The United States House of Representatives Judiciary Committee began discussions Wednesday on the Internet Gambling Prohibition Act but did not bring the bill up for a final vote to send it along to the full House. The committee is scheduled to continue hearings on the bill on Thursday.American Horse Council President Jay Hickey said the committee approved an amendment introduced by New Jersey Democrat Steve Rothman that made the bill conform to similar legislation passed last year by the Senate, specifically exempting pari-mutuel wagering from restrictions. Another amendment, introduced by Indiana Republican Ed Pease, struck out lottery exemptions from the bill.

Hickey said he anticipates Thursday's meeting to be crucial to the racing industry's future because amendments are expected to be introduced eliminating all exemptions, including the one for pari-mutuel wagering. "The industry has done an awful lot of work and contacted everyone on the committee," Hickey said.

The bill as originally introduced by Arizona Republican John Kyl in the Senate would have made all forms of Internet wagering illegal, including account wagering on pari-mutuel racing. Kyl added language exempting pari-mutuel wagering last year following intensive lobbying efforts by the racing industry. Internet wagering as seen as a potentially lucrative source of revenue for the sport.

Meanwhile, a New Jersey state assemblyman told the Asbury Park Press that he was considering introducing a bill that would legalize Internet gambling for casinos in Atlantic City.

"If we allow it in New Jersey, at least we'll be honest," said Monmouth Republican Joseph Azzolina. "Sometimes we need to fight fire with fire."

Azzolina said legalizing Internet wagering would make gaming safer and provide the state with a new tax base. But New Jersey law enforcement officials told the newspaper that Governor Christine Todd Whitman still favors making Internet gambling a crime instead of trying to regulate it. —John Harrell