The momentum has picked up in the online poker world. On Wednesday, April 2nd, the House Financial Services Committee held a hearing discussing the detrimental impact of the Unlawful Internet Gambling Enforcement Act on the banking industry. Charged with enforcing vague UIGEA regulations, banks may soon be obligated to examine transactions scrupulously, else risk repercussions from the federal government. There is hope, however, for online poker players. Congressman Barney Frank (D-MA) not only was instrumental in holding the hearing, but also authored of the Internet Gambling Regulation and Enforcement Act, HR 2046. Discussed in part during the committee hearing, the IGREA seeks to create a licensing framework for legal gambling in the United States. Just a week removed from the House hearing, Congressman Frank joined the PocketFives.com Podcast.

At the center of the hearing was an in-depth discussion that exposed the UIGEA’s flaws. Congressman Frank commented to PocketFives.com, “I was pleased by the hearing itself. What we learned is that the proposed regulations that are being drafted to carry the law out are very burdensome and are strongly opposed by the banks and the financial institutions. We’re talking about people who have to run the financial system.” A representative from Wells Fargo stated at the hearing that the mammoth financial institution processed 11 million checks every single day. Imagine being charged with going through each transaction, one by one, to determine what’s legal and what’s not. It’s impractical.

The hearing also brought to light the strain that currently exists on the financial industry. Amidst one of the biggest mortgage crisis in U.S. history, banks will have to enforce a law that isn’t clear. Congressman Frank explains, “They decided when trying to get rid of gambling to take the banking system and make them the sheriff. What the banking system is saying is that you’re screwing up the whole system just to get this one piece that you don’t like. The hearing was helpful to demonstrate not just that these regulations are a problem, but that given what the people behind this bill were trying to do, there’s no good way to do these regulations.”

Given 2008 is an election year, there are a lot of different demands each Congressman must weigh. After all, when you’re up for re-election every two years, it’s not easy to focus solely on law-making. PocketFives.com asked Congressman Frank what chances his bill or any other pro-online gambling bill have of being passed during the 2008 calendar year. He optimistically responded, “2008 is a Presidential election year. That means we’re going to have to take a couple of weeks off towards the end of the summer for the Democratic and Republican Conventions. With everyone eager to campaign, we’re probably not even going to be in session after the first of October, so it’s a time problem. On the other hand, that hearing was very helpful. The hearing was so critical and so many members joined in the criticism that I now think something might be possible. I doubt that we’ll get it all the way through and I think President Bush has promised the right-wing religious groups that he’ll veto any change, but I think we can make some progress so that next year we’ll be able to do it very quickly.”

A target of the beginning of 2009 to pass internet gambling law that makes sense would be a welcome sight for online poker players everywhere. With pressure coming from all directions, however, the “target” could become more realistic. Take the letter that Congressman Frank and former Presidential candidate Ron Paul wrote to U.S. Trade Ambassador Susan Schwab. At issue was an agreement struck between the United States, European Union, Japan, and Canada for compensation the U.S. had to pay for outlawing foreign gambling operators from soliciting U.S. customers. Congressman Frank explains, “The bill we passed violated the America’s obligations under the World Trade Organization because it was very discriminatory. Our trade agreements say is that we can’t prevent other people from carrying on activities. The WTO found us to be in violation of our treaty obligations because of this. It’s interesting that the Bush administration is pro-trade, but here they’ve supported a bill that violates our treaty obligations. When you violate obligations, one of the options you have is to buy your way out of it. America is paying Europe and Canada and Japan to ban gambling. It’s crazy. Then they wouldn’t tell us how much. They said it was national security. Congressman Ron Paul and I said that it’s bad enough that you want to ban gambling, but now you’re paying other countries for the privilege of doing it. We want to know the price tag for doing that. We’re going to insist that they tell us.”

If you want to make your voice heard, there are several ways to do so. First, get registered to vote. As Shelley Berkley once said on the PocketFives.com Podcast, “If you don’t vote, you don’t count.” Second, join the Poker Players Alliance. They are the true champions of the online poker cause and you can join within a matter of minutes at www.pokerplayersalliance.org.

With so much at stake, it’s shaping up to be an action-packed summer for the online poker industry. Catch yourself up on the Congressional hearing with Congressman Barney Frank on the PocketFives.com Podcast.