Gambling News - July 2005 Edition

"Operating Online Gambling Becomes Felony Under New Indiana Law"

Internet gambling companies operating in Indiana taking a close look at themselves as new laws are implemented

Senator David Ford of Indiana has co-authored a bill that makes the operation of an Internet gambling site a felony, unless specifically allowed by statute. This follows the example set by Senator Kyle of Arizona in his attempts to make certain that online gambling remains illegal. The previous state law looked at violations of laws that prohibited Internet gambling as misdemeanors only. According to Senator Ford, the bill is intended as a way to give the state of Indiana more control over gaming. “Internet wagering providers have known it’s been illegal.” Senator Ford reported to the Indianapolis Star, “but they just winked at the law. This puts teeth into it.”

The law passed rather quickly back in April with the state House voting 74-21 in favor and the Senate approving it 46 – 0. It was signed by Governor of Indiana, Mitch Daniels, into law on April 25 th.

Television Games Network can no longer do business in Indiana and will be closing its accounts and refunding money as a result of the law. Other Internet gambling companies operating in Indiana, such as BrisBet and WinTicket, do not plan to take any action until their attorneys have examined the new law very carefully. These two businesses are part of the American Tab family account of wagering providers which is waiting for the outcome of that review, according to its general manager, Tod Bowker. He added, “we will make a decision on the status of our customers in Indiana after we have fully examined the law.”

Also doing business in Indiana are Youbet.com and Magma Entertainment Corporation’s Xpress Bet. Officials from these two companies were not available for comment on the new law.

Senator Rose Antich-Carr, a co-author of the new law, echoed Senator Ford’s comment that the intent of the bill was to give the state of Indiana more control over the gaming industry. Antich-Carr told the Louiseville Courier Journal that the bill’s intent was “to stop all other online gambling”. In this statement, Antich-Carr said that the horse industry lobby did not object to the bill as it moved through the Legislature and said the law referred to sports betting and poker only.

Television Games Network Vice President, John Hindman had the following to say concerning the intent of the law: “While we have no reason to believe that the intent of the Legislature was to curb legal forms of wagering such as pari-mutuel wagering on horse racing, we have decided that the prudent course of action is to suspend wagering transactions with Indiana residents”.

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