6 April 2006


'As Congress continues to haggle over the scope and objective of the proposed Internet Gambling Prohibition Act, the racing industry again finds itself in disagreement with the Department of Justice over whether interstate simulcasts are legal under the federal law.

During an April 5 hearing before the House Judiciary Committee's Subcommittee on Crime, Terrorism, and Homeland Security in Washington, D.C., questions often turned to the racing industry and whether it has a carve-out in the Internet Gambling Prohibition Act, which would target use of credit cards for Internet gambling but not expressly ban it. Lawmakers said they are somewhat confused by the legislation, in part because pari-mutuel wagering is governed by other laws.'.............

'Bruce Ohr, chief of the Organized Crime and Racketeering Section in the Criminal Division of the Department of Justice, said the views existing criminal statutes as "prohibiting the interstate transmission of bets or wagers, including wagers on horse races." He said the department is "currently undertaking a civil investigation relating to a potential violation of law regarding this activity," but offered no details.'

More from Drf:

Officials for the Justice Department have argued over the past six years that interstate wagering on horse races is illegal, but the department has never acknowledged an investigation into the horse racing industry's practices. Ohr also said during his remarks that the Justice Department is concerned about the potential for fraud, money laundering, and the involvement of organized crime in Internet wagering, citing specifically a recent indictment of 17 individuals for operating an illegal gambling ring that bet $200 million on horse races over four years through five rebate shops.

No comments: