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Digital Society


Future of Web Gambling Ban Unclear


Another attack on freedom and attempt to legislate morality.

WASHINGTON –– Two key Republican lawmakers say a House bill to outlaw online
casinos will not inadvertently expand other gambling on the Internet, but
their assurances may not be enough to gain passage.

Skeptics maintain the legislation would help some gambling interests reach
bettors through home computers, particularly horse racing. Those critics,
plus others who say the bill would unfairly restrict state lotteries and
unwisely regulate the Internet, could scuttle a movement that appeared to be
gaining momentum when the Senate approved an Internet gambling bill last
year.

The House bill is designed to stop the growth of Web sites that allow people
to wager money on casino games through their home computer, regardless of
whether casinos are legal in their state. A vote could come early next week.

Lobbyists for pari-mutuel betting – wagers placed on horse racing, dog racing
and jai alai – argued successfully for an exemption to permit existing
interstate activities like simulcasting. The Justice Department opposed the
exemptions.

"Simply stated, the department does not understand why the pari-mutuel
wagering industry should be allowed to accept bets from people in their
homes, when other forms of gambling have rightly been prohibited from doing
so," Deputy Assistant Attorney General Kevin DiGregory told a House
committee.

Rep. Chris Cannon, R-Utah, called the bill "a well-meaning attempt to
regulate a pernicious vice (that) will actually allow gambling into America's
homes."

Attempting to stem the criticism, two Republican congressmen this week agreed
on additional language to specify the bill is not intended to permit
activities that now are illegal.

Reps. Bob Goodlatte of Virginia, sponsor of the legislation, and Billy Tauzin
of Louisiana, chairman of the House Commerce subcommittee on
telecommunications, hope their agreement clears the way for passage.

"This compromise is a huge step toward preventing runaway gambling on the
Internet," said Tauzin, who got involved after a Commerce Committee hearing
in June exposed concerns about the bill.

Tauzin's spokesman, Ken Johnson, said the compromise seeks to avoid the
controversy over the use of the Internet for betting on horse races. "There
are growing indications that this dispute may end up in court," he said, "and
we're not going to pick the winners and losers."

The River City Group, a consulting group for the online gambling industry,
said in a recent report that gambling is offered by nearly 700 Internet
sites. The report projected Internet gambling will grow from $1.1 billion in
1999 to $3 billion in 2002.

Most agree Internet gambling as commonly practiced is already illegal under
the 1961 Wire Communications Act, which was written to cover sports betting
over the telephone. They say the new bill is necessary to leave no doubt that
Internet gambling remains illegal even when computers communicate by
something other than phone lines.

The bill prohibits anyone who runs a gambling business to place or receive a
wager online. Enforcement would be challenging, however, because most
Internet gambling outlets are located outside the United States.

Some critics are loath to see any government regulation of the Internet,
while others are unhappy that an exemption allowing sales of state lottery
tickets over the Internet was removed by the House Judiciary Committee.

The bills are S. 692 and H.R. 3125.
Associated Press, July 13, 2000
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