Behind the Horse Racing Carve-Out

By: change100 – October 05, 2006

So, how did the thoroughbred racing industry ensure their carve-out in the online gambling legislation? As the U.K. newspaper The Independent examines today, they pretty much (a) organized and got their shit together and (b)put money in the right pockets, including those of original bill architect Rep. Bob Goodlatte, who was one of the top four recipients of campaigh contributions from the National Thoroughbred Racing Association. The NTRA met with Goodlatte as well as other influential Republicans and "educated" them on all things horsey, ensuring their legal carve-out in the bill.

The article also suggests that the online gaming companies (after tearing their hair out in anguish) have learned a great deal from the racing industry's lobbying efforts and are vowing to mount similar campaigns in the near future in pursuit of their own carve-out, or a new piece of legislation that would fully regulate internet gaming.

Tags: laws and legislation, online poker, poker news, laws and legislation

change100's blog

The big difference is, horses tie to farms, farms tie to farmers, and no one wants to be accused of hurting American farmers. Online poker sites, as they were, didn't help anyone in the US.

April Kyle – October 5, 2006 – 3:09pm

From what I've read -- and I swear I'm not saying this because we love them -- but PartyPoker was the only one spending significant lobbying dollars in Washington DC. Not sure with whom ... the banking industry maybe? The article suggests that it only cost the equestrian lobby $3-4 million to secure their carveout. Though you can't really blame Party for not knowing who's who in the American political game, too bad our Euro friends didn't put about a day's worth of revenue behind the right horse.

Dan Michalski – October 5, 2006 – 3:23pm

$40 billion industry, $12 billion industry? It's all still money. Though you're right-- lightning will strike down any politician caught hurting farmers in any way shape or form.

However, I'd venture to say online poker has helped a lot of people. One only has to watch the WSOP PLH episode with Eric "Rizen" Lynch that aired a couple of nights ago and listen to him talk about how playing online lets him watch his kids grow up in a way he couldn't if he worked a day job. Makes you wonder how many more guys like that there are out there. How many people have used poker to pay off debt? Student loans? Finance their kids' education? Buy a house?

change100 – October 5, 2006 – 3:25pm

Yes, true, but think of it from the politican standpoint. Horse racing is almost as American as apple pie. Forget what goes on in those little windows near the track, it's all about the majesty of the beasts. Online gambling...enh, not so much. For sure it's helped many people acomplish things they needed/wanted to do, but college kids and desk monkeys who could have taken a second job at McDonald's if they really needed to don't pull the heartstrings nearly as much as Farmer Brown. And as we've seen, in the eyes of many of our Reps.; saying you play poker so you can stay home with the kids is akin to saying you deal drugs or turn tricks at night so you're there when Timmy gets home from school. It's a societal stigma that, while it has lessened a bit in recent years, isn't fully going away any time soon.

April Kyle – October 5, 2006 – 4:30pm

Where do you think the money these players have won came from? It didn't grow on a tree.

How many people lost their house? Couldn't pay for their kid's education? Get so in debt they could never hope to pay it off?

My two comment responses may show I'm against online poker and for this bill, but I promise that is far from the truth. But I have to point out that there's the other side to this argument and I can see where the naysayers are coming from.

Tuscaloosa Johnny – October 5, 2006 – 5:45pm

The legislation is still a bit messy. I can sit at home, in Las Vegas, and watch the horse racing on TVG but cannot bet on it. If I lived in California I would be allowed to. I suspect the casinos are behind this.

I can bet on Pinnacle or one of the other offshore sites but not the official pool. By accepting bets from horse players in Nevada the CEO's of these sites are leaving themselves open to arrest when entering the USA.

charliebigtime – October 5, 2006 – 5:09pm

Losing one's house, one's savings, etc. via online gambling shows nothing but piss-poor judgement and a total lack of personal responsibility. Do you honestly think it's possible to legislate personal responsibilty?

Just like there are problem alcoholics in this country who choose to injest a gallon of Jim Beam and get in a car, there are gamblers who will throw everything in on one bet. But that doesn't mean we ban the rest of the country from drinking whiskey. We tried that once and it failed miserably.

And how would losing one's house on poker be any different than losing it on a horse race? Seems to me it would be a lot easier to do it that way.

change100 – October 5, 2006 – 6:36pm

it always astounds me how uncle sam feels the need to save us from ourselves. Its like the seat belt law. OH THEY SAVE LIVES!!! They also create huge revenue for the state when i get cought not wearing one. if i want to be comfortable in my car, i leave it off. it does not change the way i drive. So now to save me again....this bill. if i blow my rent online or in the casino, whats the diff? the state makes money when i do it in a casnio and they dont get a dime when i do it nekkid online. and this donkey from Tenn.......he will never admit to playing in a private game in downtown nashville last year.
The sites need to start to treat it like the lotto, build a park, a school a bmw for the gov. Yes gambling is an addiction in alot of ppls eyes, but so is booze, pain pills, smokes and mcdonalds but these drugs are legal.
there was a donkey on cnn claiming that the main reason for it is because terrorists are using online casnios to launder money. well they do it with pirated DVD sales too. where will they stop? when will it be ok? when they get paid.

pkrporcupine – October 13, 2006 – 2:03pm