Attempts to merge and pass online gambling bills sponsored by Rep. Bob Goodlatte, R-Va and Rep. Jim Leach, R-Iowa are likely to fail because of conflicting legal issues with the horse racing act.
"I think there can be aspects of it [Wire Act] in the final bill ... It will have to be carefully done. We want to do it in such a way that a consensus emerges. We're hopeful. There are no assurances to anything." said Rep. Jim Leach to Congress Daily.
"It's a mess," replied one gambling industry lobbyist who represents foreign gaming companies.
Goodlatte went out of his way not to offend the horse racing industry, which has strong allies such as Senate Majority Whip McConnell and House Homeland Security Appropriations Subcommittee Chairman Harold Rogers, both Kentucky Republicans. Goodlatte's bill was revised to say that "nothing in this act may be construed to prohibit any activity that is allowed" under the horse racing act.
"It's hard to say which side caved. But the horse guys have real money in this. My guess is that [the] Department of Justice caved," commented the lobbyist representing gambling operators.
Meanwhile a House Republican aide suggested the odds of an agreement between the Leach and Goodlatte camps are about as long as the chances of hitting a jackpot.
Lobbyists and legislators note that two bills to ban most forms of Internet betting do not address pari-mutuel wagering on horse races. The Justice Department maintains the 1961 Wire Act, which prohibits businesses from using wire transmissions to accept bets over state and foreign lines, gives it authority to prosecute betting on all forms of interstate gambling, including horse racing.
If anything, lawmakers have made the issue even more complex. In 2000 Rogers placed language into an appropriations conference report that expanded the horse racing act to include interstate wagering via telephone or other electronic media. Critics said the provision basically legalized interstate pari-mutuel gambling over the Internet. The Department of Justice disagreed with that interpretation.
Factoring the horse racing act in the online gaming bill is a mandatory but seemingly impossible requirement. Goodlatte's and Leach's sponsored bills are very likely to endure the same faith of previous attempts to pass anti online gambling legislations.
Originally published on June 19 2006 - TheOnlineWire.com
"I think there can be aspects of it [Wire Act] in the final bill ... It will have to be carefully done. We want to do it in such a way that a consensus emerges. We're hopeful. There are no assurances to anything." said Rep. Jim Leach to Congress Daily.
"It's a mess," replied one gambling industry lobbyist who represents foreign gaming companies.
Goodlatte went out of his way not to offend the horse racing industry, which has strong allies such as Senate Majority Whip McConnell and House Homeland Security Appropriations Subcommittee Chairman Harold Rogers, both Kentucky Republicans. Goodlatte's bill was revised to say that "nothing in this act may be construed to prohibit any activity that is allowed" under the horse racing act.
"It's hard to say which side caved. But the horse guys have real money in this. My guess is that [the] Department of Justice caved," commented the lobbyist representing gambling operators.
Meanwhile a House Republican aide suggested the odds of an agreement between the Leach and Goodlatte camps are about as long as the chances of hitting a jackpot.
Lobbyists and legislators note that two bills to ban most forms of Internet betting do not address pari-mutuel wagering on horse races. The Justice Department maintains the 1961 Wire Act, which prohibits businesses from using wire transmissions to accept bets over state and foreign lines, gives it authority to prosecute betting on all forms of interstate gambling, including horse racing.
If anything, lawmakers have made the issue even more complex. In 2000 Rogers placed language into an appropriations conference report that expanded the horse racing act to include interstate wagering via telephone or other electronic media. Critics said the provision basically legalized interstate pari-mutuel gambling over the Internet. The Department of Justice disagreed with that interpretation.
Factoring the horse racing act in the online gaming bill is a mandatory but seemingly impossible requirement. Goodlatte's and Leach's sponsored bills are very likely to endure the same faith of previous attempts to pass anti online gambling legislations.
Originally published on June 19 2006 - TheOnlineWire.com
