The following is a press release concerning legislation Congressman Barney Frank (D-MA) introduced on Thursday, April 26, 2007, concerning internet gambling. It is taken in its entirety from:
http://www.house.gov/apps/list/press...ss042607.shtml.

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Washington, DC - Rep. Barney Frank (D-MA) today introduced H.R. 2046, the Internet Gambling Regulation and Enforcement Act of 2007 that would create an exemption to the ban on online gambling for properly licensed operators, allowing Americans to lawfully bet online.

The Act establishes a federal regulatory and enforcement framework to license companies to accept bets and wagers online from individuals in the U.S., to the extent permitted by individual states, Indian tribes and sport leagues. All such licenses would include protections against underage gambling, compulsive gambling, money laundering and fraud.

“The existing legislation is an inappropriate interference on the personal freedom of Americans and this interference should be undone,” said. Rep. Frank.

In 2006, the House passed the Unlawful Internet Gambling Enforcement Act, restricting the handling of payments by U.S. financial institutions for unlawful forms of Internet gambling. That law prohibits the use of payment instruments by such institutions to handle the processing of any form of Internet gambling that is illegal under U.S. federal or state law.

Traditional forms of legalized gambling already exist in nearly every state. By continuing to prohibit Internet gambling in the U.S., the U.S. has left Americans who choose to gamble online without meaningful consumer protections. The proposed legislation would institute practical and enforceable standards to bring transparency to Internet gambling and provide consumers the protections they expect and deserve.

The Financial Services Committee will hold a hearing entitled, “Can Internet gambling be regulated to protect consumers and the payments system?” at a date to be determined in June, 2007.

Q&A About the Internet Gambling Regulation and Enforcement Act of 2007:

LICENSE REQUIREMENTS

How will the government ensure that the proper consumer protections are put in place?

No applicant would receive a license unless the following requirements with respect to any Internet bet or wager, at a minimum, are met:

• Safeguards to ensure the individual placing the bet or wager is 18 years of age or older

• Safeguards to combat fraud and money laundering and compulsive gambling

• Mechanisms to ensure all appropriate taxes and fees are collected from individuals and the licensees

• Safeguards to ensure that the individual placing the bet or wager is physically located in a jurisdiction that permits that form of Internet gambling

What safeguards would be implemented to ensure that licenses are granted only to qualified Internet gambling operators?

Applicants for a license would be required to provide comprehensive financial statements and corporate structure documents, and to agree to be subject to U.S. jurisdiction and all applicable laws related to Internet gambling. No license would be granted to any applicant convicted of a criminal violation of any law relating to gambling, money laundering, fraud or other financial laws. Licensing would be handled by the U.S. Treasury through its anti-money laundering agency, the Financial Crimes Enforcement Network (FinCEN).

CONSUMER SAFETY

How does the bill protect consumers?

The framework set forth in the bill would for the first time effectively regulate Internet gambling, thus making it possible to address underage and compulsive gambling, neither of which are prevented under prohibition regimes. Regulation combined with proven technology would establish a system of effective controls to block children and compulsive gamblers from gambling.

How can restrictions against underage Internet gambling be enforced?

Existing technology can enforce requirements that licensed Internet gambling operators restrict minors’ access to Internet gambling. For example, when registering at a gambling site, the customer would be required to provide a range of information including name, address, date of birth, telephone number and details of an identity document, such as a driver’s license or social security number. This information would then be passed on to the Payment Service Provider (PSP) and run through the Know Your Customer (KYC) system to confirm that the data being provided matches against several separate sources of information and is in fact accurate. The operators may also have KYC systems in place.

Operators could also request a physical copy of documentation, such as a utility bill and/or a copy of the customer’s identity document, for further verification.

Is it possible to identify and enforce restrictions on compulsive gambling?

There are a number of techniques that can be used, from systems that limit the total amount of funds that may be wagered based on credit limits, to the use of public databases that include details used to identify persons who have chosen to exclude themselves from online gambling. Customers could be added to this list at their own request.

Additionally, limits can be placed on the number of transactions a customer can put through on a daily, weekly and monthly basis, by the operator acting alone, by the credit card company, by the PSP, or by all three. In the event that an unusual spending pattern is noticed, these transactions could automatically be put on hold for further investigation.

FINANCIAL INTEGRITY OF INTERNET GAMBLING TRANSACTIONS

How will a license and regulation framework protect against money laundering and fraud?

Funds entering a gambling operator’s system are already resident in the banking network somewhere. That is, the funds have previously been deposited into a bank account at some stage, subjected to stringent KYC requirements, and which greatly increases the traceability of any funds entering the system. All transactions can also be checked at the time of authorization against a number of anti-fraud, money laundering and terrorism databases.

What additional security measures could be put in place to protect the consumer from merchant fraud?

Payment Service Providers could set-up escrow accounts for each licensee in which money is set aside for a period of time to ensure that when a financial transaction is successfully contested the operator immediately refunds the consumer. Therefore, any claim regarding the use of an unauthorized credit card could automatically result in a full repayment to the principal credit card holder.

STATES AND INDIAN TRIBES

Would individual states and Indian tribes have the option to opt-out of legalized Internet gambling?

To protect States’ and Indian tribes’ rights to control gambling activities within their respective geographic borders, the Act permits States and Indian tribes either to prohibit Internet gambling activities or impose limits on various types of Internet gambling activities.

Is it possible for restrictions to be enforced if individual states decide to “opt-out” from permitting persons in their states from Internet gambling?

Yes. In using the Internet, a customer’s IP address is broadcast to the operator, which can then be used to identify the state in which a customer resides with a 99 percent level of accuracy. This information is also made available and compared to the customer’s registration information. In the event the information differs, the transaction is not approved and the customer is prevented from engaging in Internet gambling.

SPORTS BETTING

If professional sports leagues and college associations decide to opt-out from allowing bets and wagers on their sporting activities, could that be enforced?

Yes. Under the proposed legislation, all licensed Internet gambling operators would be prohibited from accepting bets or wagers on sports leagues or associations that have opted-out. In the event of a violation, the operator’s license could be withdrawn and the operator may be prohibited from applying for a new license. As part of its contract with the Internet gambling operator, the PSP would be required to enforce these requirements throughout the collection and payment process.

Excellent!

This bill has just as many loop holes as Kyls, seems to me they are playing cat and mouse

The bill has to allow for individual states to choose if they want to participate, as state's rights is a fundamental part of our democracy. I always thought the most appalling part of this bill was the federal government making moral decisions, and I'd be just as politically opposed to a bill that forced all states to accept online wagers.

However, it is true that there will need to be something in it for the state governments, otherwise they have no reason to play. I'm sure participating states will see some form of tax revenue. I just hope there are no complications with cross-state gambling (as in, everyone at my table doesn't have to be from the same state). And I wouldn't worry about Nevada...don't you think the casinos will lobby to allow internet gambling once the federal restrictions are removed? And don't you think they could be quite successful? I'm sure more people have heard of (and therefore trust) Bellagio or MGM Grand as opposed to pokerstars.

It will also be interesting to see if sites like Bodog give up the sportsbook to play legally in the U.S. market. I suppose it will come down to which generates more revenue for them - a worldwide sportsbook, or an american-legalized poker room?

GO BARNEY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I don't even think it will be ready for states to vote on by November. Consider --- first this bill has to pass. Then someone has to write the regulations that the online casinos will abide by. Then the online casinos have to adjust their software accordingly, apply to feds, and ultimately be approved. I would think that process will take 12-18 months.

This is excellent news. At the very, very, very least, this should stem the tide of companies pulling out of the US market. Some might even see it as an opportunity to get back in. I doubt it, but you never know.

Anyway, It'll be very interesting to see if this picks up steam.

Hey, could p5s or ppa or someone write up a standardized letter that we can sent to our representatives like the one available a few months ago?

http://elon.facebook.com/group.php?gid=2317882921

For all y'all with facebook, this is a Barney Frank support group...as a poly-sci major this is very interesting and I am very pleased with Rep. Frank.

Don't worry. It won't pass.

Oaklawn does not have the Poker Pro tables yet, but Southland does. Oaklawn is waiting due to a pending lawsuit before the Arkansas Supreme Court. Both sites do however have the video poker machines to go with the instant racing we have had for 7 or 8 years.

You have to also remember that we finally got rid of the bible thumping Republican in the Gov office and the Democrats have contol of all the statewide offices.

Halter was in favor of a lottery and Beebe said he wouldn't stand in the way...

The states that ban it, ban it for the reasons that Barney's bill addresses.

but why, if they pay tax, the state compact could be adjusted to allow the tribe to have a site. Everyone benefits

Mark my words. It will pass as soon as Bushy is ousted. With the WTO flack with antigua, and that which is sure to come from England soon, it will pass.

I dont think party poker will ever be the leader in the industry again. All of the American noobs that played on there were forced to find the other (better) sites like Full Tilt and stars and I cannot imagine why they would just pack up and leave back to Party.