Nevada gambles on Internet gaming
June 5, 2001 Posted: 2:35 PM EDT (1835 GMT)
Nevada Senator Terry Care opposes state's Internet gambling bill
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By Richard Stenger
CNN
(CNN) -- Lawmakers have passed legislation that could make Nevada the first U.S. state with Internet gambling, which now generates more than $1 billion annually for mostly offshore gaming companies.
But the odds could be stacked against online gambling from becoming a reality in the state anytime soon, say gaming experts.
The federal government has been reluctant to legalize online gambling. State legislators say court challenges could change Washington's position.
Industry observers say Internet gambling generated $1.5 billion in revenue last year. That figure, they say, could quadruple in three years. Offshore companies oversee most of the business currently, because of the prohibition in the United States.
The bill has moved to Nevada Gov. Kenny Guinn for his signature after the legislature adopted the measure, which describes a plan to regulate online gaming. The final legislative branch hurdle was jumped Monday, when the state senate approved the measure by 17 to 4 votes.
A similar initiative died earlier in the senate. The newly approved version was added to another bill that passed in the final hours of the legislative session, according to the Associated Press.
"If people gamble from their homes, it will be like trying to ride a horse with no halter."
? Lem Banker, professional sports bettor
The U.S. Congress has debated the complex issue of online gambling, and a U.S. federal district court has ruled that the 1961 federal wire act does not prohibit Internet-based gambling.
The bill calls on Nevada's state gaming control board and state gaming commission to draft and approve regulations before online gaming begins in the state. It also includes provisions to block minors from participating. People outside Nevada or in states that prohibit gambling might also be excluded.
Iffy odds
But observers say don't bet that online gaming will be a sure winner. In fact, it may never happen at all. The U.S. Justice Department considers online gambling an illegal activity, although a federal district court has ruled that a 1961 law doesn't prohibit the activity. The issue is unsettled in Congress.
"There are still a lot of questions," says Keith Copher, chief of enforcement for the Nevada Gaming Control Board. "The state is not going to have Internet gambling by any stretch for a while. There's still vague federal laws out there that have to be defined."
The bill calls for a $500,000, two-year licensing fee for Internet gambling. Opponents say the high price would prevent small casinos from taking part. Supporters say the charge would make sure that only reputable business participate.
Merle Berman, a Republican lawmaker from Las Vegas and a primary backer of the bill, says online gaming taxes and fees could generate more than $80 million annually for the state, according to Reuters.
But critics say they wonder if the human costs might be too high.
Lem Banker, a longtime professional sports bettor in Las Vegas, says he thinks people gambling on the Internet will have less ability to control themselves than those wagering in casinos.
"I think they should localize gambling like they have here," he says. "If people gamble from their homes, it will be like trying to ride a horse with no halter."
New Jersey tried to move into the Internet gambling scene earlier this year. But a bill that would have given casinos the right to provide selected gambling games on the Web is expected to remain bogged down in committee until the legislature recesses for the summer.
June 5, 2001 Posted: 2:35 PM EDT (1835 GMT)
Nevada Senator Terry Care opposes state's Internet gambling bill
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
By Richard Stenger
CNN
(CNN) -- Lawmakers have passed legislation that could make Nevada the first U.S. state with Internet gambling, which now generates more than $1 billion annually for mostly offshore gaming companies.
But the odds could be stacked against online gambling from becoming a reality in the state anytime soon, say gaming experts.
The federal government has been reluctant to legalize online gambling. State legislators say court challenges could change Washington's position.
Industry observers say Internet gambling generated $1.5 billion in revenue last year. That figure, they say, could quadruple in three years. Offshore companies oversee most of the business currently, because of the prohibition in the United States.
The bill has moved to Nevada Gov. Kenny Guinn for his signature after the legislature adopted the measure, which describes a plan to regulate online gaming. The final legislative branch hurdle was jumped Monday, when the state senate approved the measure by 17 to 4 votes.
A similar initiative died earlier in the senate. The newly approved version was added to another bill that passed in the final hours of the legislative session, according to the Associated Press.
"If people gamble from their homes, it will be like trying to ride a horse with no halter."
? Lem Banker, professional sports bettor
The U.S. Congress has debated the complex issue of online gambling, and a U.S. federal district court has ruled that the 1961 federal wire act does not prohibit Internet-based gambling.
The bill calls on Nevada's state gaming control board and state gaming commission to draft and approve regulations before online gaming begins in the state. It also includes provisions to block minors from participating. People outside Nevada or in states that prohibit gambling might also be excluded.
Iffy odds
But observers say don't bet that online gaming will be a sure winner. In fact, it may never happen at all. The U.S. Justice Department considers online gambling an illegal activity, although a federal district court has ruled that a 1961 law doesn't prohibit the activity. The issue is unsettled in Congress.
"There are still a lot of questions," says Keith Copher, chief of enforcement for the Nevada Gaming Control Board. "The state is not going to have Internet gambling by any stretch for a while. There's still vague federal laws out there that have to be defined."
The bill calls for a $500,000, two-year licensing fee for Internet gambling. Opponents say the high price would prevent small casinos from taking part. Supporters say the charge would make sure that only reputable business participate.
Merle Berman, a Republican lawmaker from Las Vegas and a primary backer of the bill, says online gaming taxes and fees could generate more than $80 million annually for the state, according to Reuters.
But critics say they wonder if the human costs might be too high.
Lem Banker, a longtime professional sports bettor in Las Vegas, says he thinks people gambling on the Internet will have less ability to control themselves than those wagering in casinos.
"I think they should localize gambling like they have here," he says. "If people gamble from their homes, it will be like trying to ride a horse with no halter."
New Jersey tried to move into the Internet gambling scene earlier this year. But a bill that would have given casinos the right to provide selected gambling games on the Web is expected to remain bogged down in committee until the legislature recesses for the summer.
