In a recent Poker Community thread, PocketFives asked for questions from the online poker community for Poker Players Alliance (PPA) Executive Director John Pappas (pictured). With a hearing in the Senate Committee on Indian Affairs on deck for two weeks from now and an election looming in November, can U.S. online poker players expect to see Federal regulation this year? For the answer to that question and many others, PocketFives sat down with Pappas on Tuesday.

PocketFives: How likely do you think it is that a Federal online poker bill will be passed during this session of Congress?

John Pappas: I’d say it’s better than 50-50. I’d say 60% given all that’s happened with the DOJ and the positive signals being sent by Senator Harry Reid on this.

PocketFives: Is a Federal bill more likely to pass on its own or as a rider? Are there any Senators willing to attach a proposed bill as a rider?

John Pappas: It’s much more likely as a rider. There would be a Senator or two interested in it.

PocketFives: Is the bill to extend the payroll tax break an attractive option for an online poker rider?

John Pappas: Any bill in this Congress would be an option. The problem we’ll face at some point is that Congress will begin focusing on the election. We need to start looking at potential vehicles as soon as possible.

PocketFives: After a bill is passed, how long do you expect it to take before regulations are in place, licenses are awarded, and players are able to play?

John Pappas: I would say a minimum of six months. There wouldn’t be a blackout period this time around, though. I foresee, if anything, an incentive to rush to market.

PocketFives: Do you have any thoughts as to whether the DOJ or state agencies are likely to pursue cases against rake-based sites currently operating in the U.S.? Does the Wire Act clarification make it less likely for the DOJ to get involved?

John Pappas: I don’t have any information one way or another on the cases. The DOJ’s involvement would depend on whether the operators are violating bank law or gambling law. If they were violating bank law, I’d imagine the DOJ would continue its pursuit. Gambling law is murkier.

PocketFives: Do you see interstate online poker becoming a reality in the United States?

John Pappas: Federal legislation would provide for interstate online poker, which is why we prefer that route. At a state level, it’s a question mark whether states could pull together liquidity. We think interstate poker would be the best way to move forward if states did it alone, but there’s no guarantee it would be allowable.

The DOJ’s Wire Act opinion was about intrastate transactions, not interstate transactions. If you pool together transactions from multiple states, then that would clearly be interstate. States do it already via horse racing and Powerball, so there seems to be a precedent that they could do it for poker, but it’s not as clean.

PocketFives: Can you talk about the involvement of Senators Harry Reid (pictured), Jon Kyl, and Mitch McConnell? Are they all on board with the legalization and regulation of online poker?

John Pappas: All of them are coming at it from different perspectives. Kyl isn’t looking at this because he wants people to play online poker; he wants stronger enforcement against that which is not online poker. McConnell is looking at it as a way to help Kentucky’s horse racing industry. Reid is looking at it from a consumer protection perspective as well as ensuring that Nevada is at the lead of this industry. The motivations of all three of them are quite different and it just so happens that poker players will be the beneficiaries.

PocketFives: If there is in fact interstate internet gambling, we’re assuming there would be an opt-out possibility for states. Are there any particular states that seem more or less likely to opt out?

John Pappas: Utah and Hawaii will not be likely to participate since they have no gambling right now. Some of the more traditional conservative southern states like Alabama and South Carolina may be slow to act. We believe that, over time, a vast majority of states will see the benefits of participating in the system.

PocketFives: Do you think there will be licenses required for poker affiliates?

John Pappas: I don’t know the specifics of those requirements in terms of whether they’d need to be licensed or vetted as part of a background check. It would certainly be wise to make sure that those who are promoting gaming sites are reputable and aren’t also, at the same time, promoting unlicensed sites.

PocketFives: What’s the mood in Washington, DC about this topic in general?

John Pappas: Everyone is optimistic that something can get done this year. We are realistic that we’re dealing with a dysfunctional Congress, as Frank Fahrenkopf of the American Gaming Association put it, but a lot of the stars have aligned. It’s just going to take some final pieces being put together.

PocketFives: Can you evaluate which of the four Republican Presidential candidates could be the most amenable to online poker legislation? Also, discuss Sheldon Adelson, who commented that he is “morally opposed” to online gaming, giving $10 million to a PAC associated with Newt Gingrich‘s campaign. Does that make the former Speaker of the House (pictured) a less desirable candidate?

John Pappas: The only one with a record on the issue is Ron Paul, who is a sponsor of Joe Barton’s online poker legislation. We don’t know Newt’s position on it, so I don’t want to comment on his relationship with Sheldon Adelson.

PocketFives: Is it possible that U.S.-regulated online poker rooms will be able to accept players worldwide?

John Pappas: We believe that should be the case and will be the case. It’s been something that’s been discussed here in DC and we’ve been arguing why it should be done. The market shouldn’t just be open to any players overseas, but certainly those who reside in countries where it’s licensed and regulated should be allowed to participate. The U.S. Government has an obligation to U.S. consumers to give them an opportunity to play against foreign competition. From a player’s perspective, it would mean a greater liquidity.

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