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 York: A3434
Summary - A3434 would amend sections 225.00 & 225.15 of the New York penal law and add SS225.45 & 225.50 as it relates 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, 2007 by 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. Furthermore, the New Jersey Legislative session ends in four months. It is likely A995 will die in session.
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 & 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. Again, because the session ends at the end of the year, it is doubtful S1106 will see any action.
Federal Legislation
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, was referred to the House Financial Services Committee, of which Frank is the chair, and the House Energy and Commerce Committee. Frank said he expects the bill to come up for debate sometime in June.
Outlook - While HR 2046 has picked up 38 co-sponsors, it is also receiving a lot of attention from groups opposed to I-gaming regulation. Two coalitions, one faith-based and one made up of American sports leagues, have written letters to the Members of Congress asking them to oppose the bill and any other similar legislation. Most recently, two U.S. Attorneys General came out in opposition to the initiative. Florida's Bill McCollum and Maryland's Doug Gansler said the bill "hinders the rights of States to prohibit or regulate gambling by their residents."
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 late on May 3 and it was referred to the Committees on the Judiciary, House Financial Services, and Ways and Means. On June 4, it was referred to the 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 exert said that this study could go a long way in getting Congress to take Frank's bill seriously. Frank recently questioned the value of studies, saying they "don't do much." He will, nonetheless, continue to support her initiative.
HR 2607 - The Internet Gambling Regulation and Tax Enforcement Act
Summary - Introduced by Rep. Jim McDermott, D-Wash., HR 2607 is the tax counterpart to H.R. 2046. It would create a 2 percent tax on Internet gambling deposits, with half earmarked to federal government and half earmarked to the state government.
Status - HR 2607 was introduced on June 7 and referred to the House Committee on Ways and Means. The bill has one cosponsor.
Outlook - As with the HR 2046, HR 2607 faces opposition from religious and family groups who have asked Members of Congress to vote against any Internet gambling related legislation. On the other hand, New York state Reps. Steve Israel, a Democrat, and Peter King, a Republican, said in an editorial for the New York Post that the U.S. I-gaming prohibition is "misdirected . . . and probably unenforceable."
HR 2610 - The Skill Games Protection Act
Summary - HR 2610 would exempt skill games like poker, mahjong, bridge and backgammon from the Unlawful Internet Gambling Enforcement Act.
Status - HR 2610 was introduced on June 7 and referred to the Committee on Financial Services and the Committees on the Judiciary, and Energy and Commerce. On July 16, the bill was referred to the Judiciary Subcommittee on Crime, Terrorism, and Homeland Security.
Outlook - 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."