Senators oppose new ‘Net gambling measure

Suzanne Struglinski

Friday, Aug. 1, 2003 | 11:21 a.m.

Suzanne Struglinski

WASHINGTON-- A Senate panel quickly and unanimously passed a bill Thursday aimed at crippling Internet gambling through banning the use of credit cards, checks or money transfers to place or pay out bets. With the House's approval of a similar bill in June, Thursday's action moves the bill closer to final approval than ever before.

But a last-minute change removing language that would allow states to legalize the practice within its boundaries, made through an amendment by Senate Banking Committee Chairman Sen. Richard Shebly, R-Ala., has Nevada senators and the casino industry concerned.

"The bill is unbalanced and unfair," said Frank Fahrenkopf, American Gaming Association president, adding that it could even expand online gaming as it stands now since Indian casinos and horse and dog racing could still participate in online betting.

Fahrenkopf noted that AGA uses a three-prong test to determine if it will support legislation. This bill failed two parts, since it does not treat all forms of gaming the same and does not preserve states' rights. He noted that this was not a factor in Arizona Sen. Jon Kyl's original bill or in the House version of the bill passed last month.

Sen. Harry Reid, D-Nev., and Sen. John Ensign, R-Nev., also could not support the bill, based on the state language removal.

The House approved Rep. Spencer Bachus' Internet gaming ban bill on June 10, with a much longer floor debate. The approved bill contained the exemptions for state-regulated gaming industries such as horse and dog racing, as well as casinos that could offer an Internet gambling site if Nevada wanted to figure out how to regulate it in the state.

Rep. Jim Gibbons, R-Nev., voted for the House version, with Reps. Jon Porter, R-Nev., and Shelley Berkley, D-Nev., voting against it.

The bill approved Thursday must still pass the Senate floor before it goes to conference with House negotiators. There selected members of each chamber will iron out differences between the two versions to form one new bill to be voted on again and sent to the president, if approved.

The Senate is expected to adjourn today for its August recess, so any action would take place after Sept. 3

Previously, only the Senate passed a similar ban in 1998 and 1999. In 2000 a House bill failed to gain a two-thirds majority needed for passage, as set by a special rule created for the bill.

A Reid aide said he wants to make sure there is nothing in the bill that could limit Nevada from regulating itself, should the state opt to allow Internet gaming in the future. As the bill stands now, it is not clear if that is the case.

MGM MIRAGE closed its Internet gambling site, which catered to non-U.S. gamblers, saying the legal and political climate on the issue was unclear.