An About Face for Senator Wyden Regarding Health Care Funding

September 25, 2009 | News Category: Gaming Law

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A United States Senator from Oregon, Senator Ron Wyden, recently publicized a suggestion that online casinos be legalized in order to use the taxes, that would be generated from the online casinos, for health care funding. Although this suggestion was welcomed in a number of sectors, not least the online casino community, Senator Wyden has dropped his suggested amendment to fund the health care subsidies from revenue which would be obtained from online gambling.

Last week, Senator Wyden proposed that the money raised from online casino taxes, were they to be legalized and regulated, could be used to pay for the costs of health care for low-income families. Health care advocates and those who support the legalization and regulation of online casinos felt that two of the causes that are important to the US public were tied together by Senator Wyden, and could solve problems for both sides.

Wyden, however, decided to drop the suggestion, noting that he did not want to add to the controversy that already surrounds the health care package. It seems that Senator Wyden was urged by the Democratic leadership not to connect the health care and online gambling issues to each other.

Jennifer Hoelzer, Wyden's communications director said "The last thing Senator Wyden wants to do is make it more difficult to expand subsidies for working families by introducing a new contentious issue to the debate."

A Nevada Senator, Senator Harry Reid, is the Senate Majority Leader. Senator Reid receives substantial support from the land-based casino industry for campaigning. At this time, the land-based casino industry holds mixed feelings regarding the regulation of the online casino industry. Revenues for land-based casinos have dropped radically since the financial crisis began. Some land-based casinos have plans to open their own online casinos should the online gambling industry be legalized and regulated.

A spokesperson for Senator Reid, Regan LaChapelle made a statement regarding the issue of combining the issues of health care and online casinos. LaChapelle said "Changing the laws regarding online gaming is a significant detour from health care, a detour that Senator Reid agrees is not appropriate at this time."

The authors of the online gambling bills which are in support of regulating and legalizing online gambling in the United States, Barney Frank and Jim McDermott, had only praise for Wyden's original amendment.