MORE SNEAKY WORK AFOOT (Update)

(526) (26-September-2006)

Frist still trying to attach online gambling measure to Defence Bill despite earlier rejection by Armed Services Committee

The good news that Senator Bill Frist's attempt to fast track anti-online gambling measures through attachment to a Defence bill  had failed was followed after the weekend with reports that the issue was not dead yet.

TheHill.com reported that controversial language to curb illegal gambling on the Internet had "snuck back" into the defence authorisation bill over the weekend.

While the language in the bill was not finalised as of press time Monday night, the insertion of the Internet gaming language could be potentially dangerous. However, the issue is being further complicated by the continued threats of House Speaker Dennis Hastert to postpone a vote on the overarching bill until negotiators from both chambers include unrelated measures on immigration and court security.

"The Speaker will not move this bill until these critical security measures are included in it," Hastert spokesman Ron Bonjean.

Conferees were still ironing out defense-related issues yesterday, but lawmakers are now fighting to include a number of non-germane, non-defense items in the must-pass bill that has become a regular vehicle for pet projects.

The Internet gaming language would create an additional enforcement mechanism for federal officials to crack down on money transferred from banks, credit card companies and other financial institutions to gambling outfits overseas.

The language included in the defence reauthorisation bill appeared to mirror Rep. Jim Leach's anti-online gambling language, numerous outside lobbyists said over the weekend. Sen. Jon Kyl (R-Ariz.) has been pushing a companion to the Leach bill, which is far narrower than Goodlatte's legislation that would, among other things, revamp the 1961 Wire Act.

Frist has been working hard to include some version of the Internet gaming language in the defence reauthorisation bill in what a number of outside lobbyists see as a push to ingratiate himself with social conservatives and, more specifically, Leach, whose endorsement would be a big boost during the Iowa primary.

The Internet gaming issue is far from settled because conference negotiations do not end until all the negotiators have signed off on an agreement.

This move to include an Internet gambling curb comes after Senate Armed Services Chairman John Warner (R-Va.) and Sen. Carl Levin (D-Mich.), the committee's ranking Democrat, rebuffed Frist's attempts to include it in the bill because it is not related to defense policy.

Friedman, Billings, Ramsey & Co, an Arlington, Va.-based investment firm, has been tracking the legislation closely as it related to various Internet gambling companies. In a report last week, the firm wrote that "failure to attach a gaming provision to the DOD authorisation bill likely means that proponents have missed their last best chance to pass anti-gaming provisions.before senators head home for the final campaign stretch run."