Comments (16) | Add a comment
Place your bets: Online gambling clears obstacle
Tools
STEPHENS WASHINGTON BUREAU
WASHINGTON -- Congress took a step on Wednesday to allow for legalized gambling over the Internet when a House panel approved a bill that would license companies to offer online poker and other casino games.
The legislation was approved by the Financial Services Committee by a 41-22 vote. Onlookers included lobbyists for the gaming industry, Indian tribes, poker interests and companies that operate gaming sites outside the United States.
All are eager to tap into the billions of dollars that Americans bet online each year, a lucrative pot that some say could be an important market for the gaming industry.
No Nevada lawmakers are on the committee, but they follow the legislation with interest on behalf of casinos weighing online visions and possible effects on their "brick and mortar" operations.
Rep. Shelley Berkley, D-Nev., said a number of casinos are concluding the future is online, and that expansion on the Internet will create jobs.
"I believe Internet gaming is the wave of the future," Berkley said. "I suspect that most of the (casino) industry will be involved in legal Internet gaming."
The committee's endorsement "was a very crucial step and we will move on from here," said Berkley, a bill cosponsor along with Rep. Dina Titus, D-Nev.
According to figures cited by the American Gaming Association, U.S. gamblers spent $5.9 billion online in 2008, a figure that some analysts say could grow to more than $24 billion in the next five years if the practice is legalized.
"The idea of licensing and regulating the industry obviously is winning the way and the old view of Congress to prohibit it is losing the way," said John Pappas, executive director of the Poker Players Alliance, an advocacy group promoting online legalization.
During a three-hour debate, supporters said taxes that would be levied on Internet gaming would generate welcome revenue for cash-strapped Uncle Sam.
"The best reason for this bill is the prospect for revenue," said Rep. Brad Sherman, D-Calif.
But for others, the government's embrace of online gambling was a sign of social disintegration, and another step by "big government" to sweep away what has traditionally been an area of state regulation.
Rep. Spencer Bachus, R-Ala., said it will not be possible to keep problem gamblers and minors from casting wagers online, a prediction that was dismissed by bill supporters.
"It strikes me as ironic that after all the talk of shutting down the casinos of Wall Street, we are talking about setting up casinos in every bedroom and dorm room and every computer in America," Bachus said.
But Rep. Barney Frank, the committee chairman and the leading proponent of legalization, said the bill was freedom-affirming. It would roll back a 4-year-old law that sought to block online gambling by forbidding banks to process payments to gaming sites.
"What we are doing is letting people in America make their own choices," Frank said. "I don't think it is the business of the United States government to tell people what they should be doing with their money."
Rep. Emanuel Cleaver, D-Mo., said if Internet gambling were on the ballot, "it would be approved by voters in every state of the union."
Despite the committee's endorsement, the path ahead for the controversial legislation is up in the air.
Frank said this week he believed the House will vote on it before the end of the year, and that he had spoken with Senate Majority Leader Harry Reid of Nevada and others about its prospects in the Senate.
But a Reid spokesman said there have not been any talks with the House on the bill "at this point in time."
"Sen. Reid would not allow any bill to move forward if it would hurt the hundreds of thousands of Nevadans employed by the gaming industry," spokesman Tom Brede said.
Some lobbyists envision a scenario where, if the bill does pass, it may do so in the final days of this year's session, possibly attached to other legislation. That was how Republicans in 2006 passed the restrictions that are in place.
Another possible scenario, lobbyists and some lawmakers say, is the legislation being narrowed to allow for online poker, the most popular game people play on the Internet. At the insistence of the National Football League, the legislation does not allow for sports gambling.
Contact Stephens Washington Bureau Chief Steve Tetreault at stetrault@stephens media.com or 202-783-1760.
Trending topics:
Comments
Terms & Conditions
The following comments are provided by readers and are the sole responsiblity of the authors. The Review-Journal does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please use the Report Abuse button.
Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 24 hours. Please do not submit a comment more than once.
Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.
RSS
Twitter
Facebook
Roger wrote: ""You need database administrators. You need programmers, analysts, computer security experts, support personnel, web interface ("portal") experts and so on." and these people are right here in LV?" Yes Roger, they are. Many institutions in Las Vegas have in-house skilled technological teams like that. Zappos in particular has a national reputation for excellence.
"Sen. Reid would not allow any bill to move forward if it would hurt the hundreds of thousands of Nevadans employed by the gaming industry"
But the MILLIONS of US residents that cant afford health insurance with, or without the threat of a $4000 fine, didnt cross his mind......... Thanks, Harry
All I hear from the Mississippi casino's are they don't make enough money off of the poker rooms so they close them to put slot machines in so who is actually losing jobs this could be a trade off.
I also hear of the Las Vegas casino's doing the same.
"You need database administrators. You need programmers, analysts, computer security experts, support personnel, web interface ("portal") experts and so on." and these people are right here in LV? I just question whether this is going to create or destroy jobs right here in our own backyard. We need jobs right here and right now. Casinos may benefit from an additional source of revenue but if that money goes towards new casinos in Macau does that benefit LV? Just trying to figure it out....
This law will benefit everyone. More tax money in the coffers of the US Treasury and create an interest to come to Las Vegas for the "real thing."
Good posts, vegaslee and Brent Mydland. Online gaming doesn't have to be the death of the casino. It can be a profit center for the casinos and a feeder to grow the customer base for the brick and mortar casinos. As for "why would they need people", computer systems don't run themselves. They just require different skill sets. You need infrastructure ("Basis") people. You need database administrators. You need programmers, analysts, computer security experts, support personnel, web interface ("portal") experts and so on. Casino gaming is becoming server-based as it is, and casinos will be building these computer teams anyway.
This is a slippery slope, kind of like the "self checks" at the grocery store. If they get enough people to use them, or any automated system, why would they need people(employees)?
Millions of people are already gaming on line. Millions more will do so. the big Vegas companies have been ready and waiting to launch their branded web sites when and if this becomes legal. People are going to gamble on line either way. Might as well make it legal and let state side casinos make money on it. Our government will also tax it. Just the way it is. Look at the up side for once. This will not hurt Vegas. People get a taste and they want the real thing. Look what it has done for poker. Millions play on line then end up in Vegas. The Internet has made the world series of poker bigger then they could have ever thought of.
You do realize that this is basically about online poker? Which will change nothing in Las Vegas.
Millions play online poker as it is. That doesn't stop the thousands of players that swarm the Las Vegas casinos during the World Series of Poker ever year.
"Rep. Shelley Berkley, D-Nev...expansion on the Internet will create jobs."....??? Really? What kind of jobs? Computer programming jobs in India or service based jobs in LV? Are people playing online going to need airline tickets to get to LV ? rental cars ? hotels ? dealers ? waiter/ress? This is going to be a serious blow to the brick-mortar casino, look at what ATM's did to the local bank?