New Kyl plan would ban online gambling without exception for racing
A proposal from the office United States Senator Jon Kyl (R-Arizona) would bar online gambling without an exception for the racing industry.
Like previous failed bills supported by Kyl, the bill would bar credit card companies, banks, and other financial institutions from accepting transactions related to online gambling. Unlike the previous bills, the proposal does not include an exception for pari-mutuel wagering.
Kyl’s proposal, titled The Unlawful Internet Gambling Enforcement Act of 2005," was prompted by a recent ruling of an appellate body of the World Trade Organization on a dispute between the United States and Antiqua. The WTO ruled in April that the United States must clarify its gambling restrictions on Internet wagering on horse racing under the Interstate Horse Racing Act in order to honor its trade agreements.
Greg Avioli, vice president of the National Thoroughbred Racing Association, said he expects the racing industry to receive protection in any legislation.
"Account wagering is the fastest-growing part of the business by a significant margin," Avioli told MarketWatch. "We are paying very close attention to the bill. But we are confident that Mr. Kyl and other members of the Senate do not want to interfere with legal pari-mutuel betting [and that] whatever legislation passes will adequately protect racing."
Anthony Chabot, an attorney with Lewis and Roca in Las Vegas, said Kyl’s bill is the most likely vehicle for addressing the WTO ruling.
"It can effectively shut down any interstate betting that would go through a financial transaction service provider," Chabot told MarketWatch. "And the horse-racing industry has been increasingly reliant on interstate wagers for its viability."
