By
Dan |
Published
Nov 25 2009, 12:38 AM
|
On Thursday, December 3rd at 10:00am ET, the House Financial Services Committee will hold a hearing covering two bills that could alter the landscape of the internet gambling industry in the United States. Committee Chairman Barney Frank (D-MA), the internet gambling industry’s main proponent in Congress, introduced the two measures in question, HR 2266 and HR 2267, back in May. Now, they will take center stage in front of the 70-member Committee.
In September of 2008, the House Financial Services Committee approved HR 6870, the second version of the Payments System Protection Act, by a 30-19 vote. However, the economy in the United States and around the world unraveled shortly thereafter, diverting the attention of lawmakers for over a year. Now, internet gambling will once again be discussed in the hearing, which will play out in Room 2128 of the Rayburn House Office Building. PocketFivers can even tune into a live webcast of the event from the comfort of their couches.
A list of witnesses and prepared testimony were not available at the time of writing. Past guests have included members of major financial institutions, like banks and associations, as well as poker players and gambling experts. Next week’s hearing will feature discussion of
HR 2266 and HR 2267. The former bill delays mandatory financial services industry compliance with the UIGEA by one year until December 1st, 2010. It claims 53 co-sponsors and is dubbed the Reasonable Prudence in Regulation Act.
HR 2267, introduced on the same day as HR 2266, establishes a comprehensive framework for licensed internet gambling companies to accept U.S. customers. The measure is up to 63 co-sponsors and marks Frank’s latest attempt to legalize and regulate the industry in the United States. Recently, the Joint Committee on Taxation forecasted that up to
$42 billion could be raised from taxing licensed online gaming companies 2% of profits, a figure derived from Congressman Jim McDermott’s (D-WA)
HR 2268, a companion bill to HR 2267.
On Tuesday of next week, the financial services industry in the United States must come into full compliance with the regulations of the UIGEA. What effect their enforcement will have is not yet known, but estimates have ranged from the status quo remaining in effect to additional overblocking by credit card companies seeking to comply with the muddled 2006 law. Complicating the issue further is the Third Circuit Court of Appeals ruling that the legality of internet gambling depends on the state a player is located in.
Recently, Eye on Gambling reported that members of the
Kentucky Congressional delegation authored a letter to U.S. Treasury Secretary
Timothy Geithner urging the delay of mandatory UIGEA compliance by one year. Ben Chandler, Geoff Davis, Brett Guthrie, Harold Rogers, Edward Whitfield, and John Yarmuth penned the letter, following a similar move by the
Poker Players Alliance (PPA) and two horseracing organizations. The PPA has thrown its full support behind HR 2266 and HR 2267.
It is not yet known if any markup will occur during the December 3rd hearing on the two UIGEA-related bills. On the possible outcomes of the December 1st enforcement deadline coming and going, PPA Executive Director
John Pappas told PocketFives.com, “One thing players should be clear of is that getting money off of an online poker site would not be affected. The UIGEA regulations only affect deposits, not payouts. I don’t think there’s a fear of having money stranded online.” The PPA has topped 1.2 million members and held a fly-in four months ago urging Congressional support of both bills. Over 100 meetings were held with Congressmen and their staffers.
Stay tuned to PocketFives.com for the latest Poker Legislation news.