PR: Congress Moves to Suspend Internet Gambling Ban

[Casinomeister]

Congress Moves to Suspend Internet Gambling Ban

Current law unduly burdens U.S. financial services institutions

(Washington, D.C. – April 11, 2008) – The Safe and Secure Internet Gambling Initiative (SSIGI) announced its support for new legislation, H.R.5767, that would prohibit the Department of the Treasury and Federal Reserve System from proposing, prescribing or implementing any regulations related to the current ban on Internet gambling, as required by the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). The bill was introduced yesterday by Reps. Barney Frank (D-Mass.) and Ron Paul (R-Texas).

”The Frank-Paul bill would stop the U.S. government from taking any further steps on regulations that would require all of the country’s financial institutions to block Internet Gambling payments” said SSIGI spokesman Jeff Sandman. “It’s a bold move, but a necessary one, in light of the warnings from the Treasury and Federal Reserve that they did not know how to write regulations to solve the problems created by UIGEA. Further, witnesses representing a broad spectrum of the financial services community unanimously stated that the current ban on Internet gambling is dangerous to the payments system and ineffective in stopping people from using the Internet to play poker, make bets on horses, or engage in other types of wagering.”

The current Internet gambling ban creates significant additional burdens for U.S. financial institutions, which say that it is unfair to turn them into the Internet gambling police at a time when their undivided attention ought to be on the economy.

Testimony before Congress last week offered proof that financial services institutions would face serious regulatory burdens in attempting to enforce UIGEA and related regulations, which is unlikely to stop millions of Americans from gambling online.

Representatives from the Credit Union National Association, Financial Services Roundtable, American Bankers Association and Wells Fargo & Co. testified about the burden they would unnecessarily face before the House Committee on Financial Service’s Subcommittee on Domestic and International Monetary Policy, Trade, and Technology on April 2. The current UIGEA law is ambiguous and allows for multiple interpretations of what may or may not be illegal activities.

Their comments reflect the concerns echoed in the more than 200 comments submitted to the Department of the Treasury and Federal Reserve System.

Frank introduced legislation last year, the Internet Gambling Regulation and Enforcement Act (H.R. 2046), that would regulate Internet gambling. The bill would require licensed Internet gambling operators to put in place safeguards to protect against underage and compulsive gambling and ensure the integrity of financial transactions.

A companion piece of legislation to the Frank bill introduced by Rep. Jim McDermott (D-WA), the Internet Gambling Regulation and Tax Enforcement Act of 2008 (H.R. 5523), would ensure the collection of taxes on regulated Internet gambling activities. According to a tax revenue analysis prepared by PricewaterhouseCoopers, taxation of regulated Internet gambling is expected to generate between $8.7 billion to $42.8 billion in federal revenues over its first 10 years.

About Safe and Secure Internet Gambling Initiative

The Safe and Secure Internet Gambling Initiative promotes the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions. For more information on the Initiative, please visit www.safeandsecureig.org. The Web site provides a means by which individuals can register support for regulated Internet gambling with their elected representatives.

[winbig]

After the latest hearings on the regulation of the UIGEA, I don't see how this bill could NOT pass. It's hard to argue with common sense.

Does anyone have a link to the bill itself? I can't find it...

[JlSpitFirelC]

What a great birthday present

[vinylweatherman]

Don't forget all those casinos that Royally screwed you Americans over their sudden and unnanounced withdrawals, leaving broken promises, confiscated part-finished promotions etc; and especially those whose CS were instructed to LIE over "that weekend" about the TRUE reasons why you were having "problems" with the October bonus code that Sunday - they claimed it was just a US BONUS ban, and you could deposit & enter all the other promos, those who did had their accounts LOCKED overnight into Monday, and had to wait a month or more for the return of those deposits.

If enforcement is stopped, then it will be back to how it was, with it being neither legal, nor illegal, to gamble and transact, and would be down to individual banks and card issuers whether or not to block "gambling" transactions, and this will be a good deal harder now that the casino industry has evolved work arounds for UIGEA implemetation.

If regulation follows, all these casinos will leap at the chance to get back into the US, some 80% of the former market, and will have to hope their target audience have short memories

[Mousey]

Originally Posted by vinylweatherman

Don't forget all those casinos that Royally screwed you Americans over their sudden and unnanounced withdrawals, leaving broken promises, confiscated part-finished promotions etc; and especially those whose CS were instructed to LIE over "that weekend" about the TRUE reasons why you were having "problems" with the October bonus code that Sunday - they claimed it was just a US BONUS ban, and you could deposit & enter all the other promos, those who did had their accounts LOCKED overnight into Monday, and had to wait a month or more for the return of those deposits.
If enforcement is stopped, then it will be back to how it was, with it being neither legal, nor illegal, to gamble and transact, and would be down to individual banks and card issuers whether or not to block "gambling" transactions, and this will be a good deal harder now that the casino industry has evolved work arounds for UIGEA implemetation.

If regulation follows, all these casinos will leap at the chance to get back into the US, some 80% of the former market, and will have to hope their target audience have short memories

I may be only a mouse, but I can assure you that when it comes to getting shafted... I've got the memory of an elephant. I lost my folder on my old computer where I had puposely placed dead desktop shortcuts to casinos who bailed out before the ink was even dry on the UIGEA. But I think I remember most of them.

Edit:
P.S. .... I *heart* Barney. (And Dr. Paul, Too.)

[anniemac]

VWM, I think we have all learned a good lesson regarding good/bad casinos. Most of us US gamblers have learned the difference and won't be jumping back on the bankwagon without due diligence.

However, I for one, will be glad if I don't constantly have to look over my shoulder so to speak regarding my bank account and gambling. So anything that will help keep "Big Brother" out of my back pocket will be greatly appreciated.

[Mousey]

Originally Posted by winbig

After the latest hearings on the regulation of the UIGEA, I don't see how this bill could NOT pass. It's hard to argue with common sense.

Does anyone have a link to the bill itself? I can't find it...

Maybe gov track will help....

http://www.govtrack.us/congress/bill.xpd?bill=h110-5767

The text of this legislation is not yet available on GovTrack. It may not have been made available by the Government Printing Office yet.

Maybe it it will be up by early next week.

[winbig]

Originally Posted by Mousey

Maybe gov track will help....

http://www.govtrack.us/congress/bill.xpd?bill=h110-5767

Maybe it it will be up by early next week.

Ahh, they must have just put that up. All I got earlier when searching for HR 5767 had to do with sex offenders...lol

http://www.govtrack.us/congress/bill.xpd?bill=h109-5767

[jetset]

Good for Barney! This report is getting very good media coverage everywhere and Dow Jones seems to have been the first agency to pick it up.

VWM makes an astute observation when he says:

"If enforcement is stopped, then it will be back to how it was, with it being neither legal, nor illegal, to gamble and transact, and would be down to individual banks and card issuers whether or not to block "gambling" transactions, and this will be a good deal harder now that the casino industry has evolved work arounds for UIGEA implemetation."

HR2046 (the IGREA) remains the winning bet eventually imo.

[winbig]

I just wonder if the major players (32Red, etc) will move back and open up to the USA again once the UIGEA is dropped.

Which reminds me - I had to laugh at one comment made during those hearings regarding the banks to break all ties to countries that these casinos are based in. Needless to say she didn't mention the fact that a lot of them are in the UK.