On the second to last day of the 2008 Congressional session before the August recess in the United States, the House Judiciary Committee held a hearing. Its goal was to discuss a resolution to place Karl Rove in contempt as well as discuss 12 bills for mark up. One of the bills on the agenda was HR 2140, the Internet Gambling Study Act, which was proposed by Congresswoman Shelley Berkley (D-NV). The hearing did not go as planned, however, with the Committee taking most of its time to discuss Rove, who was eventually found to be in contempt. Consequently, Berkley’s bill was not debated. On Thursday, Congress adjourned for the August recess, meaning the online poker world will have to wait until September in order for this, or any, piece of legislation to be discussed.

Poker Players Alliance Executive Director John Pappas commented to PocketFives.com, “We knew the bill was scheduled to come up, but probably wouldn’t be voted on. It was a combination of other priorities of the House Judiciary Committee and that they weren’t 100% confident of the vote count.” Berkley’s bill calls for a one-year study of the effects of the Unlawful Internet Gambling Enforcement Act as well as the feasibility of regulating this immense industry in the United States. The bill was proposed last May and has racked up the most co-sponsors of any piece of internet gambling legislation so far, with 73.

Though the PPA has HR 2140 listed on its website and links to information and news surrounding the Internet Gambling Study Act, the main lobbying arm for the online poker industry does not specifically endorse it. Pappas and company are encouraged by it, as investigating internet gambling is a step in the right direction from its current state of prohibition, but a study is not necessarily prudent. Pappas commented, “We support the legislation, but it’s never been a priority of ours. We believe that this issue has been studied. Developed countries have already begun to regulate internet gambling.”

If internet gambling has been studied at great lengths already, then one would question the study bill’s purpose. What would it tell the United States government that is different fundamentally from other studies that have been performed? Pappas commented that there are “those who would argue that you need a U.S. or Congressional study before Congress can move on it.”

HR 5767, which was proposed by Barney Frank and Ron Paul, was initially postponed when it first came up for mark up by one day. However, Berkley’s bill cannot be addressed until after Labor Day, when Congress returns to Washington, D.C. Between now and then, lawmakers in the United States are in their home districts campaigning for the upcoming election in November and meeting with local officials and residents. Congress has very few calendar days remaining for legislative work this year, which is due in part to the entire House and one-third of the Senate being up for re-election in three short months. Remember that the UIGEA was passed after midnight on the last day of the 2006 Congressional session.

Recently, Berkley and Jon Porter, both from Nevada, scathed Jim McDermott’s “Investing in Our Human Resources Act.” Each was boisterous that the proposed federal gambling tax and distribution of its revenue was unprecedented. Pappas discusses their concerns with HR 6501: “They have a legitimate concern. Once you’ve opened the door to federal regulation and taxation of internet gambling, it will become a ‘Christmas tree’ for however Congress wants to raise tax revenue.”

Land-based casino gambling is regulated on the state level in the U.S. Each state can independently determine what level of gambling it desires to have within its borders. Currently, state statutes range from no gambling allowed to full-blown casinos. Nearly every state has a lottery. Pappas comments on an important distinction that Congress must draw between internet gambling activities and online poker, specifically: “A game like poker relies on every player in every jurisdiction having the same set of rules. Therefore, it must be a federally-licensed activity rather than a state by state regulation.” Barney Frank’s Internet Gambling Regulation and Enforcement Act (HR 2046) allows individual states to opt out of the legislation, but not impose their own rules.

Visit the Poker Players Alliance website by clicking here or surf on over to the Poker Legislation forum on PocketFives to discuss the latest news.