U.S. Senate Unlikely To Pass Anti-Gambling Law This Year

 
Internet industry trade groups -- and senior lawmakers on Capitol Hill -- are raising objections to a proposal to ban Internet gambling, experts said.
 
"With everything else going on in the world at present, and apparently more important or pressing matters on the Senate's agenda before the current session adjourns, I doo't believe that the Senate will have the time to take up the House anti-Internet gaming legislation that was passed a couple of weeks ago," said Greg Giordano, a partner at the Las Vegas law firm of Snell & Willmer, in an exclusive interview.
 

Bill on Hold

 
Lobbyists working on behalf of casino owners and horse- and dog-racing interests have convinced some Republican senators to place an anonymous"hold" on the bill, invoking an old Senate privilege.

Experts noted that the gaming industry is a major contributor to an array of congressional campaigns, and Senators such as as Republicans Jim Bunning and Mitch McConell of Kentucky or Democrat Harry Reid of Nevada are big supporters of gaming.

The bill, as passed by the House, would halt most forms of Internet gambling and make it illegal for banks and credit card companies in the U.S. to make payments to online gambling sites.

Some say that the law is needed, however, to clarify that a 1961 federal law banning interstate telephone betting, which has been used against the online gaming industry.

Arizona Republican Sen. Jon Kyl, who supports the bill, has been trying to build backing and resolve conflicts as the Senate concentrates on other legislative matters and is poised for its summer break.

Summer Break

Though the Senate is not likely to pass a new law this year, the recent arrest of David Carruthers, chief executive officer of BetOnSports.com, has had an impact, albiet symbolic, thus far,  on the industry, according to Giordano, the Las Vegas lawyer.

"The impact has been immediate," said Giordano. "First, an Internet gaming conference scheduled to be held in Las Vegas this week was abruptly cancelled by the sponsor due to the understandable wariness of various conference participants and Internet gaming executives of traveling to the United States and Las Vegas from throughout the world."

What is more, Carruthers' legal woes, and those of BetOnSports PLC, had an "immediate negative effect" on the company's stock price, and the stock prices of other gaming firms, traded on the London bourse. "Masssive sell-offs were triggered by that news," said Giordano.

But, there has been positive news too for gaming, even amidst the seeming troubles. PartyGaming PLC just announced that it was "stepping up its expansion" outside of the U.S., targeting customers in Europe, South America, and Asia, said Giordano.

In the long-run, the impact of the arrest of Carruthers may well be determined by a settlement of the case, short of trial, said Giordano.  If there is no trial, the industry will view the problems as less severe for its future. But a trial could be troublesome, and lead to more legal woes, he said.


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