The Senate Judiciary Committee, voting in an unusual closed session, today approved by voice vote a bill banning Internet gambling.
The reported version of SB474, sponsored by Senator Jon Kyl (R-Arizona), carries a new provision that is likely to draw howls of outrage from state-rights advocates. The panel approved an amendment from Senator Jeff Sessions (R-Alabama) that will make Internet wagering a federal crime even if the states in which bets are placed have legalized the practice.
The provision is also likely to raise alarm among horse-racing and lottery interests which now carry on interstate betting - for instance, by television link.
The revised legislation, which would target both bettors and gaming operators, removes Internet service providers from the enforcement process. ISPs are no longer required to take action against bettors or gaming operations on their servers. And action against online betting - which before could be initiated by local police departments - must now be launched by federal prosecutors or state attorneys general.
Penalties for businesses that conduct Internet gaming are set at the higher of US$20,000 or the value of the bet placed. In addition to the monetary penalty, violators remain subject to a four-year maximum jail sentence.
Sue Scheider, chair of the Interactive Services Association's Interactive Gaming Council - one of the leaders of the industry's opposition to the bill - said Kyl is pressing for a floor vote on the legislation before Congress recesses early next month. Neither Kyl nor committee representative could be reached for comment.
