Ron Paul, Jim McDermott Headline the PocketFives.com Podcast
In the fast-paced world of online poker, several Congressmen have stepped up to the plate to push through legislation that is friendly to online poker. A far cry from the landscape two short years ago, 2008 is shaping up to be a resoundingly positive calendar year for the industry. On Friday, April 11, it was announced that Congressmen Barney Frank and Ron Paul had introduced HR 5767, a bill that would prohibit the U.S. Treasury and Federal Reserve from implementing the regulations of the Unlawful Internet Gambling Enforcement Act. This week, Congressman Ron Paul appears on the PocketFives.com Podcast. The Republican from Texas and 2008 Presidential candidate gives his opinion of the UIGEA and its ramifications. In addition, we’ll talk with Congressman Jim McDermott, who has authored the Internet Gambling Tax Act, providing a substantial source of revenue for Washington.
Congressman Paul opposed the UIGEA back in 2006 and comments on its deleterious effects: “Two years ago when the Republicans were in charge, they passed a bill to prevent gambling on the internet. I opposed it then; Barney Frank opposed it. HR 5767 was his idea and I agreed with him, so we’re co-sponsors of the bill. My reasons are different than others. I don’t like the government ever messing with the internet. I think the internet has been a real salvation for a lot of us who try to get out ideas, especially if they’re controversial. I don’t want the government working its way in. The other reason is monetary. If people want to be entertained and take on a personal risk, as long as they don’t pass that risk onto somebody else, even if it involves gambling, that’s their right.”
HR 5767 is a bipartisan bill, sponsored by a Democrat (Congressman Frank) and a Republican (Congressman Paul). It’s the first pro-internet gambling bill that’s had this characteristic since the UIGEA was unceremoniously tacked onto the SAFE Port Act in 2006: “Being bipartisan is helpful, but not magic,” says Congressman Paul. “I think the most important thing is that Barney Frank is the Chairman of the Financial Services Committee. The fact that he’s involved and the fact that it’s a bipartisan bill mean we’ll have a better chance. However, the forces who don’t want this to happen and want the rules implemented aren’t going to lie down. It’s going to be a tough fight. I see this as a personal responsibility issue and don’t think the government should be regulating our economic lives.”
Congressman McDermott introduced HR 2607, the Internet Gambling Tax Act, back in June of 2007. HR 2607 specifically calls for a licensing fee of 2% of internet gambling revenues to be paid to the U.S. government. As you might already be thinking, there’s a ton of money at stake. On the PocketFives.com Podcast, McDermott quotes a study by PricewaterhouseCoopers claiming that internet gambling taxation could bring in between $3.1 billion and $15.2 billion in tax revenue in the first five years and more than double those figures after a decade. The impact of that kind of influx of money should not go unnoticed.
The protection of the online poker player along with revenue for the U.S. government means that HR 2607 can preserve the future of online poker. Congressman McDermott continues, “Thousands of Americans are wagering online, but it’s rooted offshore because Congress made internet gambling illegal a couple of years ago in the middle of the night with no debate. The result is that Americans have no protections online and are vulnerable to scams, unscrupulous operators.”
It’s rare to see an industry raise its hand and request to be regulated and taxed by a government like the United States. However, for internet gambling, this appears to be one of the few alternatives available. Congressman McDermott gives his take: “There are very few times when I’ve sat on the Ways and Means Committee and people actually came in and asked for regulation and taxation. In this case, prohibition has failed before and it will fail again. Americans are gambling online today and more money is being wagered because they’re gambling in an unprotected, unregulated, and largely unknown world. All the way around, it’s better to be regulated.”
Hear from two of the most influential figures in Congress, Ron Paul and Jim McDermott, both fighting for your right as an online poker player to continue enjoying the game you love. Check out the PocketFives.com Podcast today.
