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Quotable quotes on the anti-gambling House vote

Wed, 12 Jul 2006 , InfoPowa Send page to friend Bookmark page Smaller font Larger font Printer friendly

Not everyone was pleased with the rather rushed House vote on HR 4411 as part of the Republicans' "American Values Agenda" this week, and we collected a few quotable quotes from the vast volumes of media coverage on the event.

Representative Goodlatte "Online gambling is a scourge on [American] society.”

"We have been here before," ABN Amro analysts in a research note. "Leach's proposals passed a vote in Congress in 2002 and again in 2003 but never reached the Senate."

"The Republican leadership has made the bill a priority in American values' agenda, and hence it is likely that the bill will pass [in the House of Representatives]," Morgan Stanley analysts

"This week's debate might prove irrelevant as there are so few congressional days in which the bill could be heard before U.S. elections in November. Only about seven or eight weeks of Congress will be left for the merged House bill to negotiate the various Senate committees. In our view this is not enough time for the bill to progress, given the tight end-of-Congress legislation timetable in the Senate," said Richard Carter at Numis Securities.

"We continue to believe that full passage into law is very unlikely, and would look to buy PartyGaming and Sportingbet on any weakness," said Morgan Stanley.

"We believe that the bill will have a very difficult time getting through the Senate, given the constrained legislative calendar for the balance of 2006, as well as the partisan political climate in the Senate, which will only get worse as the elections approach. In the last Congress, a similar bill was received in the Senate in June of the first session of a two-year Congress and still never became law. We are currently in July of the second session. No bill has been introduced in the Senate; there has never been a Senate hearing on this topic, and it is not on the calendar of any Senate committee." Washington political analyst.

Representative Barney Frank, a Massachusetts Democrat, said the bill restricted individual rights. "What kind of social, cultural authoritarianism are we practicing here? The fundamental principle of the autonomy of the individual is at stake today.''

Representative Shelley Berkley, a Nevada Democrat, called Goodlatte a hypocrite because the bill wouldn't block online gambling on horseracing, which is legal under a separate U.S. statute governing the horseracing industry. "He made a deal with the horseracing industry to exempt them from this bill,'' Berkley said. "And why is that? Because if he didn't, they would fight this tooth and nail.''

House Speaker Dennis Hastert said: "We must be wary of illegal gambling sites that offer fronts to criminals for money laundering, drug trafficking and terrorist financing.

"Internet-based companies must abide by US regulations that protect our children, citizens and the integrity of American business. The Internet Gambling Prohibition and Enforcement Act will do just that. It seeks to protect our children from gambling sites at home, keep our hard-earned money in the bank, and put the criminals that seek to take advantage of our family earnings in jail."

Representative Bob Goodlatte said the bill could curb the booming industry of offshore websites accepting bets and wagers from persons in the United States. "Because these businesses are located offshore, they usually cannot be reached through state or federal law enforcement," Goodlatt said. "Easy access to Internet gambling websites and lack of law enforcement give the US public a misimpression that Internet gambling is not illegal."

Representative Barney Frank, a Massachusetts Democrat, who said the legislation is an "inappropriate attempt" by some in Congress to regulate what people do on the Internet. "In general, it seems to me, if people want to do it, we should let them,'' Frank said. "We are talking about criminalizing people's individual behavior because some of us disapprove of what they are doing.''

Representative John Conyers, an Illinois Democrat, offered an amendment that would strip all exemptions out of the bill. "This bill claims to ban all forms of online gambling, but it specifically exempts online betting on horseracing and state lotteries,'' Conyers said.

Reuters revealed that income taxes on winnings from Internet poker alone - which is estimated to have attracted $60 billion in wagers worldwide in 2005 - could amount to $2.5 billion each year.

Quoting Andrea Lafferty of the Traditional Values Coalition which supports banning: "If you're going to support legislation that is supposed to 'prohibit gambling,' you should not have carve-outs."

John Kindt, a business professor at the University of Illinois at Urbana-Champaign who claims to have studied the issue,"You just click the mouse and lose your house."

Antigua Finance Minister Errol Cort: "I'm very surprised and quite disappointed that the U.S. Congress would be pushing full-force ahead. We will be watching this matter very closely. The passage of those two [Goodlatte and Leach] bills will aggravate our trade relations regarding the U.S. with the WTO."

Greg Avioli, chief executive officer of the National Thoroughbred Racing Association, said the mention of horse racing in the bill is "a recognition of existing federal law," not a new carve-out. He said the racing industry has a strong future in the digital age and acknowledged the bill would send Internet gamblers to racing sites. "They'd return to the one place they can bet legally," Avioli said.

The Center for Responsive Politics calculated that a sizable part of the racing industry has contributed more than $3 million to lawmakers, presidential candidates and state and federal political action committees since 2000. Far more than half the total went to Republicans, the center said.

Kathryn Rexrode, a spokeswoman for Representative Robert W. Goodlatte, the Republican who is a co-sponsor of the merged bills, said the horse racing industry contributed when Mr. Goodlatte was not sponsoring such legislation, but when he was chairman of the Agriculture Committee.

Leach said that "we authorize nothing new for horse racing," because it is regulated under the Interstate Horseracing Act. Even fantasy sports games, he added, would be further restricted under the bill, with bans on betting on individual teams or players.

Leach pointed to the coalition of supporters for the bills, including churches that represent many denominations, like Christian fundamentalists, that tend to have a consensus on little else. "I just think the stars are in alignment, that Congress knows it has to deal with this issue," he said.

"Somehow we find ourselves in a situation where Congress has gotten in the business of cherry-picking types of gambling," grumbled Rep. Robert Wexler, who had earlier tried unsuccessfully to include exemptions for dog racing and jai alai.

The Democratic leader in the Senate, Senator Harry Reid, a former gambling commissioner in Nevada, "...has serious concerns about our ability to properly regulate Internet gaming," his spokesman, Jim Manley, wrote in an e-mail message

David O. Stewart, an analyst and a lawyer who produced a study of online gambling for the American Gaming Association, a client of his firm, paraphrased an adage used by the Supreme Court in a campaign finance case, saying: "Money, like water, will find its way. And I really think that applies to this. The money will find a way to get to the offshore sites."

One of the most pungent observations on the selective nature of the banning attempts came from a Sacramento online gaming lawyer and specialist who described the legislative position as "basically, a mess." Quoted in the Seattle press, Martin D. Owens said: "Here's the country that has Las Vegas, Atlantic City, riverboats up to Iowa and Indian gambling under every tree. Not to mention state lotteries. Now you're going to turn around and say Internet casinos are undermining the moral tone of the United States? It's just plain silly."

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