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Gambling Law Update
By Lawrence G. Walters, Esq.While wagering over the Internet on horseracing across state lines has been legalized in 17 states, the United States Congress is still undecided as to whether additional forms of casino-style gaming should be prohibited. Senator Jon Kyl (R-Ariz.) continues to remain the leading anti-gambling voice in Washington. His latest effort at a prohibition bill, S. 627, passed the Banking Committee last summer, and a full Senate vote is expected early in the 2004 session.
If the bill is finally passed, it will have bank regulators using their enforcement power to force banks to stop payments from going to Internet casinos, essentially making illegal most, if not all, forms of payment for gambling online. The companion legislation, H.R. 2143, has passed the House of Representatives, so the squabbling is headed for an end no matter what.
Now, with revenues from Internet Gambling bets placed from the United States toping more than $1 billion annually, according to Christiansen Capital Advisors, LLC, the online gambling industry is globally expanding. However, United States casino gaming companies may be left behind due to the possible effects of these proposed regulatory measures. A panel of legal and legislative experts assembled this past month for the National Council of Legislators and Gaming States meeting in Las Vegas to address such issues. Frank Catania, a former New Jersey state legislator and gaming regulator, now represents the Interactive Gaming Council, an international not-for-profit trade association for the online gambling industry. In his address to the meeting’s estimated 100 attendees, including 25 legislators from gaming states, he stated that Congress, in its most recent attempt to prohibit the processing of financial instruments for the purpose of Internet wagering, stalled last summer over whether state-licensed entities would be exempted from the legislation. At issue, explained Keith Kizer, a former advisor to the Nevada Gaming Commission (“NGC”) now representing the state’s Attorney General’s Office, is whether the federal Wire Act of 1961 prohibits Internet gambling. He said the United States Department of Justice believes it does, and as a result, a bill enabling the NGC to adopt regulations governing Internet gaming in the state cannot move ahead.
According to Kenneth Kirchner, a representative of the National Thoroughbred Racing Association, the $18 billion-a-year pari-mutuel industry was exempted from the Wire Act by the 1978 Interstate Horseracing Act, which was amended as it pertains to the Internet in 2000. That gives states the right to enact legislation allowing Internet or phone betting.
“It makes more sense to develop a strict regulatory structure in the U.S. and let our gaming companies lead the world and individual states preserve and protect revenues,” Catania argued. “The United Kingdom is now preparing to revamp its gaming laws, by 2005, (it) would bring all gaming, including sports betting, under one regulatory agency and include licensing and regulating Internet gaming. U.K. gaming officials have publicly stated they would not preclude their licensees from taking bets from the U.S,” he warned.
The question now is whether the casino industry will be allowed to follow suit before foreign competition takes control.
Lawrence G. Walters, Esq., is a partner in the national law firm of Weston Garrou & DeWitt, with offices in Orlando, Los Angeles, and San Diego. Mr. Walters represents clients involved in all aspects of online gaming operations. Nothing in this article constitutes legal advice. Please contact your personal attorney with specific legal questions. Mr. Walters can be reached at [email protected], through his website: http://www.GameAttorneys.com, or via AOL Screen Name: “Webattorney.”
With safeguards, Internet gambling should move forward
by Jeffrey Silva
Sept. 21, 2004 1:34 PM ESTWASHINGTON—Internet gambling—wireline and wireless—should be regulated and legal, according to speakers at a forum here Monday.
That link does not work for me. Please re-post. Thanks
It’s probably outdated.. It’s a news article.
That link doesn’t work for me anymore, either.
Here’s a different link to the same article:
http://www.responsiblegambling.org/staffsearch/e-library_most_recent_details.cfm?intID=6795
