Nevada legislation unveiled to study online gaming

The fight to legalize Internet gaming in the United States received a boost this week when two Nevada lawmakers introduced bipartisan legislation calling for an independent study on questions relating to online wagering.

The study will be conducted by the National Academy of Sciences and will be the basis for a report to lawmakers involving online betting. It will examine laws in other countries, advances in technology such as tools that prevent underage bettors, and the impact of the current federal online gambling ban in the U.S.

Sponsoring this legislation are Nevada congresswoman Shelley Berkley, a Democrat, and fellow congressman Jon Porter, a Republican. In a recent interview with Covers.com, American Gaming Association President Frank Fahrenkopf Jr. said commissioning a federal study is the right way to go.

“The AGA commends Reps. Shelley Berkley and Jon Porter for introducing legislation to study Internet gambling,” Fahrenkopf said. “Their bill, directing the National Research Council of the National Academy of Sciences to provide a comprehensive review of the issue, is in line with our board’s position on Internet gambling and is a responsible step in the right direction.”

Berkley and Porter’s Internet Gambling Study Act calls for the Council to conduct a comprehensive study of Internet gambling, including the existing legal framework that governs such activities and transactions and the impact of the current Unlawful Internet Gambling Enforcement Act.

When the study is completed it will be submitted to the President, Congress, State Governors and Native American tribal governments. It’s estimated the study could take 12-18 months.

“Whether or not they approve of online gambling, there is no reason for Members of Congress not to support an independent study on this issue,” Berkley said. “Once this year-long examination is complete, Congress can look to its findings for answers about the question of regulation and ways to address issues of concern, such as technology to prevent underage gambling.

“I have always said that individuals must be free to choose whether or not they want to gamble, be it on the Las Vegas Strip or online. But I also recognize that Congress needs clear guidance on how to deal with this issue when it comes to the Internet. This study will provide us with that blueprint.

“As Congress moves to address online gaming in the future this study will give us the facts and the tools we need to make important choices.”

Some topics covered by the study will include:

- A review of existing federal, state, tribal, local and international laws governing various forms of wagering over the Internet.

- An assessment of the proliferation of Internet gambling, including an analysis of its availability and use within the U.S.

- A determination of the impact of Internet gambling on minors and compulsive gamblers and the availability of regulatory and technological safeguards to prevent or mitigate these impacts.

- An assessment of the Unlawful Internet Gambling Enforcement Act.

- An assessment of the problems posed by unregulated international Internet gambling to U.S. interests and the potential means by which the government may seek international cooperation in addressing these concerns.

- An analysis of the potential impact of recent World Trade Organization rulings regarding Internet gambling and the long-term impact on existing and future U.S. trade agreements under the General Agreement on Trade and Services.

- An analysis of the potential tax revenue that could be generated by a legal, licensed, regulated Internet gambling industry in the U.S.

“Now, more than ever, Congress needs a better understanding of Internet gambling before we make additional decisions about its future,” Porter said. “Technology continues to become more sophisticated in its ability to regulate online activity. By calling on the National Academy of Sciences to study the issue, we’ll ensure Congress has all of the facts before considering any next steps.”