Internet Gambling and the Presidential Race

For far more than 200 years, the federal government has let the states decide what their public policy toward gambling will be. Neighboring states, like Utah and Nevada, can adopt prohibition or casinos, and the federal government's role has been to either step aside or, if asked, to help a state enforce its laws.

That relationship changed on October 13, 2006, when Pres. George W. Bush signed the SAFE Port Act. As part of a futile presidential bid, Bill Frist (R.-TN.), then Majority Leader of the U.S. Senate, had tacked on the Unlawful Internet Gambling Enforcement Act.

The impact of the UIGEA is well known. Now the question is, when will it be changed? The answer depends in part on presidential politics.

The Republicans have little interest in liberalizing Internet gambling, especially in an election year, when they are pandering to the religious far right. Even if the Democrats could squeeze a legalization bill through Congress, Pres. Bush would veto it.

When Democrats took control of the Senate, Harry Reid, senator from Nevada, became Majority Leader. The American Gaming Association, the lobbying group for land-based casinos, wants a study that will conclude that online gaming can be conducted safely and should be limited to operators who are already licensed. For example, land-based casinos.

Sen. Reid could make that happen, if the President is also a Democrat. But if John McCain wins, Republicans will take over the Senate, so nothing will change.

Insiders know that if Hillary Clinton is the nominee, Democrats will lose the Senate, even if she wins the presidency by carrying large, industrial states. Although she is admired by many, Hillary is the most hated woman in America. She is so despised that it is hard to think of any woman who would be in second place.

As John A. Millin, chair of the Wyoming state Democratic Party put it: "It has become the dirty little secret in the Democratic Party. For reasons I don't agree with and don't completely understand, most voters in Wyoming seem to hate Hillary Clinton."

It has been said that she is the only person who can unify the Republican Party. Many conservatives will sit out the election if it is Barack Obama versus McCain. But they will be energized if they can vote against Hillary. In the process they will also vote against Democratic candidates for Congress. It will be massive numbers of Democrats who won't vote if the Clintons are seen as stealing the nomination from Obama, or sending him to the back of the bus as Vice President. There will then be four years of deadlock.

Assuming Obama is nominated and wins, the Democrats will keep control of Congress and there will be a change in federal law. It might come as early as 2009. More likely, it won't be until 2010, or even later. The federal law will go back to allowing the states to decide. If a state wants to allow its residents to bet online, it can opt-in, exactly the system that exists for horseracing today.

But that change won't happen for many years, unless Obama is elected President and the Democrats keep control of Congress.

"The impact of the UIGEA is well known. Now the question is, when will it be changed? The answer depends in part on presidential politics."

Do you honestly believe that online gambling has a greater affect on the majority of Americans than the price of gas, health care, illegals, or the war in Iraq? 

"Insiders know that if Hillary Clinton is the nominee, Democrats will lose the Senate, even if she wins the presidency by carrying large, industrial states."

I believe the reason she is still in the race is because she won the primaries in the large industrial states with the exception of Obama's home state Illinois.  Other "insiders" know if Obama gets the nomination and if the Clinton voters switch to McCain in just two of those states, McCain not only wins the election but Senate seats could be lost in traditional Democrat states.

"Assuming Obama is nominated and wins, the Democrats will keep control of Congress and there will be a change in federal law."

The Internet gambling act had no affect on state lotteries, the average lottery player, and doesn't prevent non-lottery states from creating a state lottery. There was a huge affect on the people running the online gambling sites who obviously would support any candidate they believe will get them back into business. 

"But that change won't happen for many years, unless Obama is elected President and the Democrats keep control of Congress."

The price of gas will be 5 bucks a gallon and foreclosures will be at an all time high but the first act by the new Senate will be to repeal the Internet gambling act?

I don't think there will be any change to online gambling. WA state is about as blue as it gets but has the harshest laws on online gambling. It's all about the money. Indian casinos here give politicians a lot of money so the law occured. No real money on the online side to give yet.

The only real change to jackpot games at least would be if Obama gets elected. The tax rates would approach what they were in the seventies and it would remove any insentive to play lotteries in the states except for pick 3 games that don't report winnings to the IRS. I have little hope of the states joining the rest of the civilized world and not taxing jackpot winnings of state sponsored games. Instead we would see games of $100 million out of which the winner could easily recieve less than $19 million.

Anyone remember the last time a law was repealed?  Laws like this tend to remain on the books forever, but enforcement may no longer be a priority. 

Tax free lottery games' taxes are in the ticket price.   

BobP

Three excellent responses to the initial post.  Very thoughtful and well-done.

I'm sorry, I love playing the lottery.  But not enough to vote in Osama!  And  Clinton may be hated, but she isn't anti-american.  Sincce McCain is republican, he doesn't have my vote, either.  Clinton is my choice.  And I think with the right persuasion after the election, we can have  the law changed.,

I agree

Obama/Clinton  My choice

Mines "None of the Above" and I wish more people would vote that way. I guess I could vote third party again but, meh... I'm not at all enthusiastic about McCain, Obama or Clinton.

Operation Chaos. That's all I need to say about these two pathetic Demo's running for Pres. If voting for one of these two hoping to be able to online gamble again is what's motivating you then I wish your gambling issues well.