The Internet Gambling Prohibition Act cleared the United States House Judiciary Committee on Thursday with pari-mutuel wagering's exemption from restrictions intact. The bill now goes to the full House for consideration. American Horse Council (AHC) President Jay Hickey said an anticipated substitute bill that would have eliminated all exemptions, including the one for pari-mutuel wagering, was not offered during Thursday's session, nor were any amendments with similar changes. The U. S. Department of Justice had stated earlier that it was not comfortable with any exemptions being included in the bill. The bill passed on Thursday by a 21-to-8 margin.

"This is a huge step for us," Hickey said. "This was the best example of the grass roots of the industry getting together. (National Thoroughbred Racing Association Commissioner) Tim Smith came to Washington and every member of the committee was contacted by people in the industry."

The Internet Gambling Prohibition Act originally was introduced several years ago in the U. S. Senate by Arizona Republican John Kyl. The AHC fought the original bill, which would have prohibited all forms of Internet wagering, but moved to support the bill after language was added exempting pari-mutuel wagering. The Senate passed the bill last year. The House version of the bill is sponsored by Virginia Republican Bob Goodlatte.

"The Internet presents new challenges to the sovereignty of civilized communities, states, and nations," said Goodlatte. "The Internet Gambling Prohibition Act brings the current ban against interstate gambling up to speed with the development of new technology, and it protects the right of citizens in each state to decide through their state legislatures if they want to allow and regulate gambling within their borders and not have that right taken away by offshore, fly-by-night operators."

Internet wagering is viewed as a key revenue source for the Thoroughbred racing industry in future years, and the Television Games Network is scheduled to launch an Internet wagering platform later this spring.—John Harrell