No action on Internet gaming seen until 2000

Friday, Oct. 22, 1999 | 11:59 a.m.

WASHINGTON -- A House version of legislation banning Internet gambling was introduced Thursday, but industry observers doubt anything will happen on the issue until next year.

The bill's lead sponsors were Rep. Frank LoBiondo, R-N.J., and Rep. Bob Goodlatte, R-Va.

Rep. Jim Gibbons, R-Nev., is a co-sponsor. Another co-sponsor is Rep. Frank Wolf, R-Va., a vocal opponent of the gaming industry and a usual foe of Nevada's gaming industry.

The House bill prohibits anyone from making or taking a bet on an Internet site. Current laws ban interstate gambling on phone and wires but do not specifically ban Internet gaming. Many gaming websites are based offshore, beyond the reach of U.S. authorities.

The House bill is sister legislation to a Senate bill co-sponsored by Sen. Richard Bryan, D-Nev., and Sen. Jon Kyl, R-Ariz., which awaits a floor vote.

Sen. Harry Reid today said the chances of the bills passing this year are "pretty slim."

The session is likely to end within the next two weeks. If no action is taken on the bills by adjournment, the bills would be considered when Congress returns in January. The bills would not need to be reintroduced, unless Congress fails to take action on them by the end of the 106th Congress, which closes at the end of 2000.

The House bill is little changed from a bill introduced by LoBiondo and Goodlatte last year. However, that bill stalled in the Judiciary Committee, which was occupied with the impeachment of President Clinton, and the bill did not make it to a committee vote.

Sue Schneider, chair of the Interactive Gaming Council, an industry trade and lobbying group supporting Internet gambling, said the House bill offered only minor improvements to the Kyl bill. One provision clarifies that Internet advertising for real-world casinos like Caesars Palace is permitted, so long as the ads do not draw customers to an online gaming site.

"There's not really anything new, in terms of breaking new ground," Schneider said. "I'm surprised they didn't make more changes, because the Kyl bill has a lot of problems with it."

Reid supports a ban on unregulated Internet gambling, even if Nevada gaming corporations ever decided to enter the new industry. He added that Internet gaming offers little threat to Nevada's economy.

"Would you rather play 21 on your computer or go into Caesars Palace, with all that ambience?" Reid said.