California Steps Closer To Banning Net Gambling
By Brian Krebs, Newsbytes
WASHINGTON, D.C., U.S.A.,
16 Apr 2001, 5:36 PM CST
A California State Assembly committee today approved legislation to ban most forms of Internet gambling. The measure would fine online casinos that fail to weed out gamblers from California, and would make Web wagering a misdemeanor in the state.
The California Assembly's Government Operations Committee approved the legislation, offered by Dario Frommer, D-Los Angeles, in an 11-0 vote.. The bill now heads to the state Assembly's Public Safety Committee. It will also need to clear Appropriations Committee before heading to the Assembly floor.
Lawmakers amended the legislation to include a provision that would require authorities to issue a warning to Web gamblers on their first offense. Subsequent violations would carry a $100 fine. Online casinos that fail to block California gamers could be fined up to $1,000 per offense or up to 90 days in jail.
A committee staffer said the bill also contains language that could allow law enforcement officials to go after financial institutions that facilitate online gambling in California through account wagering or advanced deposit wagering.
The bill contains carve-outs for several forms of gambling already permitted in California, including closed-loop betting on so-called "parimutuel" games such as jai alai and horse racing.
A similar bill was offered last year by state Sen. Don Perata, D-Oakland. That bill died in session after state Justice Department officials raised concerns about enforcement costs.
The parimutuel exemptions also are prevalent in a federal bill to ban online gambling, offered by US Rep. Bob Goodlatte, R-Va. Many of the bill's carve-outs left a sour taste in Democrats' mouths. Democrats last year noted that the bill devoted more wiggle room to Exceptions to the rule than not.
In July, the House voted for the measure 245-159, but the bill fell far short of the two-thirds majority needed for passage under the suspension calendar.
That effort failed largely because it ran into opposition from Rules Committee Chairman David Dreier, R-Calif., who expressed objections to an apparent lack of liability protection for Internet service providers (ISP) that could be implicated for breaking the law even if they are not aware of illegal activity taking place over their networks.
Goodlatte has said he plans to reintroduce legislation to ban most forms of Internet gambling, but added that the new bill likely will differ in some ways from its predecessor. A spokesman for the congressman said the specific changes and an introduction date for the bill remain uncertain.
A similar bill was introduced by Sen. Jon Kyl, R-Ariz., which passed the Senate, but was axed from the appropriations process after it had been tentatively attached to a larger spending bill.
For a copy of the legislation as written prior to today's amendment, check out: leginfo.ca.gov
Reported by Newsbytes, newsbytes.com
17:36 CST
Reposted 17:49 CST
(20010416/WIRES TOP, ONLINE, LEGAL, BUSINESS/WWWGAMBLE/PHOTO) |
