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  Gambling News - July 2005  

"Operating Online Gambling Becomes Felony Under New Indiana Law"

Not unlike Senator Kyle of Arizona in his attempts to make certain that online gambling remains illegal, Senator David Ford of Indiana has co-authored a bill that makes the operation of an Internet gambling site a felony, (unless allowed by statute). The new law differs from previous state law which looked at violations of laws that prohibited Internet gambling as misdemeanors only. The bill, according to Senator Ford, 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. “They just winked at the law. This puts some teeth in it.”

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

Youbet.com and Magma Entertainment Corporation’s Xpress Bet also do business in Indiana, but officials from those two companies were not immediately available for comment on the new law.

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

Concerning the intent of the law, Television Games Network Vice President, John Hindman had the following to say: “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”.

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 actually signed into law on April 25 th by Governor of Indiana, Mitch Daniels.

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