Internet betting bill unlikely this congressional session

WASHINGTON — Gamblers and casino interests are throwing in their cards as prospects to legalize poker gambling over the Internet are all but dead for this year in Congress.

Even though only days remain in the congressional session, lobbyists and Capitol Hill officials are reluctant to publicly throw dirt on the effort. Strange things can happen during the rush to adjournment, such as the surprise 11th hour passage of legislation by Republican conservatives in 2006 to restrict online gambling.

But failing a last-minute turnabout this time, gamers are folding the hand that’s been dealt. Negotiations “have pretty much come to a stop,” said a lobbyist.

“We would be looking for a Christmas miracle for it to happen,” said John Pappas, executive director of the Poker Players Alliance that has advocated for a legalization bill.

“No bill is dead until Congress adjourns, but all indications right now from staff, from members of Congress, from lobbyists who work the issue, they would all agree it is not likely to move between now and the end of the year,” Pappas said.

Likely the last best opportunity for passage disappeared late Thursday when Senate Majority Leader Harry Reid of Nevada shelved a trillion-dollar year-end spending bill where poker legislation could have been attached as an amendment.

Earlier, Sen. Jon Kyl, R-Ariz., served notice he would block poker from being added to a major tax cut bill. That bill was passed by Congress this week and was signed into law Friday by President Barack Obama.

“We are trying to get it done,” said Jon Summers, a spokesman for Reid, the main proponent of the bill that would legalize online poker while tightening restrictions on other types of Internet gaming.

“It is not looking great for this year but we are trying to get it done, and if we don’t get it done this year we will try to get it done next year,” Summers said.

The poker bill, which has not been formally introduced, does not have enough support to advance as a stand-alone measure. And while Congress continues to work on legislation, it was not clear Friday what upcoming bills might serve as a host for a poker amendment, even if Kyl or other Republicans can be persuaded to support it.

According to a lobbyist who had been in contact with Kyl, the Arizona senator was negotiating with Reid at one point, but was challenged by House Republicans who demanded the issue be shelved for this session.

“Negotiations were like the hamster that spins the wheel,” the frustrated lobbyist said. “The faster you run you still get nowhere.”

According to lobbyists who confirmed reporting by gaming trade websites, there also were several sticking points being negotiated late in the game. Among them was the inclusion of a “blackout period” following the passage of the bill before online poker rooms could be licensed. Another was the length of time before offshore gaming companies would be allowed to apply for a U.S. license.

The purpose of both, officials said, was to “level the playing field” for Nevada casinos that would compete against Poker Stars and Full Tilt, the two leading online poker rooms that are based outside the United States.

But there emerged a split in Nevada on that point, lobbyists said. Companies like Caesars Entertainment Corp. are eyeing their own poker brand while others may seek partnerships with outside companies. And casinos who believe they needed more time to catch up on the Internet were seeking a longer waiting period for overseas competitors.

The last big push came last week, when the American Gaming Association issued a statement in support of Reid’s bill. It marked the first time the industry’s usually behind-the-scenes political arm had endorsed online gaming legislation.

“The final gambit was to have the AGA come out and all the big companies that stand to benefit come out and endorse,” said a congressional aide. “The aim was to convince people that this helps an industry that at least some Republicans want to court.”

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760.