|
|
The National Thoroughbred Racing Association (NTRA) issued the following statement on the Internet Poker and Games of Skill Regulation, Protection and Enforcement Act (S.1597) that was introduced yesterday in the United States Senate by Senator Robert Menendez (D-NJ).
"The Menendez bill affirmatively supports our position that the Wire Act - a criminal statute aimed at illegal bookmaking - has no application to activities carried out in accordance with the Interstate Horseracing Act, a civil statute passed expressly to facilitate interstate pari-mutuel wagering on horseracing," said NTRA President and CEO Alex Waldrop. "This legislation reinforces the protections afforded our industry under the IHA."
"This bill was drafted with input from numerous stakeholder groups - including the NTRA - which will help bolster its chances for passage," Waldrop added. "The bill is limited to online poker, carries strong consumer protections, respects states' rights and ensures that domestic U.S. industries - including the horseracing industry - are allowed to participate fully and with equal opportunity in future Internet gaming markets. These elements will garner serious consideration for the bill."
Background
Senate Bill 1597 is similar to H.R. 2267, the Internet Gambling Regulation, Consumer Protection and Enforcement Act introduced in the House by House Financial Services Committee Chairman Barney Frank (D-MA) on May 6.
Both bills establish a regulatory, licensing and taxation framework under which other gaming interests may enter the market for online gambling; however, the Menendez bill would only legalize "games of skill" such as poker, and is more narrowly drafted than the Frank bill, which would legalize virtually any type of gaming.
Additionally, the Menendez bill contains several important provisions that were not in H.R. 2267:
- S. 1597 (Section 102, Subsection 5382 b3) expressly exempts online pari-mutuel wagering on horseracing as authorized under the IHA from the tax, licensing and regulatory requirements for entities that wish to enter the market for online gaming on a going-forward basis. The Frank bill makes no reference to online pari-mutuel wagering. The express exemption in the Menendez bill protects horseracing from being "double-taxed" and over-regulated.
- S. 1597 (Section 102, Subsection 5384) provides financial transaction providers a 'safe harbor' for processing wagers under the IHA.
- S. 1597 (Section 102, Subsection 5387) provides a definitive, affirmative 'safe harbor' from prosecution for wagering activities carried out under the provisions of the IHA.
- S. 1597 (Section 102, Subsection 5388) expressly states that the Wire Act (Section 1084, Title 18) does not apply to pari-mutuel wagering as authorized by the IHA. The Frank bill exempts only future online wagering that is conducted under the licensing scheme created by H.R. 2267. An express exemption from the Wire Act clarifies and reaffirms the legality of online pari-mutuel wagering under the IHA.
- S. 1597 (Section 203) amends the tax code to eliminate the automatic 25% federal withholding on pari-mutuel winnings of $5,000 or more (incorporating tax legislation also known as the Pari-mutuel Conformity and Equality Act, or PACE Act).
- S. 1597 (Section 205 (d)) clarifies that winning wagers placed on pari-mutuel races by persons located outside the United States shall not be subject to withholding or reporting requirements.
- S. 1597 (Section 206) raises the reportable amount for pari-mutuel winnings from $600 at odds of 300-1 to $1,200 at odds of 300-1, in line with the reportable dollar amount for slot machine winnings.
-30-
|
|
|
|