Posts Tagged ‘internet gambling’

PPA Praises Passage of H.R. 2267, Internet Gambling Regulation Bill

Wednesday, July 28th, 2010

PPA Praises Passage of H.R. 2267, Internet Gambling Regulation Bill

Washington, DC (July 28, 2010) – The Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide, today applauded passage of H.R. 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, by the House Financial Services Committee. The bipartisan 41-22 vote demonstrates that sensible regulation of Internet gaming is gaining support in Congress while prohibition continues to fail.

“The fact is, online poker is not going away. Congress has a choice – it can license and regulate it to provide government oversight and consumer protections, or our lawmakers can stick their heads in the sand, ignore it, and leave consumers to play on non-U.S. regulated websites in all 50 states,” said Former Senator Alfonse D’Amato, chairman of the PPA. “I’m glad the Financial Services Committee today overwhelmingly chose to act and protect Americans as well as preserve the fundamental freedoms of adults and the Internet.”

Sponsored by House Financial Services Committee Chairman Barney Frank (D-MA), H.R. 2267 establishes a robust licensing and regulatory regime for online gaming in the United States, providing much needed oversight on this growing industry in order to protect consumers, children and problem gamblers. By using the most modern technologies and regulatory authority, this bill goes further than the ineffective Unlawful Internet Gambling Enforcement Act (UIGEA) to keep children and problem gamblers off these sites, at the same time allowing for strong consumer protections for adult consumers who enjoy this recreational activity.
Additionally, licensing and regulation presents an avenue for companies to return to the U.S., providing the economy with much needed jobs and tax revenue. The bill was further strengthened by several bipartisan amendments that provide even greater consumer protections and strong enforcement against unlicensed operators, something that the current law (UIGEA) lacks completely.

“We commend the lawmakers who helped make H.R. 2267 stronger through a variety of consumer protection mandates. In particular, we thank Representatives John Campbell (R-CA), Mary Jo Kilroy (D-OH), and Melissa Bean (D-IL) for their thoughtful additions to the bill and their interest in preserving the rights of adult poker players in their districts,” said John Pappas, PPA executive director.

While the bill has passed out of Committee, there is still much work to be done and areas of policy in this bill that must still be addressed. To be clear, despite the concerns of some of our members, nothing in the Committee-passed legislation precludes lawful Internet poker-only operators whom U.S. players know and trust today from the opportunity to operate under a regulated system. The PPA will work with House and Senate lawmakers to ensure that the final legislation produces the best regulated online gaming environment for the consumer.

“This is a great day not only for poker players, but for proponents of Internet freedom and individual liberty,” said D’Amato. “We thank Chairman Frank for his leadership on this bill, and look forward to working with him to bring this bill through the legislative process.”

Key provisions of the bill include:

· Thorough vetting of potential licensees and creation of an OFAC-style list of illegal operators;

· Mandatory implementation of technologies to protect against underage gambling using the commercial and government databases used for online banking to verify age and identity

· Requirements for operators to set daily, weekly or monthly limits on deposits and losses
to monitor and detect individuals with excessive gaming habits;

· High standards to thwart fraud, abuse and cheating to ensure fair games for customers;

· Regulation to prevent money laundering; and,

· Processes to prevent tax avoidance.

For a complete listing of how each representative voted on HR 2267, click on the link below:

HR 2267 Financial Services Committe Vote (07/28/2010)

Online Poker Legal? Poker Lobbyists Push to Legalize Internet Gambling

Sunday, February 7th, 2010

Partly backed by offshore gambling companies, poker lobbysists are aggressively pushing to legalize Internet gambling in the United States this year. Bankrolled with millions of dollars the campaign is hoping to make progress despite strong objections from social conservatives, sports leagues and other opponents.

Poker advocates have already convinced the Obama administration to delay enforcement of the 2006 law making Internet gambling illegal.

Poker and other online games have become hugely popular in the U.S. over the last several years and it is believed that the United States accounts for more than half of the $16 billion Internet gambling market. Proponents say that regulating Internet gambling would net the federal government millions of dollars in tax and licensing revenue if it were legalized. Using the six-month reprieve of the 2006 law, Rep. Barney Frank (Mass.) and other Democrats are pushing ahead with legislation that would legalize and regulate poker, mah-jongg and other online gambling games.

Proponents of online gambling are hoping that with Congress in the hands of Democrats, who have historically been less opposed to gambling than Republicans, and the growing popularity of recreational poker will work to their advantage.

A list of proponents include Frank and former Republican senator Alfonse M. D’Amato (N.Y.) D’Amato is the chairman of the Poker Players Alliance, which is spearheading the Capitol Hill push. The Poker Players Alliance has approximately 1.2 million members and is largely financed by by the Interactive Gaming Council, a Canada-based trade group for offshore gambling companies. The campaign has spent over $4 million lobbying Washington over the past year, and the alliance says its members have sent more than 300,000 letters and e-mails to members of Congress.

“I think there’s a growing realization in Washington that prohibition probably isn’t going to work, just like prohibitions throughout history have not worked,” said John Pappas, the poker group’s executive director. “There needs to be a more common-sense approach, because it’s not going away.”

The Justice Department considers all online gambling as illegal under a 1961 law that was aimed at bookies using telephone lines. The online gambling market is run largely by firms operating in Antigua, Malta and other foreign countries. The Justice Department has only prosecuted a few of the Internet wagering companies.

The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 was supposed to eliminate any ambiguity in the laws. The UIGEA bans U.S. banks from accepting payments from credit cards, checks or wire transfers to settle online wagers. The measure waas scheduled to take effect Dec. 1.

However, as the enactment deadline approached, gambling interests joined by banks and other financial institutions urged that it be delayed. They said the statute was vague and unenforceable. Thoroughbred horse racing organizations also opposed the law when some credit card companies refused to process online parimutuel wagers, which were supposed to be exempt from the law.

The Treasury Department and Federal Reserve granted a six-month delay in December, citing efforts by Frank and others to draft new legislation. The Obama administration is officially neutral on the issue.

Frank’s proposed bill is set for committee markup in coming weeks. It would establish federal oversight of online gambling firms in exchange for five-year licenses that would include protections aimed at keeping out underaged players, compulsive gamblers and criminal activity.