WASHINGTON – Lawmakers racing to complete action in Congress for this year are set to decide possibly today whether to grant a wish by billionaire casino owner Sheldon Adelson to restore a ban on Internet gambling.
Leaders were scheduled to unveil a major spending bill to keep the government running through next September. Along with the necessary funding, they were negotiating possible riders affecting government actions on pensions, insurance, the environment — and online gaming.
Five sources on Capitol Hill and in the gaming industry said today they had knowledge that House Speaker John Boehner, R-Ohio, has turned thumbs down on provisions sought by Adelson to reinstate a policy making it illegal to gamble using Internet technology.
But several other sources said it appeared the issue remains unresolved. Some cautioned anything still could happen during the hectic final days of the post-election lame duck session that could be completed by the end of the week.
Senior Republican aides said the text of the bill may not be released today as anticipated, with issues involving anti-terrorism insurance, multi-employer pension plans and environmental programs still unresolved, according to Congressional Quarterly
Spokesmen for Boehner and for Adelson had no immediate confirmation or denial on decisions affecting Internet gambling. The office for Rep. Jason Chaffetz, R-Utah, who sponsored Adelson’s bill, did not respond to a query.
While the chairmen of the House and Senate appropriations committees negotiated the spending levels in the bill, Boehner and Senate Majority Leader Harry Reid, D-Nev., personally handled the policy riders, sources said. Reid also did not comment on Monday.
If Congress punts on Internet gaming, the decision would be a blow to Adelson, who said he was “willing to spend whatever it takes” to defeat gambling on the Internet. Adelson, who has given more than $100 million to Republicans and Republican causes, argued that gambling online is unacceptable from a moral standpoint and a bad business path for the casino industry.
At the same time, it would be a reprieve for Caesars Entertainment, MGM Resorts International and casino companies that up to this year were looking to clarify and expand the legality of Web gaming following a December 2011 Justice Department opinion that federal law on electronic transmission of wagers only applies to sports gambling.
Instead, when Adelson got involved, companies that were looking to expand Web gaming were put on the defensive.
New Jersey and Delaware are the only states that have legalized online gambling. Nevada has legalized only online poker. But other states are considering legalizing poker and other games.
Adelson’s bid for federal prohibition faced a backlash from a group of House conservatives, and conservative-leaning interest groups, who said a government ban on Internet gambling would violate state rights to decide for themselves whether to allow their residents to play poker and other games online.
A scheduled House Judiciary Committee hearing on Internet gambling that would have served as a launching pad for Adelson legislation was scrapped as opposition began to emerge. Lobbyists for Adelson continued to meet with aides to Boehner, and also with Reid, in a bid to get something passed in the final days of the session.
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