By
Dan |
Published
Oct 01 2008, 03:37 PM
On Tuesday, Senator Robert Menendez (D-NJ) introduced S 3616, the Internet Skill Game Licensing and Control Act, the latest attempt to legalize and regulate online poker in the United States. Similar in some respects to Robert Wexler’s HR 2610, the Skill Game Protection Act, S 3616 specifically aims to regulate games of skill and mentions online poker, bridge, and mah jong by name. The bill, like its counterparts that sit in Congress, may be acted on in 2008 depending upon the legislative calendar and the possibility of a lame duck session after general elections. Right now, the minds of Congress are turned towards a so-called “bailout.”
The Poker Players Alliance (PPA), the main lobbying force for the online poker industry, praised the bill’s introduction. The organization’s Chairman, Alfonse D’Amato, commented, “On behalf of the members of the PPA and online poker players nation-wide, I would like to thank Senator Menendez on his leadership on this important issue. We look forward to working with him and his Senate colleagues to enact this sound public policy.” The bill defines a skill game for its purposes specifically as a game “in which success is predominantly determined by the skill of the players, including poker, bridge, and mah jong.”
A similar piece of legislation in the House of Representatives is HR 2610, the Skill Game Protection Act. It was proposed by Congressman Robert Wexler (D-FL) and exempts skill games from existing internet gambling laws including the Wire Act of 1961 and the Unlawful Internet Gambling Enforcement Act (UIGEA). HR 2610 currently has 22 co-sponsors. S 3616, which was just introduced, does not have any according to the PPA’s website.
Applications to operate a skill game online in the United States would be turned over to a regulatory organization. Each company would be required to submit financial information, an outline of its corporate structure, and the names of all owners involved. Determinations as to whether applications will be accepted or denied are based on the applicant’s experience, financial solvency, and record of past compliance. A thorough background check is also required.
Menendez’s bill also requires that licensees implement proper safeguards against problem gambling, underage gambling, illegal gambling, fraud, terrorism, tax avoidance, and money laundering. In addition, betting on sports is not allowed. The bill also outlines penalties for failing to abide by S 3616’s regulations: “Any person who knowingly violates any provision… shall be fined…, imprisoned for no more than five years, or both.”
PPA President John Pappas, who is one of the leading figures behind the scenes on Capitol Hill, told PocketFives.com, “Movement of this bill this session is unlikely, but this is a great rallying point so that the poker community can know where their Senators stand on this issue. We encourage poker players to contact their Senators and ask them to support this bill. We intend for this bill to be reintroduced in the next Congress.”
The online poker industry recently recorded a win in the House Financial Services Committee, where its Chairman, Congressman Barney Frank (D-MA), recently pushed through HR 6870, the Payments System Protection Act. The bill was introduced in response to members of the U.S. financial services industry who claimed that they were unable to enforce the UIGEA due to lack of direction. The bill passed the Committee by a 30-19 vote, although its future during the 2008 Congressional session is uncertain. Bills that are not passed during this session must be reintroduced in 2009 when the next Congress takes office. In November’s general elections, the entire House of Representatives and one-third of the Senate is up for grabs.
Congress was scheduled to adjourn on September 26th for elections. No updated timetable for adjournment has been given. Visit the Poker Players Alliance for more information on this 1.2 million member strong organization. Free memberships are available.
A call placed to Senator Menendez’s office requesting comment was not returned.