Congress Passes Online Gambling Legislation

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Congress Passes Online Gaming Legislation

by Tom Sangenito

In a move that is considered to be quite sneaky, Senate Majority leader Bill
Frist added the Unlawful Internet Gambling Enforcement Act on to the
popular Safe Port Act bill. On Saturday, Setember 30th, Congress passed the
online gaming bill which makes it illegal for banks, credit card companies and
online payment systems to process payment to online gambling companies.

Surprised by the passage of this bill, the online gaming industry is already
being effected. On Monday, online gambling companies realized huge losses
on stock prices and billions of dollars in market value was lost. Most notably,
Party Gaming, Sportingbet, and 888 Holdings stock prices plummeted in
reaction to the online gaming bill. PartyGaming, which runs Party Poker, lost
60% of it's share value on heavy trading on the London Stock Exchange. 888
Holdings, which owns Pacific Poker, lost 48% of it's share value in the British
market. Sportingbet shares dropped 67%.

President Bush is expected to sign the Unlawful Internet Gambling
Enforcement Act by early November and as early as October 4th.

In response to the passage of this bill Pacific Poker and Party Poker has
announced that they will no longer take bets from U.S. customers when the
law takes effect.

Here is a statement from Party Poker through their affiliate web site:

"On September 30, 2006 the United States Congress passed The Safe Port
Act. That measure also contained certain provisions known as the ‘Unlawful
Internet Gambling Enforcement Act of 2006’. On October 2, 2006 PartyGaming
made an announcement regarding the impact, the Act would have on
business when, as expected, it is signed into Law."

"What is the impact of the Act on our business?"

"PartyGaming will no longer accept wagers from US Customers once the Act
becomes Law."

"Customers residing in the United States or accessing us from the U.S. will no
longer be able to access our real money gaming services. Customers will still
be able to use the play money and any non-gambling services we may offer.
They will also be able to cash out their present balance if they wish to."

"There will be no impact on non-US customers."

"A detailed FAQ on impact to US customers will be available on our gaming
websites very shortly."

Full Tilt Poker, endorsed by players such as Howard Lederer and Phil Ivey,
has stated that they will continue to take bets from poker players living in the
United States. They have mentioned that the banks will have 270 days to
implement the new rules. Full Tilt Poker has informed all their customers that
the will be no effect on their poker site in the short run. Full Tilt mentions that
the bill will not criminalize players for playing online poker.

Kris from Poker.com recently made these statements on the subject:

"I just wanted to make a brief statement regarding Poker.com's thoughts on
the recent Internet Gambling Prohibition act recently passed by legislators in
the United States Congress. The act was deceptively attached to a totally
unrelated Safe Port Bill, with no time for discussion or debate on it's merits,
forcing the hand of all members of Congress who had no choice but to pass
the Safe Port Bill as it was a matter of national security."

"The passing of this act through congress will have no immediate affect on
operations at Poker.com. We are not currently planning to close the accounts
of US players, and all funds within player accounts are perfectly safe and will
always be readily accessible. It is worth noting that the act is primarily
related to financial transactions between gaming businesses and banks and
no penalties have been introduced to to discourage individual citizens who
wish to play poker online. We will continually monitor the legislative changes
and obtain detailed legal advice on this situation, but for now it is business
as usual."

"As far as we are concerned our operations are 100% legal under
international law and we follow all laws of the jurisdictions in which our
operations reside."

"At the moment we encourage all Poker.com members to join the Poker
Players Alliance, and to contact your government representatives to voice
your opinion on the potential Internet Gambling Prohibition law."

"Citizens of the USA, do not allow your great country to be run in this way.
Force your politicians to act with integrity by making your opinion heard."

UltimatePokerForum.com will be keeping close tabs on the new internet
gambling law, so come back often to get all the latest updates.

New Internet Gambling
Law Passed by Congress

Online Poker sites reacted
quickly and Party Poker and
Pacific Poker stated they will no
longer accept wagers from
customers residing in the
United States

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