<SPAN class=Normal-H>September 11, 2009</SPAN>

<SPAN class=Normal-H>Dear Mr. Naggy,</SPAN>

<SPAN class=Normal-H>Thank you for writing me to express your support for H.R. 2267, the Internet Gambling Regulation, <SPAN id=lw_1252716473_0 class=yshortcuts>Consumer Protection</SPAN>, and Enforcement Act. I greatly appreciate your input on this matter, and I apologize for the delay in my reply.</SPAN>

<SPAN class=Normal-H>As a <SPAN id=lw_1252716473_1 class=yshortcuts>Member of Congress</SPAN>, it is my responsibility to represent my constituents' concerns and interests and to provide them the honorable and enthusiastic service they deserve. I truly value your thoughts and suggestions on issues before the House. In a representative government such as ours, it is essential that I know what your views are on these issues.</SPAN>

<SPAN class=normal-p-H><SPAN class=normal-h1-H>As you may be aware, in July of 2006, before I was elected, Congress passed the <SPAN id=lw_1252716473_2 class=yshortcuts>Unlawful Internet Gambling Enforcement</SPAN> Act. This legislation's intent was to curb online poker games, sports betting and other Internet-based wagering. Slipped in a ports security bill at the last minute, Congress members had to choose between <SPAN id=lw_1252716473_3 class=yshortcuts>port security</SPAN> and the rights of online gambling. I believe it is unfortunate that this legislation was passed without full debate.</SPAN></SPAN>

<SPAN class=normal-p-H> <SPAN class=normal-h1-H>As you may know, H.R. 2267 was introduced by <SPAN id=lw_1252716473_4 class=yshortcuts>Representative Frank</SPAN>, the Chairman of the <SPAN id=lw_1252716473_5 class=yshortcuts>House Committee</SPAN> on Financial Services. The bill is being considered before that committee as well as the <SPAN id=lw_1252716473_6 class=yshortcuts>House Judiciary Committee</SPAN> and the House Energy and Commerce Committee. H.R. 2267 would provide a framework for regulation of Internet gaming and also provides protections to </SPAN><SPAN class=normal-h1-H>U.S.</SPAN><SPAN class=normal-h1-H> citizens who may be at risk through Internet gaming. I am generally supportive of the provisions of this bill, as I was of similar legislation introduced in the 110</SPAN><SPAN class=normal-h1-H><SPAN>th</SPAN></SPAN><SPAN class=normal-h1-H> Congress, H.R. 2046.</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN class=normal-h1-H>H.R. 2267 differs from H.R. 2046 in that it grants regulatory power to the <SPAN id=lw_1252716473_7 class=yshortcuts>Secretary of the Treasury</SPAN>, rather than </SPAN><SPAN>The Director of the <SPAN id=lw_1252716473_8 class=yshortcuts>Financial Crimes Enforcement Network</SPAN>. Specifically H.R. 2267 does the following:</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN>o </SPAN><SPAN>Establishes safeguards to verify that the customer placing a bet or wager is of legal age as defined by the law of the state or tribal area in which the individual is located at the time the bet or wager is placed.</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN>o </SPAN><SPAN>Requires mechanisms that verify that the customer placing a bet or wager is physically located in a jurisdiction that permits Internet gambling.</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN>o </SPAN><SPAN>Ensuring the collection of all taxes relating to Internet gambling from customers and from any licensee.</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN>o </SPAN><SPAN>Maintains safeguards to combat fraud, <SPAN id=lw_1252716473_9 class=yshortcuts>money laundering</SPAN>, and the financing of terrorism.</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN>o </SPAN><SPAN>Maintains safeguards to protect the customer's privacy and security.</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN class=normal-h1-H>o </SPAN><SPAN>Establishes safeguards to combat compulsive Internet gambling.</SPAN></SPAN>

<SPAN class=normal-p-H> <SPAN class=normal-h1-H>I agree that poker is a great American game with deep roots in this country, and also believe that it is a game based on merit and skill. Over 23 million Americans play poker over the Internet and total online betting is near $6 billion dollars per year. This makes up fifty percent of the worldwide market. It is clear that these numbers indicate how popular Internet gambling is, and that is why I am closely monitoring and supportive of the provisions in H.R. 2266, the Reasonable Prudence in Regulation Act, also introduced by Representative Frank, which would delay implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 for an additional year, until December 1, 2010.</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN class=normal-h1-H>Last session, Congress considered H.R. 2610, the <SPAN id=lw_1252716473_10 class=yshortcuts>Skill Game Protection</SPAN> Act, which would have addressed your concerns about the regulation of Internet games. This legislation would have allowed wagering regulation exemptions for games in which a player's skill is the primary determinant of success. Poker, chess, bridge, and mahjong are specifically mentioned in this proposal. Additionally, this Act would have safeguarded participants by establishing requirements for individuals who operate "games of skill" including:</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN class=normal-h1-H><SPAN>o</SPAN></SPAN><SPAN class=normal-h1-H>Participants depositing funds must be 18 years of age or older</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN class=normal-h1-H><SPAN>o</SPAN></SPAN><SPAN class=normal-h1-H>Participants must be physically located in a jurisdiction that does not bar participation in Internet games of skill</SPAN></SPAN>

<SPAN class=normal-p-H><SPAN class=normal-h1-H><SPAN>o</SPAN></SPAN><SPAN class=normal-h1-H>All taxes related to Internet games of skill must be collected at the time of any payment of proceeds of Internet games of skill</SPAN></SPAN>

<SPAN class=Normal-H>Thank you again for your letter. If I can be of any additional assistance, please do not hesitate to contact me. I look forward to our future correspondence.</SPAN>

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