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Kyl/Goodlatte Can No Longer Count on the AGA

"The original position of the AGA -- namely, that any type of gaming that is not subject to strict regulatory and law enforcement oversight is opposed by the industry -- that hasn't changed," Fahrenkopf told RGT Online this afternoon. "With regard to any legislation that would be introduced in Congress, if in fact another bill is introduced, we're going to examine that bill in great detail before making a decision on it."

Since the AGA's board last met, two of its key members, casino giants MGM Mirage and Harrah's Entertainment, have announced plans to put play-for-free casino games on their Web sites. Harrah's has already done so and MGM Mirage's sites are under development by a partner.

Both companies said they want to be ready to "flip a switch" and offer real-money games on their sites if the legal and regulatory climate in the US changes.

So the AGA is being watched for signs that it may ease its historic opposition to online gaming. The organization contributed more than $6 million to political parties this year, money that can influence Congress as well as the state officials who appoint regulators.

Asked if the group is softening its stance, Fahrenkopf said, "I don't know whether softening is the right word. It depends on what the next piece of legislation looks like."

The emphasis, he said, should be on regulation. If that's forthcoming, the AGA will climb aboard.

"If the Nevada Gaming Control Board and Commission or New Jersey or one of our other major jurisdictions, our regulatory authorities, come forward and say 'We now believe that we can regulate it and we're going to start licensing,' you'd see our board in favor of that in a moment," Fahrenkopf told RGT Online. "But not until the regulators are convinced that they can properly handle it."

He said that the original bill to ban Internet gaming that was introduced several years ago by Arizona's Republican Senator Jon Kyl was nothing like the bill that evolved in the US House this summer. That bill, sponsored by Republican Representative Robert Goodlatte of Virginia, was defeated in July, although it got majority support.

"When the bill was first introduced, it wasn't a question of us supporting it," Fahrenkopf said. "We said we didn't oppose it. That bill worked its way through with amendments on the House side. We wanted to make sure that there were certain things in that bill that preserved the status quo with regard to Nevada and some of our other jurisdictions.

"So we agreed to support the bill when it was going through changes over in the House side, so long as our industry was protected."

Fahrenkopf, who once served as national chairman of the Republican Party, said he has no idea what to expect from the new Congress, which is narrowly divided between Republicans and Democrats. He doesn't think the gaming industry will fare particularly better or worse than it has in previous sessions of Congress.

"I don't think there's any major changes at the presidential level or in the Congress with regard to most of our legislation," he said.

The AGA will continue to fight vigorously against legislation backed by the NCAA that would prohibit wagering on college sports events, which is now legal only in Nevada. Fahrenkopf admitted that the odds of blocking the legislation are long.

"We're going to work very hard on really educating members of Congress and the Senate that it doesn't only affect Nevada," he said. "That if they take this state's right away from Nevada, the impact's going to be maybe more negative in their states because there isn't going to be any legal sports wagering. That's not going to get rid of it. It's all going to go underground and the problem's going to be worse."

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