One of the most promising pieces of legislation that would have eliminated the effectiveness of the Unlawful Internet Gambling Enforcement Act was defeated in the U.S. House Financial Services Committee on Wednesday, June 25. HR 5767, authored by Democratic Congressman Barney Frank and Republican Presidential Candidate Ron Paul, would have prohibited the U.S. Treasury and Federal Reserve from enforcing the UIGEA. Now, it’s back to square one for the online poker industry, which must regroup under the guidance of the Poker Players Alliance, the industry’s main lobbying group.
During the hearing on Wednesday, Republican Congressman Peter King introduced an amendment designed to make the bill more palatable to Committee members on both sides of the aisle. King’s amendment addressed the main points of concern that led to HR 5767 being introduced in the first place: It required the U.S. Treasury and Federal Reserve to collaborate with the Justice Department to decide what is legal and what is not under the UIGEA. As it currently stands (and will continue to stand after today’s defeat of the legislation), the financial services industry in the United States is left to decide for itself what is and isn’t legal. This comes amidst one of the largest mortgage crises ever in the history of the country, making the UIGEA particularly burdensome.
Opponents to HR 5767 and its companion amendment focused on the effects of gambling online rather than on whether the UIGEA is an effective law in the first place. Poker Players Alliance Chairman Alfonse D’Amato commented in a press release: “As it stands, UIGEA is a completely unworkable and unenforceable bill that would do little to address the main concerns of its sponsors – namely, protecting underage and compulsive gamblers as well as cracking down on money laundering. To truly address these issues, the PPA firmly believes that Congress should implement thoughtful and effective regulation of the online gambling industry as opposed to outright prohibitions, which history has shown do not work.”
A press release by the Safe and Secure Internet Gambling Initiative echoed D’Amato’s sentiments: “Given the freedom of the Internet, it is foolhardy to impose the current regulations and force U.S. financial service companies to police for illegal activity. Rather than prohibit an activity millions of Americans enjoy doing in their homes, just as they can do in a casino, Congress should create a regulatory framework for Internet gambling as a way to protect consumers and collect billions in much-needed federal revenue that is currently lost in an underground, uncontrolled marketplace.”
Still in Congress are four separate internet gambling bills that may soon be the focus of the PPA’s attack. They include the Internet Gambling Regulation and Enforcement Act, or HR 2046, which creates a regulatory framework as well as a system for foreign gambling operators to seek licenses to solicit U.S. customers. Congressman Robert Wexler has introduced HR 2610, the Skill Game Protection Act, which carves out poker, bridge, and other games of skill from all existing legislation, including the UIGEA and Wire Act. In Wexler’s legislation games of “skill” are defined as games where the action is player versus player and not player versus the house.
Although the defeat of HR 5767 was a big blow to the future of the internet gambling industry in the United States, hope does remain. If you’re not yet a member of the Poker Players Alliance, rest assured the organization is fighting for your right to play online poker in the United States. Visit PokerPlayersAlliance.org for more information. Free memberships are available.