Internet Gambling Prohibition Bill Faces Uphill Battle in Senate

Following its decisive passage in the House of Representatives, the Internet Gambling Prohibition Act (HR 4411) now faces a challenging path through the U.S. Senate. Industry observers are questioning the bill's prospects, recognizing the inherent unpredictability of the legislative process despite current hurdles appearing substantial.

Legislative Clock Ticking

A primary obstacle for HR 4411 is the tight legislative timeline. Senate Majority Leader Bill Frist has tentatively set October 6, 2006, as the adjournment date for the year, leaving less than three months for the bill to clear the Senate. This compressed schedule is further complicated by a packed legislative agenda, with critical issues like border security, immigration, labor, health and human services, appropriations, and stem cell research all likely to take precedence over online gambling prohibition.

Senator Kyl's Divided Attention

Senator Jon Kyl of Arizona, a vocal advocate for online gambling prohibition, would be instrumental in pushing HR 4411 in the Senate. However, Kyl is one of 33 senators seeking re-election this year. While recent polls, including a June survey by Angus Reid, suggest he holds a lead in his race (43% to Democratic challenger Jim Pederson's 29%, though from a small sample size of 384), his campaign demands significant attention. Furthermore, as a representative of a border state, Kyl is a leading voice in the ongoing and contentious debate over immigration, an issue also prominent in his re-election contest. This dual focus on his campaign and other high-priority legislative matters could dilute his efforts on the gambling prohibition bill, despite his decade-long commitment to the cause. Kyl has previously attempted to attach similar legislation as amendments to other bills, including an appropriations bill in September 2005 and a lobbying reform bill in March 2006, but these efforts were unsuccessful.

Democratic Resistance Led by Reid

While HR 4411 passed the House with strong bipartisan support, 317-93, its reception in the Senate may be more contentious, potentially aligning more closely with party lines. Senate Democratic Leader Harry Reid of Nevada, a former state gaming commissioner, has voiced reservations regarding the feasibility of prohibiting internet gambling. His influence is anticipated to rally Democratic opposition against HR 4411.

Industry Groups Weigh In

The position of the American Gaming Association (AGA), representing the commercial land-based casino sector, has evolved. In April, the association shifted its stance to advocate for a one-year congressional study commission to assess the impacts of online gambling. Despite this, AGA President and CEO Frank Fahrenkopf, Jr., clarified that the association would not oppose House prohibition bills. He stated, “We’re not opposing Leach because the important thing you have to remember is that the legislation that is there now is aimed at illegal Internet activity.” Fahrenkopf also emphasized that even if online gambling became legal domestically, the AGA would oppose unregulated offshore operations, suggesting that measures like Leach's bill might be crucial for prevention, thereby necessitating a study commission. However, while not opposing the bill, the powerful lobbying group is not expected to actively support it.

Other interest groups may also mobilize against the bill in the Senate. The banking industry, which offered minimal resistance in the House, might reserve its resources for the Senate debate. Industry spokespersons have indicated that HR 4411 would impose significant burdens on U.S. financial institutions, effectively compelling them to act as policing agents. Similarly, Internet service providers are also expected to oppose the legislation due to the monitoring demands it would place upon them.

The Republican Party's Stance

Despite potential widespread opposition and procedural hurdles, the Republican Party's dominance in the Senate, mirroring that in the House, remains a critical factor. Internet gambling prohibition is a key component of the Republican platform, seen as an effort to address corruption in American politics, particularly in light of the Jack Abramoff scandal. Should HR 4411 come to a vote and align along party lines, a majority of Republican votes in its favor could be anticipated.