Internet gambling bill passes Senate, still is pending in House

A long-debated bill aimed at restricting gambling on the Internet passed the Senate Friday, but Internet gambling foes still face a hurdle in the House.

The Senate bill, introduced by Sen. John Kyl, R-Ariz., would subject businesses that offer gambling on the Internet to fines and their owners to jail sentences. The bill's most ardent supporters included Nevada Democratic Sens. Richard Bryan and Harry Reid.

"Anyone who gambles on the Internet should see a psychiatrist," Reid said. "How in the world anyone could think they can guarantee a fair game on the Internet is beyond my ability to comprehend."

But before an Internet gambling ban can become law, a sister bill must first pass the House of Representatives.

That bill, introduced in October by Rep. Frank LoBiondo, R-N.J., and Rep. Bob Goodlatte, R-Va., passed a Judiciary Committee subcommittee earlier this month. The Judiciary Committee is expected to hold hearings on the bill in February, when Congress reconvenes.

Sue Schneider, chair of the Interactive Gaming Council, an industry trade and lobbying group, believes fundamental differences between the House and Senate bills could make it difficult for a single bill to emerge for the president's signature.

"It's a states' rights issue in the House," Schneider said. "They're trying to allow states to determine their own (path) in this. The Senate doesn't allow for any states' rights."

The Senate made several key compromises in the Kyl bill favoring the traditional gaming industry. The bill permits casinos and sports books to offer pari-mutuel sports betting networks, and allows state lotteries and fantasy sports leagues on the Internet.

Casinos will also be permitted to continue advertising on the Internet.

Under the Kyl bill, violators will be subject to fines of up to $20,000 and up to four years in prison. The bill would also require Internet service providers to shut down illegal sites.

According to recent studies by the Internet gaming industry, an estimated 1.4 million Americans have gambled online.

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