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NACS continues to fight in the opposition of online lottery ticket sales and sources indicate that legislation will be amended prior to the consideration of any new online gambling laws
 
Article Published by NACS Online, 8/11/2010 www.nacsonline.com
 
WASHINGTON, D.C.– A bill currently before the House would create federal supervision for online gambling sites, the Lottery Post reports. House Financial Services Committee Chairman Barney Frank (D-MA) sponsored HR 2267, which passed his committee two weeks ago.
 
The House will probably vote on the legislation before the end of this year’s session. If the bill does advance that far, it will be the farthest an online gambling law has gotten on the federal level.
 
“The good news is this is significant progress,” said Michael Waxman of the Safe and Secure Internet Gambling Initiative. “Last week’s vote showed the bi-partisan support is there.”
 
Part of the allure of HR 2267 is the potentially huge revenue stream such a law would bring to all levels of government. An analysis by the Congressional Joint Committee of Taxations found that regulated Internet gambling could bring in $42 billion over the first decade of the bill’s realization at the federal level. States could see a 6 percent deposit fee generate an additional $30 billion.
 
“Those figures assume you are starting with an industry where millions of players are already engaged,” pointed out Waxman. “And with regulation, there is an expectation that many more will take up and enjoy this form of recreation. There is a strong possibility that this bill would be included in a larger legislative package as a way to offset the cost of other programs.”
 
HR 2267 would make sites apply for a federal license, but the bill does not have caps on how many licenses. Regulations would require sites to have safety measures against identity theft, compulsive gambling behavior and access to minors. Most of the online gamers are poker players, but the measure does not only target poker. The bill also includes online casino games, such as slots, table games and blackjack. However, online sports betting is excluded.
 
NACS advocated against the legislation, which it believes will authorize the sale of state lotteries over the Internet. Sources have indicated to NACS that the legislation will be amended prior to further consideration to ensure that such authorization is not included in the bill. NACS will be monitoring developments closely.