Internet gaming, medical marijuana bills signed

Erin Neff

Friday, June 15, 2001 | 11:16 a.m.

Gov. Kenny Guinn on Thursday signed two of the most-publicized bills from the 2001 Legislature into law, clearing the way for a medical marijuana system and Internet gaming.

With two strokes of a pen Guinn put Nevada in a precarious position, that being a debate over state's rights versus federal law.

Assembly Bill 466 enables Nevada regulators to establish rules for casinos to launch interactive gaming. The Gaming Control Commission estimates Nevada is still at least two years away from legalizing Internet gaming, in part because of federal wiretap laws.

"The federal issue could be a show-stopper," said Tony Cabot, a Las Vegas attorney who is considered a leading expert in Internet gaming.

The other measure signed by Guinn, Assembly Bill 453, establishes a medical marijuana distribution program for patients with chronic illnesses. Voters approved such a system in 1998 and 2000.

"In signing this bill I recognize the need to respect the people of Nevada who have voted twice to approve the use of marijuana for the treatment of certain illnesses," Guinn said in a statement.

Proponents of medical marijuana remain confident Nevada's system won't buck a recent U.S. Supreme Court ruling specifying that possession of marijuana is illegal, even for medical patients. But in California, and in six other states with a distribution system, patients continue to obtain medical marijuana -- in apparent violation of the Supreme Court opinion -- apparently without consequence.

"The federal drug policy is out of step with the American people," said Dan Hart of Nevadans for Medical Rights. "Doctors should be able to write a prescription for people with debilitating illnesses."

Although states continue to run medical marijuana programs, Internet gaming is in somewhat murkier waters as Nevada casinos and regulators wait on the federal courts and Congress.

The Fifth Circuit Court of Appeals is considering a case that could determine whether federal wiretap laws apply to games of chance. Some courts have held the federal law does apply, and others have ruled differently, Cabot said.

"There's some question as to its legality now, but another concern is whether the federal government can enact a law to stop states from having Internet gaming," Cabot said.

U.S. Sen. Jon Kyl, R-Ariz., has proposed banning Internet gaming, but lawmakers have yet to introduce a bill this session.

When the Internet gaming measure, sponsored by Merle Berman, R-Las Vegas, made its way through the Legislature, some lawmakers raised concerns about security for such gaming and controls to restrict minors and people from jurisdictions in which gaming is illegal.

"I think all of those technology issues are solvable," Cabot said. "The question becomes: Can you solve them in a cost-efficient manner?"

Cabot said he hoped Nevada's casino industry can prove controls are in place in a timely manner to allow gaming regulators and lawmakers to move forward toward legalizing the games.

Still, he said, the federal issue will make or break Nevada's chances.

The marijuana issue also sets up a potential state versus federal dispute; the law signed by Guinn allows the state Agriculture Department to apply to the federal government for a seed lab.

AB453 allows seriously ill Nevadans up to seven marijuana plants for personal use. The law also defelonizes possession of small amounts of marijuana.

A person found with one ounce of marijuana or less now faces a misdemeanor charge and a $600 fine for the first offense. The second offense carries a higher fine and mandates treatment. The third offense is a gross misdemeanor with an even higher fine. The fourth offense will remain a felony.

AB466 was actually written to clean up the state's work card system for casino employees. But the Internet gaming provisions were amended into the measure at the end of the session after the Internet bill was left to die in committee.

Guinn pushed to resurrect the Internet measure because he said the bill keeps Nevada's regulators as "a model for gaming regulation everywhere."

"With this bill we will be prepared to continue to serve as a leader in all areas of legalized gaming," Guinn said.