On the recordJuly 23, 1998
The use of such support services does not change the result assuming the account wagering system meets the requirements for a ``closed loop subscriber-based service that is wholly intrastate.'' As stated previously, the location of the totalizator, path of the phone lines, or the site of other similar support systems is irrelevant. Nonetheless, many are concerned that this legislation will be difficult to enforce. If the only entities that obey it are the legitimate, state-licensed parimutuel operators, which they will, while others outside the jurisdictions of the federal and state authorities do not, then you still have the potential for consumer fraud while not producing any revenues for the federal government, state governments or the racing industry itself.
Source
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