http://www.charlotte.com/mld/charlotte/business/14644673.htm
May 23,2006
Lawmakers reluctant to aid Internet betting
WILLIAM ROBERTS
Bloomberg News
<!-- begin body-content -->MGM Mirage, Harrah's Entertainment Inc. and other U.S. casino operators are increasing pressure on Congress to consider legalizing online gambling -- at the same time lawmakers are seeking to tighten criminal penalties for it.
The companies are trying to take advantage of a congressional backlash against gambling triggered by the Jack Abramoff scandal, involving his lobbying on behalf of Indian casinos. The casinos say the best way to control the $12 billion Internet betting business -- which is based overseas while drawing more than half its revenue from the U.S. -- is to regulate and tax it.
"The argument the industry is making is, if it is being done offshore, why not bring it in to the U.S. so it can be regulated?" says Sen. John Ensign, a Nevada Republican who has discussed the issue with representatives of Las Vegas-based Harrah's, the world's largest casino owner. "It doesn't look like you can ban it."
The companies, which according to Federal Election Commission records have so far contributed more than $900,000 to congressional candidates in this fall's elections, are pushing lawmakers to take a first step toward legalization by creating a federal commission to study it. Ensign and Senate Minority Leader Harry Reid, a Nevada Democrat, say the proposal has a chance of clearing the Senate this year.
Lawmakers have become wary of gambling issues since a federal investigation of Abramoff uncovered a web of connections between some of them and casinos. Abramoff pleaded guilty in January to fraud and conspiring to corrupt public officials on behalf of clients, including Indian-tribe casino operators and an online broker of state lottery tickets.
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May 23,2006
Lawmakers reluctant to aid Internet betting
WILLIAM ROBERTS
Bloomberg News
<!-- begin body-content -->MGM Mirage, Harrah's Entertainment Inc. and other U.S. casino operators are increasing pressure on Congress to consider legalizing online gambling -- at the same time lawmakers are seeking to tighten criminal penalties for it.
The companies are trying to take advantage of a congressional backlash against gambling triggered by the Jack Abramoff scandal, involving his lobbying on behalf of Indian casinos. The casinos say the best way to control the $12 billion Internet betting business -- which is based overseas while drawing more than half its revenue from the U.S. -- is to regulate and tax it.
"The argument the industry is making is, if it is being done offshore, why not bring it in to the U.S. so it can be regulated?" says Sen. John Ensign, a Nevada Republican who has discussed the issue with representatives of Las Vegas-based Harrah's, the world's largest casino owner. "It doesn't look like you can ban it."
The companies, which according to Federal Election Commission records have so far contributed more than $900,000 to congressional candidates in this fall's elections, are pushing lawmakers to take a first step toward legalization by creating a federal commission to study it. Ensign and Senate Minority Leader Harry Reid, a Nevada Democrat, say the proposal has a chance of clearing the Senate this year.
Lawmakers have become wary of gambling issues since a federal investigation of Abramoff uncovered a web of connections between some of them and casinos. Abramoff pleaded guilty in January to fraud and conspiring to corrupt public officials on behalf of clients, including Indian-tribe casino operators and an online broker of state lottery tickets.
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