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F I S C A L I M P A C T R E P O R T

SPONSOR Luján, B.

DATE TYPED 2/21/05

HB 648

SHORT TITLE Prohibit Account Wagering

SB

ANALYST Medina

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Companion to HB 719

SOURCES OF INFORMATION

LFC Files

Responses Received From

Gaming Control Board (GCB)

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of Bill

House Bill 648 amends 30-19-15 NMSA 1978 to prohibit account wagering. The bill makes it

unlawful to receive, transmit, or forward information of anything of value to place a bet or to as-

sist in the placing of a bet through the use of a system of account wagering, whether or not the

account wagering system is located in New Mexico.

The bill further amends the statutory definitions relating to gambling to include “account wager-

ing”. Account wagering is defined as a system of betting in which an individual deposits money

in an account ant then uses the account balance to pay for bets placed in person, by telephone or

by other electronic means, including by internet, wire or cable.

Significant Issues

Due to technological advancements, account wagering is becoming a growing phenomenon na-

tionwide. Violation of the prohibition on account wagering is a fourth degree felony. According

to the Gaming Control Board, law enforcement or gaming regulatory agencies with law en-

House Bill 648 -- Page 2

forcement power will need to train individuals in the area of computer forensics.

ADMINISTRATIVE IMPLICATIONS

Investigative personnel of GCB would need to be trained to conduct investigations on account

wagering, specifically in computer forensics.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

There would continue to be not prohibition of account wagering. Law enforcement would have

no effective means to stop individuals from betting within New Mexico using an account balance

by means of telephone, internet, wire, or cable to venues outside of the state.

DXM/yr