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Massachusetts Casino Bill Struck Down

By Dan

The month of March has been full of encouraging news for online poker players. When March came in like a lion, the Interactive Media Entertainment and Gaming Association, or iMEGA, was granted standing to sue the federal government, declaring the Unlawful Internet Gambling Enforcement Act (UIGEA) unconstitutional. Although Judge Mary L. Cooper disagreed with several of iMEGA’s arguments, the case will move on to the Third District Court of Appeals. On April 2nd, the House Financial Services Committee will be holding a hearing entitled, “Proposed UIGEA Regulations: Burden without Benefit?” The hearing will thrust the banking industry into the spotlight, which could ultimately help lead to the passage of Barney Frank’s or Robert Wexler’s bills. On March 20th, Massachusetts Casino Bill H. 4307 was struck down in committee and defeated overwhelmingly on the House floor. The bill included a provision that would have criminalized online poker. PocketFives.com spoke to two men who helped keep Casino Bill H. 4307 from becoming a nightmarish law, John Pappas and Andrew Woods.

For those unfamiliar with the situation, H.4307 was introduced by Massachusetts Governor Deval Patrick and called for the construction of three casinos in the state. Not threatening to online poker, right? Think again. The bill also included a provision that would make playing online poker punishable by up to two years in prison and a $25,000 fine. Needless to say, the Global Poker Strategic Thinking Society (GPSTS) and Poker Players Alliance (PPA) stepped in on behalf of our industry by bringing their membership to the scene. H. 4307 was resoundingly defeated 108-46.

The GPSTS found itself in the middle of the fray. Located at Harvard Law School and not too far away from the state’s legislature, the GPSTS attended a rally on Tuesday, March 18th, the day a hearing on the Casino Bill took place. Executive Director Andrew Woods comments on the bill’s defeat: “We’re ecstatic. It’s always good to be a part of the democratic process and to have your voice heard. We attracted a lot of attention from the decision makers here in Massachusetts. I had aids and staffers come to me and say that we didn’t realize criminalizing online poker was even in the bill.”

For now, it’s a monstrous victory for online poker players across Massachusetts; however, there’s a silver lining. Another bill is currently being discussed that would call for legalizing slot machines. This bill, unfortunately, also includes a provision that would criminalize online poker. Woods claims this bill is less threatening than H. 4307: “Right now, Governor Patrick has said he will veto any slots-only bill. There’s still the question on where the pressure to criminalize online poker is coming from. The GPSTS does not support slot machines. We think they’re detrimental to the educational cause we’re trying to advance.”

The Poker Players Alliance is the leading lobbying group for online poker players. The organization is swiftly approaching one million members and is based in Washington, D.C. Because of the severe nature of the Casino Bill, the PPA stepped in. Executive Director John Pappas commented, “We only opposed the bill as long as it had an onerous provision about criminalizing playing online poker on the internet. We have no opposition at all to licensing three casinos in the state (in fact, we’d support it, especially if the casinos had poker rooms), but we weren’t going to sit idly by while the bill had that provision in it. The bill itself could seek new life and the provision hasn’t been removed, but we’re confident we’ll have a good chance to get that provision out of the bill once and for all in the coming weeks.”

The PPA sent its troops to the scene on March 18th as well, donning red shirts that read, “Poker is Not a Crime.” PPA Massachusetts State Director Randy Castonguay sent a mass e-mail to all PPA members in the state to write their local Representative and Senator. It was a true grassroots effort.

In Massachusetts, the legislative process works a bit differently than in other states. Even if a bill gets reported out of a committee unfavorably, it still is sent to the full floor of the House. However, it goes with an unfavorable recommendation from the committee. The bill, according to Pappas, was struck down decisively. On the new bill concerning slot machines, the PPA is standing by for action: “The slot machines bill has been out there for a long time. It was brought to our attention that the criminalization language was included. It has an uphill climb.”

So for now, a crisis has been averted in Massachusetts, at least for the time being. Both the Casino Bill H. 4307 and the slot machine bill still loom, but you can rest assured there are organizations fighting for your rights as an online poker player. Support the GPSTS by visiting the organization’s website at www.gpsts.org. The PPA’s site is found at www.pokerplayersalliance.org.

Published Mar 27 2008, 05:07 PM

Comments
 

TheEngineer said:

Nice article, Dan!  Thanks.

Randy Castonguay did a great job for us in making this happen.  We showed politicians in Mass and everywhere else that we'll no longer be run over.

March 30, 2008 2:06 PM
 

Grange95 said:

"The month of March has been full of encouraging news for online poker players. When March came in like a lion, the Interactive Media Entertainment and Gaming Association, or iMEGA, was granted standing to sue the federal government, declaring the Unlawful Internet Gambling Enforcement Act (UIGEA) unconstitutional. Although Judge Mary L. Cooper disagreed with several of iMEGA’s arguments, the case will move on to the Third District Court of Appeals."

Wow, just out of curiosity, did you READ the court's decision in the IMEGA case?!?  The court found IMEGA had standing to bring the suit (not a terribly difficult hurdle to jump), but then rejected every single argument made by IMEGA.  Nowhere in the decision did the court declare the law unconstitutional or otherwise suggest the law should be struck down.  Republishing IMEGA's bizarrely positive spin / misinformation is not helpful to the poker community.

I'm an attorney and read the decision in its entirety.  Poker Grump has a pretty detailed analysis that is spot on:  <a href="pokergrump.blogspot.com/.../lies-and-confusion-about-imega-case.html Grump: Lies and confusion about the iMEGA case</a>

April 2, 2008 2:11 AM
 

Dan said:

Hey, Grange. Yes, I read the decision. The main goal of iMEGA heading into the ruling was to be granted standing and that's exactly what happened. The Third District Court of Appeals has historically ruled favorably towards first amendment issues.

April 2, 2008 1:52 PM
 

Grange95 said:

To have as a goal merely to be granted standing is rather odd, particularly if iMEGA was using their standing to advance such weak arguments on the merits.  The 10th Amendment and ex post facto law arguments are almost laughable, and the other arguments look to have little merit, at least under current case law.  Relying on a 1st Amendment free speech claim when UIGEA pretty clearly only prohibits certain financial transactions is real long shot, no matter the court.  Although I think UIGEA is a flawed and ill-conceived piece of legislation, the legal challenges asserted by iMEGA do nothing to advance the cause of legalizing online poker.  In any event, iMEGA's "victory" in getting standing to challenge UIGEA really has no practical value when iMEGA hasn't asserted any reasonably meritorious legal basis to challenge the validity of UIGEA.  At the very least, iMEGA and the poker press should not misrepresent the decision as somehow striking down or even questioning the validity of UIGEA.

FWIW, the current efforts by Barney Frank and others in Congress to rethink the scope of UIGEA is the best way to re-legalize online poker.  Perhaps iMEGA's resources are better directed to lobbying Congress for an online poker exception to UIGEA.

P.S.  The appeal will be heard by the Third Circuit Court of Appeals, not the Third District (just a minor correction for any follow up articles).

April 2, 2008 10:21 PM

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