Polity - Written by admin on Monday, December 1, 2008 12:58 - 0 Comments

Lobbyist in Push to Curb Online Gambling Faulted

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is playing a controversial role in the Bush administration’s last-minute effort to implement a ban on many forms of Internet gambling before the end of the president’s term, according to congressional and administration sources.

"He appropriately sought and received clearance from ethics officers to be able to work on this rule," Perino said, adding, "I know our ethics officers to be professionals who know the law and the guidelines inside out." She said last night that she could not immediately reach the officers to learn their reasoning in this case.

The 2006 law at the center of the White House review has been of intense interest to the NFL. With the league’s support, it was tacked onto unrelated legislation, meant to upgrade counterterrorism measures at U.S. ports, in the waning hours of the congressional session that year and approved without getting a separate vote in the House or Senate.

Ever since, the measure has been attacked as unwieldy or unworkable by banks and the Internet gambling industry, now based mostly overseas and bringing in many billions of dollars each year. A top official of the Federal Reserve Bank testified in April that, due to the difficulties of pinpointing illegal gambling transactions amid the huge flows of funds online, "the ability of the final [implementing] rule to achieve . . . [its goals] is uncertain."

, have sponsored alternative measures that would regulate and tax Internet gambling, rather than ban it altogether. But they have been thwarted by Republicans who have depicted the existing law as a way to safeguard morals and stop personal misspending.

The NFL’s general counsel, Jeffrey Pash, urged lawmakers in March to "support the integrity of American athletics" by rejecting Frank’s bill or any other alternative to the existing legislation. But Internet gambling officials have long maintained that the NFL’s real motivation is to block any competition for lucrative "fantasy football" gambling via the Internet, which was explicitly exempted from the 2006 ban.

The NFL provides statistics, logos and player information to fantasy leagues that pay substantial royalty fees, industry sources say. It backed the exemption on grounds that fantasy football is a game of skill, not chance.

on Friday to express concern that the "impetus for the rule may have been a particular White House employee who has a clear and obvious conflict of interest." Cohen said he had been told that Wichterman "has been a source of considerable political pressure to speed this regulation through to finalization."

A phone call to Wichterman, seeking comment, was returned by a White House press aide, who declined to add to what Perino said.

See who is giving to the ‘08 presidential candidates.

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