By Shari Geller
The seemingly endless process of bringing legal and regulated online poker to the U.S. encountered a significant setback today when the District of Columbia Council voted to repeal the city’s controversial Internet gambling law.
Last year, Internet gambling was added to the city’s existing 2009 lottery contract as a “non-traditional games” option. Internet gambling was subsequently legalized in the district through first-in-the-nation language added to a 2010 spending bill, making DC the first to have a law legalizing online poker on the books.
But, when the 2009 lottery contract became embroiled in debate over how the council and Mayor Vincent C. Gray (D) managed the city’s lottery contract, gambling opponents had the time to mount an objection to the law. Some in the council claimed that they were not aware of what they were voting on when they approved Internet gambling in 2010.
Supporters of Internet gambling attempted an eleventh-hour save to keep the law on the books. Council member Michael A. Brown (I-At large), who had spearheaded the 2010 bill, trying to salvage the language that allowed for internet gambling in the district while agreeing to cancel the i-Gaming contract. But council ended up voting 10-2 to end the city’s contract for I-Gaming and reverse the legislation that authorized the games.
“I want to make sure we get the best deal for the city,” said Council member Jack Evans (D-Ward 2), who opposed the original bill. “I believe it should be set up, so the city gets the best price and the best revenue.”
Brown, however, was doubtful that the new Republican-controlled Congress would support any new Internet-gambling legislation passed by the council. According to supporters on Internet gambling, the repeal will cost the city an estimated $13.1 million in revenue through September 2015.
A small glimmer of hope of passing similar Internet gambling legislation came from those who voted to repeal the existing law. “This was going to be our thing, our laws, governed by us,” Brown said. “We were going to reap the benefits from tourist, from residents.”
Not only is the district losing out on that revenue, but there is a chance that it could be sued by the lottery contractor, Intralot, for breach of contract. Intralot spent over $5 million in setting up an intrastate iGaming system and it could sue the district to recoup its costs.
A small glimmer of hope for supporters of Internet gambling came, ironically, from those who had voted to repeal the existing law. Council member Mary M. Cheh (D-Ward 3) echoed the sentiment of others in the council who are not completely opposed to continuing the dialogue and working towards some other legislation to legalize Internet gambling in the district.
“I believe there is a place we can try this,” Cheh said. “ I just think it can be controlled.”
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