A battle taking shape over legislation to legalize online gambling has triggered a multi-million-dollar lobbying push and strong interest from St. Louisans in Congress.
Reps. William Lacy Clay and Russ Carnahan are co-sponsors of a bill that would legalize online wagering with an eye toward billions in revenues from taxing Internet wagering sites.
The two St. Louis Democrats also were among House members who wrote the Treasury Department last fall arguing that a law passed in 2006 banning transfers of betting funds should be delayed. The government agreed to further delay enforcement until June.
Now, action behind the scenes is heating up with the bill's chief sponsor, Rep. Barney Frank, D-Mass., planning to take up the new legislation soon in the Financial Services Committee that he chairs.
"Americans ought to be free to do what they want with their own money," Frank said in an interview this week.
Frank's legislation pits Internet freedom issues against warnings of dangers from easier access to gambling. Online gambling remains illegal under an old federal law aimed at bookies using telephones, but the government rarely prosecutes.
Lobbying disclosure reports of partial spending by pro-gambling interests reflect their eagerness to expand operations in a global online betting market projected to surpass $20 billion this year.
Harrah's, the world's largest casino operator, spent more than $3 million since last year to promote online gambling. Canadian-based Interactive Gaming Council contributed at least $2.3 million to the pro-betting effort, according to the disclosure statements.
In addition, PokerStars, which bills itself as the world's largest online poker room, paid $300,000 through an intermediary to Rep. Dick Gephardt, a former House Democratic leader and presidential aspirant from St. Louis who now runs a lucrative lobbying business.
On the other side, professional sports leagues, worried about tarnishing their brands, have aligned themselves with pro-family groups. The National Football League alone paid a lobbying firm $800,000 since last year trying to derail Frank's legislation.
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