Internet gambling bill faces challenges

By Carlos Medina-Wire to Wire

Interstate betting on horseracing could face a challenge as the Internet Gambling Prohibition Act could come up for consideration by the U.S. House Judiciary Committee as early as next week.

While the proposed bill, sponsored by Rep. Bob Goodlatte (R-VA), excludes restrictions for wagering over the internet on horseracing, some, including the U.S. Department of Justice, would like to see that exclusion removed.

The American Horse Council, which represents the horse industry in Washington, D.C., supports the bill in its current state, but cautions the racing exclusion will face strong debate.

“We want people to contact their members of congress in Florida and ask them to oppose any amendment to change the racing language,” said Jay Hickey, AHC president.

Supporters of the exclusion argue the Interstate Horseracing Act, which was amended to allow interstate wagering, protects horseracing. The Department of Justice, however, contends that the IHA did not amend the Wire Act, which does not allow wagering over telephone lines. The Wire Act, however, does not address the internet.

“We have had success in working with our legislators in Congress in the past and we hope to continue that success as we try to protect interstate wagering on racing,” said Richard Hancock, executive vice president of the Florida Thoroughbred Breeders’ and Owners’ Association.

About 85% of the pari-mutuel industry’s revenue comes from interstate simulcasts, including wagering over the internet or at off track betting locations.