Online Pari-Mutuel Wagering Not Sure Bet

KENTUCKY – As reported by the Louisville, Kentucky Courier-Journal: "Last month's Kentucky Derby was a boom for companies that allow bettors to wager in front of their television sets and computer screens.

"Horse racing network TVG, which takes bets over the phone and through the Internet, processed a record $6.4 million in bets on Derby Day. Youbet.com handled $4.2 million, also a single-day record.

"The Internet's reach into virtually every corner of modern life has helped make account wagering the fastest-growing segment of thoroughbred racing.

"But the future of online pari-mutuel wagering is far from a sure bet.

"In April, the World Trade Organization ruled that the United States does not treat foreign and domestic Internet gambling businesses equally -- violating international trade rules it agreed to upon joining the WTO in 1995.

"Meanwhile, a bill being drafted on Capitol Hill is aimed at illegal online gambling but doesn't create an exemption for horse racing.

"…For years, horseplayers had to make their bets in person at racetracks. The Interstate Horseracing Act of 1978 changed the betting landscape and allowed bettors in one state to gamble on a race in another state. That led to an explosion of races being simulcast across the country.

"The act was amended in 2000 to allow Internet wagering on horse racing across state lines, despite objections from some lawmakers and the U.S. Department of Justice. Racing is the only legal form of online betting in the United States.

"…Any change to Internet betting laws could have a drastic impact on account wagering companies, as well as racetrack operators…"