aiding and abetting doctrines sufficiently cover conduct directly tied to gambling crimes. Furthermore, the NYBA said, the inclusion of mere "endorsement" is overbroad, would chill legal speech, and thus raises serious constitutional concerns.
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, which Codey also authored. The bill broadens 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 and 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.
Federal Legislation
HR 2610 - The Skill Game Protection Act
Summary - HR 2610, introduced on June 7, 2007 by Rep. Robert Wexler, D-Fla., would exempt skill games such as poker, mahjong, bridge and backgammon from the Unlawful Internet Gambling Enforcement Act (UIGEA). Such an exemption would theoretically allow for the return of online poker providers, exiled after the legislation was enacted in October, to the U.S. marketplace. The legislation, according to Wexler spokesman Josh Rogin, "allows Americans to play poker online as they should have every right to do."
Status - The bill has been referred to the House Committees on Financial Services, Judicial Services and Energy and Commerce.
Outlook - Although the skill-games carveout would seem like a positive solution for all those involved in the industry, some dissension has arisen. Some in the media, for instance, have argued that poker should not receive an exemption "at the expense of other types of gambling such as blackjack or sports betting."
HR 2607 - The Internet Gambling Regulation and Enforcement Act
Summary - HR 2607, the Internet Gambling Regulation and Tax Enforcement Act, is the tax counterpart to H.R. 2046. It would create a 2 percent tax on deposits, with half earmarked to federal government and half earmarked to the state government.
Status - The bill, introduced June 7, has been referred to the House Committee on Ways and Means.
Outlook - Supporters say the bill has the potential to raise between $6 billion and $25 billion dollars for federal priorities including SCHIP, education, health care and veteran's services.
HR 2046 - The Internet Gambling Regulation and Enforcement Act
Summary - HR 2046, authored by Rep. Barney Frank, D-Mass., proposes not to repeal the Unlawful Internet Gambling and Enforcement Act (UIGEA), but to defend companies against it. The UIGEA would remain in place, in that banks and credit card companies would still be prevented from doing business with illegal online gaming operators, but HR 2046 proposes a federal licensing and regulation regime for offshore Internet gambling companies that would be overseen by the Financial Crimes Enforcement Network.
Status - The bill, introduced on April 26, has been referred to the House Financial Services Committee, of which Frank is the chair, and the House Energy and Commerce Committee. The bill was debated in a committee hearing on June 8, attended by six witnesses speaking for and against I-gaming regulation.
Outlook - Frank, who is also chairman of the House Financial Services Committee, has said that he would not put the legislation to a House vote unless he knew he could win. At last count, Frank estimated his legislation had at most 130 to 140 votes out of 435 in the House.
HR 2140 - The Internet Gaming Study Act
Summary - HR 2140, introduced by Rep. Shelley Berkley, D-Nev., proposes a one-year study on Internet gambling to be conducted by the National Research Council, a branch of the National Academy of Sciences.
Status - Berkley submitted HR 2140 on May 3 and it was referred to the Committees on the Judiciary, House Financial Services, and Ways and Means. It has since been referred to the Judiciary Subcommittee on Crime, Terrorism and Homeland Security.
Outlook - HR 2140 is backed by the American Gaming Association, which has long called for this type of study. One industry expert said that this study could go a long way in getting Congress to take Frank's bill seriously.