US Internet Lobbying Spend: September 2010
US Internet Gambling Lobbying Spend - 2Q 2010
An Analysis
US Internet Lobbying Spend: September 2010
Author
Contents
Executive Summary
3
Statement Of Method
7
Introduction
8
Editing
James Kilsby, Elizabeth Cronan,
Jennifer Webb and Alexander
Ripps
Breakdown By Lobbying Segment
8
Breakdown By Bill
9
Active Bills
9
US Office
1250 Connecticut Avenue NW
Suite 200
Washington DC 20036
Tel: +1 202 261 3567
Fax: +1 202 261 6583
[email protected]
Inactive Bills
10
Bills: By The Numbers
10
Breakdown By Party
12
Analysis of Current Lobbying Trends
37
Internet Gambling Continues to Generate Peripheral Political Interest
39
Chris Krafcik
UK Office
91 Waterloo Road
London
SE1 8RT
Tel: +44(0)207 921 9980
Fax: +44(0)207 960 2885
[email protected]
www.gamblingcompliance.com
Internet Gambling Lobbying Still
Still Bankrolled By A Small Number
of Big Spenders
40
Interest In Internet Gambling Growing Amongst US LandLand-Based
Gaming Operators
41
Outlook
45
Appendix 1: Legislative Timeline
47
Appendix 2: US Internet Lobbying Spend – Q1 2010
51
About GamblingCompliance
59
US Internet Lobbying Spend: September 2010
About The Author
Chris Krafcik is a freelance
journalist who has covered the
US internet gambling industry
since 2006. Currently, he is
Editor at Large at
GamblingCompliance and
Senior Correspondent with
Gaming Industry Observer, a
newsletter published by
Spectrum Gaming Group. He is
author and creator of two
authoritative reports on US
internet gambling policy – The
Federal Internet Gambling
Lobbying Report and Internet
Gambling on Capitol Hill: An
Ongoing Struggle for Political
Relevance – both of which
were published by BolaVerde
Media Group in 2010.
Executive Summary
In the second quarter of 2010, internet gambling-related lobbying spend in Washington
DC came in at approximately $4.21m, up 0.3 percent over the preceding quarter.
In all, 43 different special interest groups declared lobbying expenses for internet
gambling bills or issues, according to reports on file with the federal Lobbying Disclosure
Act Database, up from 36 groups in the first quarter.1
The second quarter’s biggest spender was Harrah’s Entertainment, which put forth
$1.02m lobbying numerous bills including Congressman Barney Frank’s licensing
legislation.
By contrast, Avatar Enterprises, a company affiliated with PartyGaming founder Russell
DeLeon, was the quarter’s smallest, putting forth an estimated $2,500 to lobby
“legislation on internet gaming”.
There was no significant legislative movement during the second quarter, although in
late April, a London equity analyst sent ripples through the market after speculating that
Harry Reid, the Senate majority leader, was soon to introduce an internet poker bill.2
[email protected]
Tel: +1 636 236 6319
Overall, online gaming supporters flexed the most financial muscle, accounting for an
estimated $3.37m, or 80.1 percent, of total quarterly spend.
Meanwhile, those neutral on the issue spent an estimated $663,442, or 15.8 percent of
total, and those opposed spent an estimated $171,438, or 4.1 percent of total.
Significantly, a number of Las Vegas operators and federally recognized Indian tribes
began reporting lobbying expenses for Internet gambling – including Boyd Gaming and
the Morongo Band of Mission Indians – indicating increased interest in the issue among
the US’ top brick-and-mortar businesses.
The online gaming lobbying field is fast becoming dominated by gambling operators as
members of the banking industry, and the trade associations that represent them,
reduce spend now that the UIGEA’s compliance deadline has come and gone.3
In fact, operators accounted for approximately $1.57m, or 37.4 percent, of total
quarterly spend.
Six land-based operators, including Wynn Resorts and the Barona Band of Mission
Indians, lobbied Internet gambling, while seven online operators, including PokerStars
and PartyGaming, also declared expenses during the second quarter.
US Internet Lobbying Spend: September 2010
In the third quarter,
GamblingCompliance
expects the number of
expense-declaring operators
– both land-based and online
– to continue rising.
Looking at legislation,
meanwhile, there are seven
internet gambling bills
pending in Congress.
Not surprisingly, Frank’s licensing bill, HR 2267, drew the largest number of interest groups, 27, and unique lobbying
reports, 46.
Trailing HR 2267 was an Internet poker licensing bill sponsored by Senator Robert Menendez, S 1597, which drew 16
interest groups and 28 unique lobbying reports.
In late July, Frank’s bill was reported out of the House Financial Services Committee in a 41-to-22 vote.4 The bill – along
with its tax companion, HR 4976 – will therefore remain the focus of all lobbying efforts across the second half of this
year.
Although the committee vote on Frank’s bill has helped fuel speculation that it will become law this year, for perspective,
it is important to understand that internet gambling has long been a peripheral political issue on Capitol Hill.
Indeed, in the first half of 2010,
the top three internet gambling
issues fared poorly when
compared to the top three political
issues lobbied in Congress.
Using unique lobbying reports as a
measuring stick, the combination
of HR 2267, S 1597 and HR 2266
drew approximately 198 during
the six-month period; by contrast,
the combination of “federal
budget and appropriations”,
“health issues” and “defense”
drew approximately 8,485.
US Internet Lobbying Spend: September 2010
Looking ahead to the second half, GamblingCompliance expects quarterly lobbying spend to approach $5m, a threshold
last crossed in the fourth quarter of 2009, when the banking, poker and racing lobbies5 successfully petitioned to delay
UIGEA’s compliance deadline.
With internet gambling proponents keenly aware that the second half may offer the last chance until January 2013 to
leverage Democratic majorities in both chambers of the Legislature, lobbying budgets are all but certain to expand.
Lobbying figures for the third quarter are due out in mid-to-late October.
US Internet Lobbying Spend: September 2010
Endnotes
1
GamblingCompliance, US Internet Lobbying Spend – Q1 2010, May 26, 2010,
http://www.gamblingcompliance.com/node/42780
2
GamblingCompliance, Reid between The Lines: US Poker Rumors, April 29, 2010,
http://www.gamblingcompliance.com/node/42488
3
GamblingCompliance, UIGEA Deadline Threatens US Racing, May 18, 2010,
http://www.gamblingcompliance.com/node/42706
4
GamblingCompliance, House Committee Votes Decisively For Internet Gambling, July 29, 2010,
http://www.gamblingcompliance.com/node/43808
5
GamblingCompliance, Racing Lobby Secures UIGEA Postponement, November 7, 2009,
http://www.gamblingcompliance.com/node/40490
US Internet Lobbying Spend: September 2010
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US Internet Lobbying Spend: September 2010
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