The horse racing industry also supported the bill because of the exemption it would get. Betting operators would not be prohibited from any activity allowed under the Interstate Horseracing Act. That law written in the 1970s set up rules for interstate betting on racing. It was updated a few years ago to clarify that betting on horse racing over the Internet is allowed.

Greg Avioli, chief executive officer of the National Thoroughbred Racing Association, said the mention of horse racing in the bill is “a recognition of existing federal law,” not a new carve-out.

He said the racing industry has a strong future in the digital age and acknowledged the bill would send Internet gamblers to racing sites. “They’d return to the one place they can bet legally,” Avioli said.

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That’s what some critics say is unfair.

“Somehow we find ourselves in a situation where Congress has gotten in the business of cherry-picking types of gambling,” complained Rep. Robert Wexler, D-Fla. Wexler had tried unsuccessfully to include exemptions for dog racing and jai alai, both popular in Florida.

The Justice Department has taken a different view on the legality of Internet betting on horse races. In a World Trade Organization case involving Antigua, the department said online betting on horse racing remains illegal under the 1961 Wire Act despite the existence of the more recently passed Interstate Horseracing Act.

The department hasn’t actively enforced its stance, but observers say it is possible the agency and the racing industry could face off in court in the future.

Sen. Jon Kyl, R-Ariz., is leading support for the ban in the Senate. The issue has so far not been debated in that chamber this year.

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