SPORTS LEAGUES MOBILISE AGAINST FRANK BILL
4 May 2007
The reek of self interest grows stronger
The Washington publication The Hill reports that a
coalition of major amateur and professional sports
leagues is urging members of House Financial Services
Committee to oppose legislation unveiled last week by
its chairman Barney Frank that would undo last year’s
crackdown on illegal online gambling by regulating and
licensing the pastime in the USA.
The Hill says that the first stab by the sports industry
at the bill provoked a searing response from one Capitol
Hill staffer, revealing divisions over the Unlawful
Internet Gambling Enforcement Act, which passed the
House overwhelmingly last year in a late night session
immediately prior to a recess, attached to an unrelated
must-pass security bill.
One sports league lobbyist did not mince his words in an
email to members of the Financial Services Committee,
writing:
“Our sports organizations would very strongly oppose any
effort to legalize any online sports gambling,” wrote
Martin Gold, a lobbyist at Covington & Burling who
represents the National Football League (NFL).
“We would also oppose any legislation that would
legalize and regulate non-sports gambling online,
because we do not believe that differential treatment of
sports gambling and other gambling online would be
sustainable in the current environment,” Gold wrote.
The letter, which was signed by five major sports
organizations, including the National Basketball
Association and Major League Baseball (MLB), prompted a
biting reply from Tom Lizardo, chief of staff to avowed
libertarian Rep. Ron Paul (R-Texas), who sits on the
Financial Services panel.
“So the professional sports leagues are directly opposed
to the interests of the fans who pay their bills? Is
there any explanation of this?” he responded the next
day.
According to the e-mail provided to The Hill, Lizardo
continued, “Please don’t tell me something about the
altruism of professional sports, especially the NFL.
Maybe they could spend a bit more time and effort making
sure your retired players are not living in poverty with
the billions you make on the Super Bowl.
“Oh, I see ‘keep government out of pro sports’ but have
it regulate my personal use of my home computer? Nice,”
he concluded.
Norman Singleton, another staffer to Paul, sent the
e-mail to the rest of the committee. Less than two hours
later Gold responded, asking the pair to forward his
reply on to the other members.
Asked for comment, NFL Vice President Joe Browne said,
“Marty Gold’s views represent the position of amateur
and professional sports leagues as well as the more than
300 members [of Congress] who voted for the Unlawful
Internet Gambling Bill last year. That number included
majorities in both parties. I am certain that
Congressman Paul’s views were expressed by his staffer.”
Offshore Internet gaming companies and poker enthusiasts
have led the charge in opposition to last year’s
crackdown, which made it illegal for credit cards and
banks to make payments to online gambling companies.
Frank’s bill would set up a regulatory scheme to allow
Internet gambling by adults through companies registered
with the U.S. Treasury.
Critics of last year’s crackdown on online gaming
complain about a carve-out in the legislation for
fantasy sports leagues, which they say bear a close
resemblance to sports betting.
“You ask any 10 guys who are in a fantasy league, they
don’t play for a color television, they play for money,”
one online gambling industry lobbyist asserted.
The fantasy leagues not only produce millions of dollars
for MLB; they also stir interest in baseball, football
and other sports, he added. “I just think it’s somewhat
hypocritical that they stand up and say, ‘We don’t want
betting on the sport’ when these fantasy leagues drive
revenue.”
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