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The original version of the Internet Gambling Funding Prohibition Act, supported by some social conservatives, would have made it illegal for any gambling business to knowingly process credit cards, accept checks, or conduct any other transaction related to Internet gambling.
But a successful amendment by Rep. John Sweeney dramatically restricted the bill's scope by limiting it to "illegal" activities.
Horse racing alone, according to Sweeney, is responsible for a $34 billion economic stimulus in the U.S., 34 percent of which is generated online and through simulcasting and off-site betting.
"The bill as is would kill this industry," Sweeney said.
The New York Republican serves the district in which the Saratoga Race Course is located.
The legislation, backed by banking committee chairman Jim Leach (R-Iowa), was a response to a report last year from the National Gambling Impact Study Commission that recommended Congress prohibit Internet gambling.
But a source close to the committee said that most Republicans on the panel thought it went too far, and Leach failed to rally support for his bill during a leadership caucus.
A related measure, H.R.3125, was approved this spring in the House Judiciary Committee and was designed to outlaw many forms of Internet gambling. But lobbyists for special interests flexed their legislative muscle, and horse racing, jai alai, casinos, and other regulated and legal gambling activities won exemptions.
The insertion of "illegal" in the banking bill appears to ensure the same exemptions for these industries.
Opponents of increased government regulation applauded the amendment.
"We're getting very much involved in a dangerous area here, where the nanny state comes in and prevents us from making choices that we should be able to make for ourselves," said Rep. Ron Paul (R-Texas).
But a successful amendment by Rep. John Sweeney dramatically restricted the bill's scope by limiting it to "illegal" activities.
Horse racing alone, according to Sweeney, is responsible for a $34 billion economic stimulus in the U.S., 34 percent of which is generated online and through simulcasting and off-site betting.
"The bill as is would kill this industry," Sweeney said.
The New York Republican serves the district in which the Saratoga Race Course is located.
The legislation, backed by banking committee chairman Jim Leach (R-Iowa), was a response to a report last year from the National Gambling Impact Study Commission that recommended Congress prohibit Internet gambling.
But a source close to the committee said that most Republicans on the panel thought it went too far, and Leach failed to rally support for his bill during a leadership caucus.
A related measure, H.R.3125, was approved this spring in the House Judiciary Committee and was designed to outlaw many forms of Internet gambling. But lobbyists for special interests flexed their legislative muscle, and horse racing, jai alai, casinos, and other regulated and legal gambling activities won exemptions.
The insertion of "illegal" in the banking bill appears to ensure the same exemptions for these industries.
Opponents of increased government regulation applauded the amendment.
"We're getting very much involved in a dangerous area here, where the nanny state comes in and prevents us from making choices that we should be able to make for ourselves," said Rep. Ron Paul (R-Texas).