04/26/2012 : REID-KYL STILL WORKING ON INTERNET POKER
 
But legalization may mean a federal ban on internet gambling generally
 
Rumours of a federal online poker legalization bill emerging from an unlikely Democrat – Republican partnership between Sens. Harry Reid of Nevada and Jon Kyl of Arizona have been circulating for at least a year or more, but this week again surfaced.
 
According to sources who claim to have been briefed on the collaborative effort, the two are still working on the measure….but the result may not be all that the online gambling industry as a whole would welcome.
 
The word is that the downside of the deal (depending on your perspective) is that a federal ban on online gambling generally may be the quid pro quo for Kyl's support for legalised online poker – hardly surprising given Kyl's long record as an implacable opponent of internet casino action.
 
How that will sit with individual states that have traditionally defended their right to make laws on gambling is uncertain, especially given the recent enthusiasm that states have shown for the possibility of online gambling revenues in the wake of the US Department of Justice's about-face on the Wire Act.
 
The venerable Wall Street Journal reported on the rumours this week, noting that it is not yet known whether the Kyl-Reid team has plans to launch their bill in Congress this year or not.
 
Perhaps an indication of the line the duo are taking was given last year, when they jointly wrote to Attorney General Eric Holder voicing their opposition to attempts by certain states to legalise intrastate online gambling, a communication that was roundly criticised by the pro-internet gambling Senator from New Jersey, Ray Lesniak