Internet Wagering Bill Narrowly Advances

WASHINGTON, D.C. (May 15, 2003) -- The Unlawful Internet Gambling Funding Prohibition Act (H.R. 21) (the Oxley-Leach bill) was considered by the House Judiciary Committee Wednesday and reported out on a 16-15 vote.

The Committee removed the racing-supported provision in the bill that excluded from the prohibitions “any lawful transaction with a business licensed or authorized by a state.” That provision was removed pursuant to an amendment offered by Congressman Chris Cannon (R-UT).

The amended bill prohibits the use of credit in connection with unlawful Internet wagering, making a distinction with “lawful” wagering. But the additional protection provided by the exclusion of “lawful transactions” with a business “licensed or authorized by a state” was important. The industry had supported that provision strongly as a Congressional statement that the bill did not apply to the activities of the racing industry approved under federal and state law.

The next step in the legislative process for this bill is the House Rules Committee. The original Oxley-Leach bill has already been reported out of the House Financial Services Committee with both protections supported by the racing industry. Thus, there are now two Internet bills that could be considered by the House of Representatives. The procedure of such consideration will have to be worked out by the House Rules Committee.

Copyright © 1998-2003 California Thoroughbred Breeders Association