Washington Online Gaming Hearing Outcome

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The hearing convened by Finance and Revenue committee chairman Jack Evans to discuss certain issues of the Washington D.C. online gambling bill was followed with interest by the industry across the globe. The issues included the legality, practicalities and propriety of legalizing online gambling in the District. The online gambling bill was included in a supplemental budget December 2010, without any hearing or notice. Washington D.C. Mayor Vincent C. Gray wanted to understand how the online gambling initiative would be regulated before deciding whether he would support it.

On the issue of legality, the District's Attorney General Irvin B. Nathan confirmed that the proposal of intrastate online gambling was legal beyond doubt and that it complied with the US federal laws. Hence D. C. Lottery could proceed toward its September 8 launch date with the required continual monitoring. This will be picked up by the other US states contemplating legalization of online gambling.

Councilor Brown addressed the allegation that adequate notice was not give. He said that the bill was introduced four months before it was voted on and that is sufficient time. He stressed that most of the councilors were aware of the proposal they were voting for. He added that there may have been some councilors who had not gone through the budget.

The bulk of the testimony was offered by Buddy Roogow, executive director of the D.C. Lottery. He outlined the measures that were being taken to ensure that the District's citizens gambled in a responsible manner. No player would be allowed to deposit more than $250 per week. Payments could be made only through debit cards to prevent players gambling with borrowed money. Facilities for player self exclusion was built into the software. Online gambling would not be available between 4 AM and 10 AM. D.C. Lottery would verify the age and Internet Protocol address of every player. The hot spots from where players could wager would be rooms in hotels or other establishments that offer a wireless Internet. They would not be placed in public spaces, such as libraries, schools and recreation centers. The wagering patterns of players would be monitored electronically and those who did not gamble responsibly would be cut off.

In response to queries on the financial aspects of the proposal, the District's Chief Financial Officer Natwar M. Gandhi said that the estimate of revenue of $13 million over a four year period was a conservative one and that he was confident that it would be achieved. Some of the speakers suggested that a part of the receipts should be earmarked for gambling-addiction services or other priorities in the District.

Evans concluded that nothing is a done deal. Any law that is passed can be un-passed. The D.C. Lottery can delay the start date, if it feels that it is not ready.

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