2003 Cal-bred News

Internet Wagering Bill Pending

WASHINGTON, D.C. (June 5, 2003) -- The House is scheduled to vote on the Unlawful Internet Gambling Funding Prohibition Act (H.R. 2143) soon. The horse racing and breeding industry supports this bill in its present form. The current bill distinguishes between unlawful, off-shore Internet wagering and state-licensed and state-regulated wagering. This distinction is important to the pari-mutuel racing industry.

Proponents of the Unlawful Internet Gambling Funding Prohibition Act (H.R. 2143) tried several times this week to bring the bill before the House of Representatives for a vote. The horse racing and breeding industry supports this bill in its present form because it distinguishes between unlawful, off-shore Internet wagering and state-licensed and state-regulated wagering. This distinction is important to the pari-mutuel racing industry.

First, the bill was scheduled for consideration on June 3 under a procedure called “Suspension of the Rules.” This is generally the way that non-controversial bills are considered even though it requires a two-thirds vote for passage. Unfortunately, opponents raised substantive and procedural objections and the bill was removed from the Suspension Calendar.

Then the bill was to be considered on June 5 under “regular order,” which requires the House Rules Committee to issue a rule designating the parameters for debate and what amendments might be in order for consideration.

But the Rules Committee did not meet on the bill so no rule was adopted and the bill could not be considered. In addition, the proponents of the bill were concerned that some amendments expected to be offered might pass, resulting in various interest groups changing their position on the legislation. For example, it is expected that Congressmen Jim Sensenbrenner (R-WI), Chris Cannon (R-UT) and John Conyers (D-MI) will attempt to delete the language in the bill that excludes from the definition of a bet or wager “any lawful transaction with a business licensed or authorized by a State.” This provision is important to the racing industry and necessary for its continued support.

Finally, this is a controversial bill and there was a general overall confusion surrounding this bill, even greater than is usual with legislation.

Nonetheless, proponents are still pushing to have the bill on the House floor next week.

For the most recent update from the American Horse Council and a draft letter to send to legislators, click here.