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California Governor Vetoes Bill to Allow Online Betting on Horse Races

The veto was announced Sunday and posted on the governor's Web site. In his message, Davis said:

"Changing State law to allow wagering via the Internet and telephone would be a major change in the status quo and, I believe, a significant expansion of gambling in California. . . .

"It would open the door to children and teenagers placing bets using their parents' accounts over the Internet. And it would allow continual betting through commercial betting systems without being limited by the racing season of any particular racing association."

California Gov. Gray Davis

The bill also contained measures that would have improved conditions for "backstretch" employees at racetracks. It would have set standards for the employees' housing, established a health and welfare fund and given the employees the right of collective bargaining.

Davis supported that part of the bill, and said that if the legislature passes a bill just to achieve those aims, he would sign it.

The vetoed bill was sponsored by Assemblyman Herb Wesson, a Democrat from Los Angeles. Davis is also a Democrat.

Wesson had also sponsored a bill that would have explicitly banned Internet gambling on anything except horse races. It was even more sweeping than the federal Kyl/Goodlatte bills, because it made the online bettor - in addition to the operator of the betting site - subject to prosecution.

That bill also intended "to codify decisions of the courts of this state insofar as they hold that gambling losses and debts from illegal gambling, from online gambling in particular, are unenforceable." That provision was aimed at credit card issuers.

The bill easily passed the California Assembly, but not the Senate.

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