ST. CROIX - When it meets later this month, the Casino ControlCommission is expected to adopt a set of Internet gamblingregulations drafted by the commission's staff.
The meeting date has not been set. But when it is, the commissionwill consider a 38-page draft of rules governing everything from whocan set up Internet gambling operations to what kind of games theycan run to what equipment they can use and who is eligible to play.
Those who developed the regulations say it has been no small jobbecause there is a lack of similar regulation in the states andbecause the federal government has not clearly said whether Internetgambling is legal.
The Legislature voted to legalize Internet gambling in August2001 and amended the law in June. The law requires the CasinoControl Commission to move ahead with regulations, the chairwomanand the executive director of the commission have seriousreservations about Internet gambling.
One is the U.S. Wire Communications Act.
"That is a major stumbling block to Internet gambling," EileenPeterson, chairwoman of the commission, said Friday.
In August, the Criminal Division of the U.S. Justice Departmentwrote a "guidance letter" to the Nevada Gaming Control Board.
"As set forth in prior congressional testimony, the Department ofJustice believes that federal law prohibits gambling over theInternet, including casino-style gambling," said the letter, writtenby Assistant Attorney General Michael Chertoff.
Shawna Richards, executive director of the Casino ControlCommission, explained that a guidance letter from the JusticeDepartment is not the final word on the legality of Internetgambling.
Despite the letter, the House of Representatives this year passeda bill that would make it illegal for Internet gambling companies toaccept credit cards. The Senate has not acted on the legislation,but the fact that Congress is considering its own regulations of anindustry that the Justice Department says is illegal illustrates howunsettled the issue is.
In addition to murky federal laws, Peterson and Richards say theyhave had to contend with several flaws in the territorial lawcreating Internet gambling.
"I am seriously troubled by the amount of license fees they haveto pay," Peterson said of the "master-service providers": the twocompanies that will be licensed to run Internet gambling operationsin the territory.
Under the law, they are required to pay $25,000 apiece for three-year licenses. By comparison, Divi Carina Bay Casino pays $150,000for a two-year license.
Peterson said the licensing fees required of the Internetcompanies will not cover the commission's cost to regulate them.
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