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Today: July 07, 2006 at 7:21:34 PDT
Congress may fold casinos' bid
GOP sees ban of Internet gaming as winning ticket
By Lisa Mascaro
[SIZE=-2]Las Vegas Sun[/SIZE]
WASHINGTON - Any hopes Las Vegas casinos had of the federal government gently starting to loosen prohibitions on Internet gambling are likely stalled now that U.S. House Republicans have decided to target online betting as a cornerstone of their election-year American Values Agenda.
The casinos have been watching on the sidelines as the online jackpot has become a lucrative $15 billion industry worldwide in just a few short years. Internet gambling is the fastest-growing segment of the industry, with 8 million Americans gambling - illegally - online.
Earlier this year, the American Gaming Association called for a congressional study to determine the feasibility of perhaps regulating online gambling, much as Nevada and other states oversee rules for brick-and-mortar casinos. Nevada Reps. Jon Porter, a Republican, and Shelley Berkley, a Democrat, joined forces this spring to introduce legislation establishing a study commission.
But that objective is essentially doomed now that House Republicans have made anti-gambling legislation part of their conservative agenda of 10 bills - including bans on gay marriage, flag burning and abortion - to be addressed in the run-up to the November elections.
As early as next week, legislation that would clamp down on Internet gambling could be headed for a floor vote in the House, where many believe it is likely to pass. Its prospects in the Senate remain less certain.
David Stewart, a Washington attorney who represents the American Gaming Association and companies interested in Internet gambling, said casinos intend to watch the election-year action unfold, then figure out their next move.
Congress has tried repeatedly to strengthen the prohibitions against online gambling over the next decade, but has yet to pass any new laws on the subject.
"We've been around this track a lot," Stewart said.
If Internet gambling legislation is not approved this year, Porter and Berkley would "be in fine shape to go forward" with their push for a study, Stewart said.
"If this does happen, it might not be very sensible to go after it next year," he added.
The casinos' quiet persistence is what motivates traditional values advocate James Dobson's efforts to make sure that 2006 is the year that online betting is banned for good.
Dobson's Colorado-based Focus on the Family group believes it's only a matter of time before the gaming industry pushes for legalization of online gambling. The organization believes that online gambling is even more problematic than casino action because it brings wagering into homes.
"This year is one of our last chances to get this legislation passed. It's going to be more and more difficult in the future just because of the momentum this thing's carrying with it," said Chad Hills, a gaming policy analyst at Focus on the Family. "The gambling industry is not going to remain neutral on this because they're starting to see the dollar signs flash."
House Republicans plan to roll out conservative-oriented bills as part of their American Values Agenda in the next several weeks. GOP leaders hope the debates - coupled with last month's Senate debates over gay marriage and flag burning - will motivate conservative voters on Election Day, helping fend off Democratic efforts to gain the majority in the lower chamber.
Although national polls show a modest backlash against gambling, neither side of the current debate could offer studies on American attitudes specifically toward Internet gaming.
While online gambling is already illegal, those betting with the click of a mouse are rarely prosecuted. The House legislation aims to offer stronger tools to go after offenders.
One bill authored by longtime anti-gambling crusader Rep. Bob Goodlatte, R-Va., would update a 1961 law that makes it a crime to phone a bookie to place bets, adding computer technology to cover the more common 21st century means of wagering.
The other proposal, by fellow Republican Jim Leach of Iowa, would make it a crime to use credit cards to make online bets. Both measures are being merged into one bill.
House Majority Leader John Boehner of Ohio said as he released the Republican agenda last week that the gambling ban and other bills represent "values that have defined the American character, protected our families and shaped our society."
The House leadership's strategy may not be much help to Porter, who is in a tight re-election race in a district with relative political parity. The anti-Internet gambling effort could put Porter in the awkward position of opposing his own party.
Porter says he is continuing to drum up support for his bill.
"Members of Congress need to have a comprehensive understanding of Internet gambling before making any rash decisions about its future," Porter said in a statement.
Given the high profile that the House leadership has put on the anti-gambling legislation, many experts expect it will pass the lower chamber.
They doubt, however, that Republicans would simultaneously move forward on the Porter-Berkley bill, essentially sidelining it for this session.
"Obviously, the study bill is not on the American Values list," said Linda Shorey, a Harrisburg, Pa., lawyer who specializes in gaming issues.
Lisa Mascaro can be reached at (202) 662-7436 or at lisa.mascaro@lasvegassun.com.
Today: July 07, 2006 at 7:21:34 PDT
Congress may fold casinos' bid
GOP sees ban of Internet gaming as winning ticket
By Lisa Mascaro
[SIZE=-2]Las Vegas Sun[/SIZE]
WASHINGTON - Any hopes Las Vegas casinos had of the federal government gently starting to loosen prohibitions on Internet gambling are likely stalled now that U.S. House Republicans have decided to target online betting as a cornerstone of their election-year American Values Agenda.
The casinos have been watching on the sidelines as the online jackpot has become a lucrative $15 billion industry worldwide in just a few short years. Internet gambling is the fastest-growing segment of the industry, with 8 million Americans gambling - illegally - online.
Earlier this year, the American Gaming Association called for a congressional study to determine the feasibility of perhaps regulating online gambling, much as Nevada and other states oversee rules for brick-and-mortar casinos. Nevada Reps. Jon Porter, a Republican, and Shelley Berkley, a Democrat, joined forces this spring to introduce legislation establishing a study commission.
But that objective is essentially doomed now that House Republicans have made anti-gambling legislation part of their conservative agenda of 10 bills - including bans on gay marriage, flag burning and abortion - to be addressed in the run-up to the November elections.
As early as next week, legislation that would clamp down on Internet gambling could be headed for a floor vote in the House, where many believe it is likely to pass. Its prospects in the Senate remain less certain.
David Stewart, a Washington attorney who represents the American Gaming Association and companies interested in Internet gambling, said casinos intend to watch the election-year action unfold, then figure out their next move.
Congress has tried repeatedly to strengthen the prohibitions against online gambling over the next decade, but has yet to pass any new laws on the subject.
"We've been around this track a lot," Stewart said.
If Internet gambling legislation is not approved this year, Porter and Berkley would "be in fine shape to go forward" with their push for a study, Stewart said.
"If this does happen, it might not be very sensible to go after it next year," he added.
The casinos' quiet persistence is what motivates traditional values advocate James Dobson's efforts to make sure that 2006 is the year that online betting is banned for good.
Dobson's Colorado-based Focus on the Family group believes it's only a matter of time before the gaming industry pushes for legalization of online gambling. The organization believes that online gambling is even more problematic than casino action because it brings wagering into homes.
"This year is one of our last chances to get this legislation passed. It's going to be more and more difficult in the future just because of the momentum this thing's carrying with it," said Chad Hills, a gaming policy analyst at Focus on the Family. "The gambling industry is not going to remain neutral on this because they're starting to see the dollar signs flash."
House Republicans plan to roll out conservative-oriented bills as part of their American Values Agenda in the next several weeks. GOP leaders hope the debates - coupled with last month's Senate debates over gay marriage and flag burning - will motivate conservative voters on Election Day, helping fend off Democratic efforts to gain the majority in the lower chamber.
Although national polls show a modest backlash against gambling, neither side of the current debate could offer studies on American attitudes specifically toward Internet gaming.
While online gambling is already illegal, those betting with the click of a mouse are rarely prosecuted. The House legislation aims to offer stronger tools to go after offenders.
One bill authored by longtime anti-gambling crusader Rep. Bob Goodlatte, R-Va., would update a 1961 law that makes it a crime to phone a bookie to place bets, adding computer technology to cover the more common 21st century means of wagering.
The other proposal, by fellow Republican Jim Leach of Iowa, would make it a crime to use credit cards to make online bets. Both measures are being merged into one bill.
House Majority Leader John Boehner of Ohio said as he released the Republican agenda last week that the gambling ban and other bills represent "values that have defined the American character, protected our families and shaped our society."
The House leadership's strategy may not be much help to Porter, who is in a tight re-election race in a district with relative political parity. The anti-Internet gambling effort could put Porter in the awkward position of opposing his own party.
Porter says he is continuing to drum up support for his bill.
"Members of Congress need to have a comprehensive understanding of Internet gambling before making any rash decisions about its future," Porter said in a statement.
Given the high profile that the House leadership has put on the anti-gambling legislation, many experts expect it will pass the lower chamber.
They doubt, however, that Republicans would simultaneously move forward on the Porter-Berkley bill, essentially sidelining it for this session.
"Obviously, the study bill is not on the American Values list," said Linda Shorey, a Harrisburg, Pa., lawyer who specializes in gaming issues.
Lisa Mascaro can be reached at (202) 662-7436 or at lisa.mascaro@lasvegassun.com.