Washington ( CNN ) -- Senate Majority Leader Harry Reid , D-Nevada , may have to fold his efforts to push a measure legalizing online poker in the United States into a tax-cut bill , in light of strenuous opposition from Republicans . Such a provision would greatly benefit some of Reid 's biggest campaign backers -- those in the gaming industry , which has been lobbying for the change . But when Reid was asked Wednesday afternoon whether he was still pushing the poker bill during the congressional lame-duck session , he said , `` We are still working on it , '' according to this office . Democratic and Republican sources had told CNN Reid was pushing for the provision to be included in the bill to extend the Bush-era tax cuts . One of those leading the opposition is Sen. Jon Kyl , R-Arizona , who vowed to block any attempt to include the poker legalization in the tax bill . Wednesday afternoon Kyl told CNN the measure was dead , saying , `` Senator Reid has agreed with me that it will not happen . '' Reid 's office refused CNN 's request to discuss his push for the legalization . The support by the four-term Nevada Democrat , who won re-election in November , for the online poker measure is an apparent reversal . When Congress addressed online betting in 2006 , Reid opposed its legalization . Some House Republicans also bristled at news Reid was attempting to shoehorn the Nevada-friendly legislation into the tax deal . `` Creating a federal right to gamble that has never existed in our country 's history and imposing an unprecedented new tax regime on such activity require careful deliberation , not back-room deals or earmarks for special interests , '' Republican Reps. Spencer Bachus of the Financial Services Committee ; Dave Camp of the Ways and Means Committee and Lamar Smith of the Judiciary Committee wrote last week to Reid and Senate Minority Leader Mitch McConnell . Between 2005-2010 Reid 's campaign and his leadership political action committee received $ 224,450 from MGM Resorts and $ 113,450 from Harrah 's Entertainment , making them some of his largest contributors , according to the non-partisan Center for Responsive Politics , which tracks the influence of money in politics . MGM and Harrah 's did not respond to requests for comment . `` It sure looks like payback , '' a Republican congressional official told CNN . According to a draft of the proposed measure obtained by CNN , large , established gambling companies would be the biggest winners if the legislation passed . It would legalize online poker basically only in Nevada and New Jersey . The draft bill says that online poker could be offered only by businesses that have 500 or more slot machines in the same building . That includes huge casinos in Nevada and New Jersey and would make ineligible most Indian-land casinos and even long-standing poker places throughout California because they do n't have slot machines . Seventy percent of the revenues from a new internet gambling trust fund would go to the states sponsoring the poker , presumably Nevada and New Jersey . Only 30 % would go to any of the other states where the person playing is based . Also the proposal includes new rules that would make it easier to bet on horse races . Republican congressional officials suspect that is an attempt to entice support from the senator from the biggest horse-racing state , Kentucky -- Mitch McConnell .
Sen. Reid of Arizona pushes legalizing online poker in some circumstances . A measure would legalize online poker basically only in Nevada and New Jersey . Reid has encountered strenuous opposition from Democratic . four opponent , Sen. Jon Kyl of New Jersey , says the measure is dead .