By
Dan
On Friday, October 13, 2006, the online poker world was taken aback by the last-minute passage of the Unlawful Internet Gambling Enforcement Act. Seven months of turmoil later, there is a light at the end of the tunnel. Congressman Barney Frank (D-MA) introduced comprehensive legislation on Thursday, April 26, 2007 that “would create an exemption to the ban on online gambling for properly licensed operators, allowing Americans to lawfully bet online,” according to an official statement released by the House of Representatives Financial Services Committee. The legislation is appropriately entitled the "
Internet Gambling Regulation and Enforcement Act of 2007."
The statement continues, “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.” These important protections address many of the reasons for the initial passage of the UIGEA itself: children gambling online, gamblers clicking their mouse and losing their house, and the ever-present concern over terrorism.
Former Senator Alfonse D’Amato, now Chairman of the Poker Players Alliance, the online poker industry’s main lobbying group, commented in a statement: “Congressman Frank's bill is a common sense approach to Internet gaming. Licensing and regulation will allow us sort out the most responsible sites who are good corporate citizens from those engaged in unscrupulous activities and practices. This legislation creates good public policy that establishes real safeguards that protect minors and problem gamblers while allowing the majority of adults to enjoy poker and other games online.”
PPA President Michael Bolcerek said, “As opposed to driving the entertainment activities of millions of Americans underground which the ban unintentionally causes, this will add greater visibility to this area and better address social and financial concerns.” The PPA’s membership current stands at over 425,000, with a stated goal of reaching one million. It has ballooned since the arrival of D’Amato.
The Act does allow for state lawmakers to have a degree of discretion with regards to gambling within their jurisdictions: “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.” A user’s IP address will be used to enforce this measure. Additionally, sports leagues can opt in or out of allowing wagering on their particular game.
Further discussion on Congressman Frank’s bill will take place in June. The bill is numbered H.R. 2046.
News Resources
Read the full text of the proposed legislation by clicking here.
Read the entire press release by the House Financial Services Committee clicking here.
Congressman Frank was a guest on the PocketFives.com Podcast last year and spoke about his thoughts on the internet gambling legislation. Listen to it!!
Check out Barney Frank's House of Representatives web site to learn more about the Representative from Massachusetts.
Barney Frank image courtesy of House web site.