Harry Reid’s Battle for Online Gambling Legislation
Senate Majority Leader Harry Reid is pushing behind the scenes for lame duck sessions that would regulate poker games over the internet but limit initial licenses to online casino sites and racetrack operators that would have been in a business for at least five years. Some of the biggest operators in Reids home state of Nevada are eager to get a place in the online gambling industry, which produce more or less $5 billion a year for offshore operators.
A congressional adjutant familiar with the issue said Reid adjutants were circulating the draft legislation. The adjutant was not auithorized to speak publicly about the matter and did so speak so only on condition of anonymity.
About four years ago, Congress efficiently banned online casino gambling, passing legislation that ban banks and credit card companies from making payments to gambling websites. Advocates of online poker face decrease opposition with Democrats in charge of both chambers for another month. This year, the house financial services committee approved a bill that established a regulatory structure for online gambling.
Reid’s office had no comments about the legislation. However, sensing that supporters are in hurry to lift the ban, three leading republicans in the house wrote to Reid and Senate Minority Leader Mitch McConnell, R-Ky., this week saying they resist any attempt to legalize online gambling during the current lame duck session. Using online gambling as a source of revenues for the federal government would mean social and economic harm to many families, they said.
Republican representative Spencer Bachus of Alabama, Dave Camp of Michigan and Lamar Smith of Texas said in their letter that the Congress should not take advantage of the young, weak and vulnerable in the name of the new revenues to cover more government spending. Bachus is next in line to become the Chairman of the Financial Services Committee by next month, Camp will take over the ways and Smith is expected to be soon the head of Judiciary committee. The three committees have jurisdiction over the online casino gambling matters.
Most of the law makers work on this year concerning online casino gambling has taken place in the house wherein supporters say that prohibition didn’t work with alcohol and it’s not working with online gambling. People would still continue to participate but in an underground and unregulated market.
Rep. Barney Frank, D – Mass, the current Financial Services Chairman said at the hearing this year that “We are not talking about an activity that harms others where we properly step in. We are talking about a decision by adults to do what they want with their own money.”
Under the draft legislation circulated to different Senate offices, state and Indian tribes would oversee regulation of the online poker licenses – holders.
