N.D. House OKs massive Internet gambling Legislation

[wiggum82]

Here is a story published in the Fargo Forum, Thursday, Feb. 17, 2005.

Very interesting indeed. What do you guys think? What does this mean for us Internet gamblers in America?

Online poker? You bet
* Some N.D. lawmakers say the state can profit by providing a safe haven for online gambling outfits now operating overseas.

BISMARCK – After glowing speeches about its potential for economic development, jobs and unique opportunities, the House voted Wednesday to have the state become a national headquarters for companies that host worldwide live Internet poker.
Rep. Bill Kretschmar, R-Venturia, said North Dakota would offer to regulate the industry here, collecting taxes and fees for its general fund in the process.
“It’s like ‘If you build it they will come,’ ” he said. No companies operate in the U.S. now, he said. They are in the Caribbean or other foreign countries.
Rep. Jim Kasper, R-Fargo, is the prime sponsor of House Bill 1509 and said the state could enjoy tremendous revenue from licensing and regulating the industry.
“This industry is growing at about 10 percent per month. No single state has passed legislation like this. We would be the first to do that,” he said. “So the market is tremendous and as you know, the first one out of the chute generally has a pretty good opportunity to capture that marketplace.”
He said that because the Internet sites are already there, “This is not an expansion of gaming whatsoever.”
He said if the state licenses 200 poker sites, it could take in $40 million. There are 50 million Internet poker players in the country now and 300 million worldwide. If the state licensed 50 million players, “That’s 500 million dollars per year new revenue to North Dakota.”
Another sponsor, Rep. Ron Iverson, R-Fargo, said, “This is a rare opportunity for us to be first out of the gate here. The reason other states aren’t doing this is they don’t have the foresight. This is our time. This is our time to seize this opportunity.”
Rep. Lawrence Klemin, R-Fargo, said he doesn’t think companies would bring jobs here. It’s more likely the company would bring a 4-foot-by-4-foot computer server, he said.
The bill passed 49-43.
The bill now goes to the Senate.

[tek]

I thought hosting online gambling was a federal violation.

[daveymck]

Doesnt matter I think most of the big sites will come to the UK once our Gaambling bill gets its final reading.

[Patrick del Poker Grande]

I can't believe it took this long for a state to do this.

[megabit]

I think this will create a great fight on states rights. The feds will never let this happen, I don't think they can rack in enough to cover the Fed funds they would loose.

[tek]

States rights pretty much ended with the Buck Act of 1940.

http://search.yahoo.com/search?p=buc...1&ei=UTF-8

[SinCityGuy]

[ QUOTE ]
I thought hosting online gambling was a federal violation.

[/ QUOTE ]

The ultimate test will come when more states rule on whether poker falls into the gambling category, or whether it is a game of skill (California).

[J.R.]

You're an absolute moron.

Ever hear of Morrison or Lopez? Go, go Rehnquist Court! Give us Raich (they almost certainly won't though).

[J.R.]

[ QUOTE ]
The ultimate test will come when more states rule on whether poker falls into the gambling category, or whether it is a game of skill (California).

[/ QUOTE ]

What does this artifical, California state law distinction have to do with anything? There are states (not indian tribes) who have authorized "non-skill" gambling, e.g. slots or intra-state lotteries, and the feds can't inherently regulate that state activity simply becuase it involves gambling. The issue here is interstate/international commerce hook via the internet.

[lucas9000]

[ QUOTE ]
I think this will create a great fight on states rights.

[/ QUOTE ]

not really. online gaming falls pretty neatly into the commerce clause power held by the federal government. commerce clause > all.