Thursday, March 13, 2003
Copyright © Las Vegas Review-Journal

Measure back proposing study on Web betting

Second plan calls to ban credit to pay online wagers

WASHINGTON -- A Michigan congressman reintroduced a bill Wednesday that would establish a federal commission to study the feasibility of regulating Internet gambling.

Meanwhile, a House panel plans to vote today on another bill that would ban the use of credit cards, wire transfers or any other bank instruments to pay for online wagers.

The two bills are expected to compete against each other to become the Internet gambling legislation approved by the House.

The bill unveiled Wednesday by Rep. John Conyers, D-Mich., would direct a federal commission to evaluate how online gambling can be regulated to protect consumers and provide tax revenue. Conyers originally proposed his bill just before Congress adjourned last year.

The Conyers' bill is being offered as an alternative to a bill by Rep. Jim Leach, R-Iowa, that aims to prohibit Internet gambling by outlawing conventional payment methods to offshore Web sites.

The House Financial Services Committee is expected to pass the Leach bill partly because of strong support from the committee chairman, Rep. Mike Oxley, R-Ohio.

The American Gaming Association, the casino industry's chief lobbying group, "remains unopposed to the Leach bill," association spokeswoman Naomi Greer said. The association hasn't taken a position on the Conyers' bill.

Reps. Shelley Berkley, D-Nev., and Chris Cannon, R-Utah, are co-sponsors of the Conyers' bill.

The House approved the Leach bill last year by voice vote, but the Senate did not act.

Leach reintroduced his bill Jan. 8, saying an Internet gambling ban would prevent criminals and terrorists from potentially using online wagering sites for money laundering.

Chances of a compromise between Conyers and Leach are remote, Leach spokeswoman Meghan McCabe said.

"Congressman Conyers does not like our bill. If he had his way, it would not be passed because it is not beneficial to his interests," McCabe said.

Conyers has charged Leach's measure would not prevent money laundering because the bill would eliminate financial evidence state regulators need to track Internet wagers.

Conyers has argued it would be better for states to exercise strict oversight of Internet gambling similar to state regulation of land based casinos.

Cannon decided to co-sponsor Conyers' bill because it would empower states like Utah to ban Internet gambling within their borders, Cannon spokeswoman Meghan Riding said.