Poker Articles

Ever since the Unlawful Internet Gambling Enforcement Act was passed back in the final moments of the 2006 legislative session, the industry has seen several organizations step up and fight for online gambling and online poker. They include the Poker Players Alliance, the Safe and Secure Gambling Initiative, as well as several Congressmen including Barney Frank (D-MA) and Robert Wexler (D-FL). The Remote Gambling Association, or RGA, is another extremely important piece of the puzzle. According to its website, the RGA “represents the world's largest and most well known remote gambling companies and provides the industry with a single voice on all the issues of importance to regulators, legislators, and key decision makers around the world.” In addition to Party Gaming, Betfair, and PKR, its members include Skybet, Microgaming, CryptoLogic, 888, and Victor Chandler.

RGA Chief Executive Clive Hawkswood explains the importance of the European Commission’s decision to act: “At this stage, all they have announced is a formal investigation, but they would not have gone down this path unless they agreed we had a very strong case. Therefore, the main significance is that an objective authority has reviewed the situation and found fault with the U.S.’s position. The E.U. is one of the U.S.’s main trading partners and it will not be easy for anyone in Washington to overlook the action that is being taken.”

In a press release distributed by the RGA, Hawkswood adds, “As the industry trade association, we cannot simply sit on the sidelines and watch while our members, who are already badly bruised by unlawful U.S. acts, suffer the double whammy of being prosecuted for activities whilst U.S. industry is not. By any analysis, the U.S. policy is fundamentally unfair, and we are delighted that the Commission shares our concern and alarm.”

What’s in store now? The investigation by the European Commission is expected to last between five and seven months. At the end of its inquiry, the Commission can either refer the matter to the WTO itself or attempt to settle with the U.S. directly. According to Hawkswood, “their preference would normally be to resolve the matter through negotiations with the U.S.” An industry organization like the RGA cannot simply lodge a complaint with the WTO directly. Instead, it has to work with an intermediary such as the European Commission. Hawkswood is quite optimistic as to the outcome of the proceedings: “We would be very surprised if the European Commission did not find in our favor and conclude that the U.S. has been behaving in an unacceptable and discriminatory way.”

The RGA is aiming high in its desired resolution: “Our ideal outcome would see the U.S. giving an understanding to the E.U. that it will not pursue enforcement action against any E.U. individuals or entities for gambling-related business that took place prior to the withdrawal of its commitments under G.A.T.S. or, at the very minimum prior to the passing of the UIGEA. Longer term it will, ideally, also encourage the U.S. authorities to introduce a non-discriminatory regulatory and licensing regime.” The latter has been the focus of the Internet Gambling Regulation and Enforcement Act, or H.R. 2046, a bill proposed by Congressman Barney Frank.

Coupled with the iMEGA decision and a hearing on internet gambling law sponsored in April, the internet gambling industry’s momentum has picked up full throttle. Although each organization has, for the most part, worked independently of one another, Hawkswood sees a trend emerging as of late, “This issue will not go away. In terms of political and legal debate, the genie is out of the bottle.” It doesn’t get much clearer than that.

2008 promises to be a busy year in online poker. The Poker Players Alliance is rapidly approaching one million members. Legislation currently sitting in Congress has steadily made its way into the foreground. An election year is upon us, meaning the landscape is about to change greatly. Stay informed. Stay active. You’ll be glad you did.

Check out the RGA's website at http://www.rga.eu.com/