Online Horse Betting in Jeopardy

CHICAGO, Illinois – As reported by MarketWatch: "Draft legislation spurred by a World Trade Organization ruling on a dispute between the United States and Antigua could endanger legal Internet betting on horse racing, along with a big chunk of that industry's profit, it if becomes U.S. law.

"The proposal, titled 'The Unlawful Internet Gambling Enforcement Act of 2005,' originated in the office of Sen. Jon Kyl and is now making the rounds on Capitol Hill.

"Like several previous failed bills backed by the Arizona Republican, it would bar credit-card issuers, banks and other financial institutions from transmitting money related to online wagering and authorize a wide array of federal and state law-enforcement agencies to go after the offenders.

"…What makes Kyl's latest proposal different from previous, failed bills is that it doesn't carve out an exception for racing. That has given rise to warnings that the only part of the parimutuel industry that is growing at all -- account, or remote, wagering -- could be run right out of business.

"…At issue is an April decision by the WTO that parts of some U.S. gambling statutes, including the Wire Act, violate the General Agreement on Trade in Services. The trade body also found in favor of Antigua on a claim that the Interstate Horseracing Act, which permits electronic wagering between states where it is legal, discriminates against foreign operators…"