By Rich Miller, Exec. Dir.
The debate surrounding internet gambling is gaining volume again and this time the various sides are a little more obvious.
The U.S. House of Representatives recently passed a ban on the use of credit cards and other financial instruments for placing bets at on-line gambling sites by a vote of 317-93.
The winning debate focused on age verification, credit gambling and problem gambling. The bill, which now goes to the Senate, also contains language allowing states to make the activity legal. Note: Nevada has already passed such legislation although the state gambling commission has not yet licensed any operation.
The American Gaming Association recently called for Congress to begin studying legalizing and taxing internet gambling. They believe the U.S. position is nearly unenforceable given the large number of other countries that permit and license internet operators and that adequate regulation and safeguards will do more to protect the public than anything else.
The U.S. Department of Justice recently indicted and arrested a British national for failing to report huge profits from, and pay taxes on, sports bets originating in the U.S. While this case only relates to sports betting, which is clearly defined as illegal, it may only be the first case they make.
The DOJ has also recently questioned the approval of some Class II devices by the National Indian Gaming Commission. Justice contends they are slot machines and as such are transported in violation of the Johnson Act. They have been talking with Congress about clarification after the Supreme Court turned them down.
The State of Washington recently made playing poker on the internet a Class C felony. Characterizing the change as a "clarification,' Washington officials have said they have no plans to enforce the law against the players but will pursue operators of gambling sites. That said, this is the first law to specifically target the on-line player.
While most people believe the policy and solutions must come from the federal government, Washington joins a growing list of states that seem to think now is the time to begin taking steps to strengthen state enforcement authority.
Montana is on that list. Its law, focused on the operator rather than the player, was recently amended to clarify and tightened the original prohibition language. Those amendments came from Gaming Advisory Council and were supported by Gambling Control and the business groups.
Holding the trump card in all this is the U.S. Senate and bets are good that they aren't going to play it before the November elections. But look for the debate to resume with the new term in January.
I wouldn't be so bold as to predict the outcome, but look for more debate and more regulations, whoever wins.
Source: The Montana Tavern Times, August, 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.