By
Dan |
Published
Sep 16 2008, 02:13 PM
It was a long Tuesday in the House Financial Services Committee, but it was a day that ended on a high note for online poker players around the world. HR 6870, the Payments System Protection Act, was approved by a 30-19 vote, giving the green light for its discussion in the House of Representatives. For Barney Frank, the Chairman of the Committee, it marked his second attempt at halting the regulations of the Unlawful Internet Gambling Enforcement Act. HR 5767, which he introduced in conjunction with Congressman Ron Paul (R-TX), was struck down in Committee in June. This time, his efforts were successful. Let’s check out the results from the hearing this afternoon.
HR 6870 calls for any regulations of the UIGEA to be suspended “except to the extent as any such regulation pertains to wagering of the type that is prohibited (as of the date of the enactment of this Act) under chapter 178 of title 28, United States Code (relating to professional and amateur sports protection).” The bill and an adopted amendment also introduced by Barney Frank would halt banks from allowing betting on professional sports leagues. In addition, they would require that the U.S. Treasury and Federal Reserve must work together with an Administrative Law Judge to formulate a list of what is against the law under the UIGEA. Frank explained, “There has been a great deal of debate on the issue. [HR 6870 is HR 5767] plus an exclusion for sports leagues and a list to be developed.”
Congressman Spencer Bachus, who has been leading the charge against any bill aimed at clarifying the UIGEA, had this to say about HR 6870: “The bill we are considering today reflects a targeted approach and I’m thankful for that. It would at least instruct financial institutions to stop sports betting online. I appreciate the efforts of Chairman Frank to scale back the bill, but I still can’t support it. I implore officials in the Treasury and Federal Reserve to complete the development and implementation of UIGEA rules. These regulations are more than a year overdue. It isn’t too much to ask the executive branch to comply with these regulations.”
Bachus stated that sports leagues informed him that they were in opposition to HR 6870. Congressman William Lacy Clay (D-MO) stated, “I’m alarmed that major league sports would come forward to announce their opposition to the bill. I’m puzzled by their stance especially when you have legal sports books in Las Vegas. I can’t figure out what the difference is between internet gambling and Las Vegas sports books is.” On the UIGEA, he stated, “Sometimes we should be willing to admit when we made a mistake and passed a law that’s unenforceable.”
Frank noted that the legality of internet gambling in the United States is still open to interpretation. He stated that whether betting on horse racing is legal depends on what department you asked. Overall, he summed up his views by adding, “How people spend their leisure time should not be made illegal or encouraged in a free society. If you’re going to [impose restrictions using the UIGEA], you’re hijacking the banking system. If this bill is passed, I would still like to repeal the law. Under this bill, at least the banks will know what is and isn’t illegal.”
An amendment to the bill was introduced by Barney Frank and calls for a laundry list of activities that are and are not legal under the UIGEA to be developed and handed over to financial institutions. It was passed and added to the bill by an oral vote around 2:30pm ET. Another oral vote was taken on HR 6870 with the amendment attached. It too passed, but Congressman Bachus called for a roll call vote, which didn’t occur until 5:00pm ET. HR 6870 formally passed through Committee by a 30-19 vote, marking a landmark day for online poker players everywhere.
Related ArticleFrank Introduces HR 6870; Will be Marked Up Tuesday