Online gambling is officially under attack, with bills having been introduced in both houses of Congress to eradicate the U.S. industry. (This must be one of those occasions when it’s OK to be “anti-business.”) As reported earlier the Senate version has the backing of Sen. Lindsey Graham (R-S.C.) and the House one is the creature of Rep. Jason Chaffetz (R-UT). Each has picked up at least one Democratic ally. Sen. Dianne Feinstein (D-CA, right) has rallied to Graham’s side, while Chaffetz has Rep. Emanuel Cleaver (D-MO), Rep. Tulsi Gabbard (D-HI) and Rep. Jim Matheson (D-UT) among those in his corner.
Perhaps they figure they can subsequently hit up Sheldon Adelson for some re-election money. (One early draft of the bill bore the fingerprints of Las Vegas Sands veep Andy Abboud.) Nevada senators Harry Reid (D) and Dean Heller (R) are trying to split the baby, preserving Internet poker but outlawing everything else. It’s too early to say whether such temporizing will succeed.
A group of governors is pushing back, claiming that the proposed legislation would intrude 
upon states’ rights. The also claim the bill is crudely written and would outlaw “traditional lottery draw games, including Mega Millions and Powerball.” Graham has left in a sweetheart provision that would exempt horse racing from his fatwa. Nevada Gov. Brian Sandoval (R, left) joined ranks with the Democratic governors, voicing his opposition to the bill and characterizing it as a form of federal gaming regulation. Graham responds that he’s doing the bidding of his governor and attorney general. He dared Reid and Heller to bring their poker exception on, declaring, “If you want to have a poker exception, offer an amendment and see if it will pass.”
Illinois is poised to deal another blow to its casino industry. A bill that passed out of a state senate committee would give truck stops special status, with 10 video gaming devices permitted per stop, as opposed to the five-per-facility rule that governs the rest of the state’s slot routes. Opponents fear this will morph into a “mini-casino” industry, with the Land of Lincoln overrun by the likes of Dotty’s and P.T.’s Pubs.
Elsewhere in the Midwest, Tropicana Entertainment is just one step away from having a foothold in the St. Louis market. The Missouri Gaming Commission approved Pinnacle Entertainment‘s $260 million sale of the property. One the sale closes, Tropicana can take the keys.
