Gambling on Vessels

The Subcommittee met, pursuant to call, at 10 a.m., in Room 1334, Longworth House Office Building, Hon. Walter B. Jones (Chairman of the Subcommittee) presiding.

Members present: Representatives Jones, Hubbard, Borski, Pickett, Hertel, Palone, Taylor, Fields, Miller, and Bentley.

Staff present: Subcommittee on Merchant Marine: Richard J. Daschbach, Counsel; Ann M. Mueller, Clerk; Sharon K. Brooks, Counsel; Charles T. Crangle, Counsel; and Kip Robinson, Minority Counsel; Committee on Merchant Marine and Fisheries: Edmund B. Welch, Chief Counsel.

Mr. JONES. The Subcommittee will come to order.

OPENING STATEMENT OF HON. WALTER B. JONES, A U.S. REPRESENTATIVE FROM NORTH CAROLINA, AND CHAIRMAN, SUBCOMMITTEE ON MERCHANT MARINE

We meet today to receive testimony on two bills, H.R. 5433 and H.R. 5534.

Both of these measures are concerned with gambling aboard cruise ships.

H.R. 5533 provides that only documented vessels of the United States may operate as gambling ships in the territorial sea of the United States. For the purposes of this bill only, the "territorial sea" is extended out to 12 miles.

H.R. 5534 would, if enacted, permit gambling aboard U.S.-flag ships by repealing "The Gambling Ship Act" and making "The Gambling Devices Act" inapplicable to U.S.-flag ships.

These bills are intended to remove the disincentives in U.S. law to capital investment in U.S.-flag cruise ships.

That concludes my statement.

Does any Member have an opening statement?

Mr. Taylor.

OPENING STATEMENT OF HON. GENE TAYLOR, A U.S.

REPRESENTATIVE FROM MISSISSIPPI

Mr. TAYLOR. Thank you, Mr. Chairman.

I want to thank you for having this hearing.

(1)

I realize it is late in the session, but we were granted a few extra days because of the extension of the session.

I appreciate the hearing on these two bills, H.R. 5534 and H.R.

5533.

In our lifetime, America has gone from the world's foremost maritime power to virtually a non-entity in the field.

Last year, 98 percent of all ship construction and 57 percent of all repairs were performed under Department of Defense contracts. A merchant ship has not been built in the United State for three years. I am asking for your help in putting America back on the high seas.

Today we are conducting a hearing on the U.S.-Flag Cruise Ship Safety and Competitiveness Act of 1990, which would allow American-flag vessels to offer gambling as another form of entertainment for passengers.

The legislation is not about gambling, however. It is about creating jobs for Americans and encouraging American businesses to invest in our merchant fleet.

It is well known to many Americans that the United States is a gold mine for the lucrative cruise ship industry.

Americans supply the bulk of the business which industry estimated to generate between $5 billion and $8 billion a year; yet only 2 out of 100 cruise ships fly the American flag.

Every one of those 98 ships has gambling devices onboard and is allowed to cater to our constituents; yet present law prohibits American vessels from having gambling devices onboard sailing in international waters.

Accidents aboard and involving foreign-flag ships have increased; yet under present law, Coast Guard inspections of these vessels is not mandatory.

Foreign-flag vessels are not built in our shipyards. They are not manned by American crews.

When it comes time for maintenance and repair, the work is almost always performed overseas.

The foreign-flag vessels enjoy all the privileges of our ports; yet pay none of the costs.

Under the American flag, construction of these vessels will be done in American to U.S. safety standards.

Contracts to build American vessels will stabilize the shipbuilding industry at U.S. shipyards and improve our economy.

American crews onboard will mean more jobs for our constitu

ents.

At a time of growing defense cuts and when foreign competition threatens the economic well being of our country, Americans must work together to protect and strengthen our maritime industry.

I thank you for joining me in supporting this important legislation.

Earlier we discussed a piece of legislation that I believe will help put America back on the high seas, the U.S.-Flag Ship Cruise Safety and Competitiveness Act of 1990, which would allow gambling as another form of entertainment.

This legislation would allow our constituents to compete in the cruise ship industry and invest in our own merchant fleet.

The second bill I would like to call to your attention would, I believe, help American businesses to complete, The Between the Capes Competitive Revisions Act of 1990.

Since the earliest days of our Republic, the cabotage laws have reserved between the capes commerce solely for American-flag vessels.

Our inland, our seafood and offshore supply vessels all abide by these rules.

However, in the case of cruise ships, the so-called cruise to nowhere has allowed foreign-flagged passenger vessels to provide dockside gambling and yet make one cruise to international waters and skirt these restrictions.

This measure seeks to address that inequity.

We can give American vessels the competitive advantage by reserving solely for Americans the privilege of operating gambling devices between the shoreline and international waters.

This legislation would not prevent foreign-flag vessels from engaging in a normal course of business.

They would be prohibited, however, from operating their casinos in U.S. waters.

On the normal half-day cruise to nowhere that has become very popular off the American shoreline, the first and last hour of operation would normally be conducted in the territorial sea.

Since the foreign-flag vessels could not operate their casinos in this zone, we have extended an advantage to American vessels, enough advantage hopefully to return these American-owned vessels to our fleet.

This measure would in no way infringe on State authority in State waters.

It will, however, ensure that the only people operating gambling devices in State or U.S. waters will be United States citizens.

I hope you will once again join me in supporting this important legislation.

Thank you for this hearing.

Mr. JONES. At this point in time, I would like to, without objection, offer a statement by Hon. Norman Lent into the record. [The statement of Mr. Lent follows:]

STATEMENT OF HON. NORMAN F. LENT, A U.S. REPRESENTAtive from New York, and RANKING MINORITY MEMBER, SUBCOMMITTEE ON MERCHANT MARINE

Mr. Chairman, it is a pleasure to join you in this hearing today on the legislation introduced by our colleague, the Honorable Gene Taylor, addressing issues and problems relating to gambling aboard cruise ships operating out of United States ports.

Although this is a rather controversial issue and one that will require some considerable study, I believe that it is time that the Committee looked at ways to help promote development of American involvement in the cruise ship business. Virtually all cruise ships operating in this country-except for two ships in Hawaii-are foreign-owned, -operated, and -manned. Millions of Americans travel each year aboard these cruise ships departing from U.S. ports. It has always bothered me that there is no U.S. construction or operation of any of the big cruise ships. I am aware of concerns voiced by the operators of the foreign cruise ships. They do not want to be put out of business. On the other hand, I think it is time to look at some of the artificial barriers that may be hindering U.S. companies from getting into the cruising industry.

The question of gambling aboard these ships is one that will have to be looked at carefully because of the potential for unauthorized and illegal activities. However, it

« iepriekšējā Turpināt »

Grāmatas

Gambling on Vessels: Hearing Before the Subcommittee on Merchant Marine of ...