Gaming industry is unconcerned about terrorism bill

Monday, Oct. 22, 2001 | 8:59 a.m.

There is little concern that a money laundering bill passed by the House will hurt casinos, gaming industry officials say.

The House version of the anti-terrorism bill stiffens the reporting requirements financial institutions must adhere to in dealing with overseas accounts and transactions. It also makes it a crime to attempt to smuggle $10,000 or more in currency across U.S. borders.

"It doesn't really impact us (the gaming industry) any," said Frank Fahrenkopf, chief executive of the American Gaming Association.

Nevada has an exemption from federal reporting requirements, as the state's casinos operate under state gaming regulations that require any cash transaction of $3,000 or more to be filed with gaming regulators. Nevada casinos also file reports dealing with any "suspicious" transaction directly with the U.S. Treasury Department. Casinos outside Nevada must report transactions of $10,000 or more.

Even though non-Nevada casinos don't have the exemption from federal oversight, Fahrenkopf said they are unlikely to be affected by the passage of this particular House bill, as the Treasury Department is already drafting new regulations that will tighten their reporting requirements. Draft regulations are expected in December or January.

"You can be sure if that differs significantly from what Nevada is doing, sooner or later, Treasury will push Nevada to change its reporting requirements," Fahrenkopf said.

The only provision dealing directly with gambling was a provision that banned the use of credit cards, checks or electronic fund transfers in "unlawful" Internet gambling. This provision was stripped out of the final House bill by the House Republican leadership.