FOR IMMEDIATE RELEASE:

October 21, 1998

Congress Strips Internet Gaming Prohibition From Final Budget Bill

Responding to concerns from the technology community, House and Senate adjourn without adopting feel-good, but unenforceable, Kyl bill.

(WASHINGTON, D.C.) - Heeding the advice of the United States Department of Justice, the internet industry, regulators, and fantasy sports fans, Congress adjourned for 1998 after stripping language from major legislation that would have attempted to prohibit internet gambling.

The language, introduced by Arizona Senator Jon Kyl (R), would have made the placement of any "bet or wager" over the internet a federal felony. Included in this broad definition of gambling would have been innocuous activities such as fantasy football, rotisserie-league baseball, fantasy investment challenges, and other traditional games of skill. It would have also prohibited on-line contests sponsored by NASA, the National Science Teachers Association, and other educational groups.

The Kyl language was viewed as largely unenforceable by internet experts. In addition, industry and consumer groups protested passage of the legislation on the grounds that it could have the perverse effect of exposing minors to inappropriate internet content.

Sue Schneider, chairman of the Interactive Gaming Council ("IGC"), one of the groups leading the fight against the prohibition of internet gaming, explained: "The Kyl bill would have forced responsible operators of internet games in other legal jurisdictions underground. In doing so, it would have eliminated any incentives for operators to keep children out of gambling sites."

Other opponents of the Kyl legislation were concerned that criminalizing such conduct would lead to unprecedented intrusion into Americans' homes and home computers - areas where individuals have a legitimate expectation of privacy.

The IGC has called for a global regulatory mechanism to ensure that all games are fair, minors and problem gamblers are screened out, appropriate taxes are paid by both operators and consumers, and the privacy of individuals is protected.

"Almost fifteen percent of the world's governments already recognize and permit some form of interactive wagering. I am hopeful that the U.S. Congress will recognize that the best way to protect the interests of American businesses and individuals is to impose a strict, but fair regulatory regime instead of an unenforceable prohibition," said Schneider.

For more information, or to arrange an interview, please contact IGC Chairman Sue Schneider at: (314) 946-0820. or via email at .