US Rep. Frank Calls for Regulation

[s163999]

Finally, some good news! Thought you all would be interested.

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US Rep. Frank Calls for Regulation

Rep. Barney Frank, D-Mass., Chairman of the House Committee on Financial Services, today introduced his long-awaited Internet gambling bill and it is not at all what people had been expecting.

For several weeks, media reports have had the industry and U.S. online gamblers anticipating a full repeal of the Unlawful Internet gambling Enforcement Act (UIGEA), enacted October 2006, which prevents U.S. banks and credit card companies from processing payments to online gambling businesses outside the United States.

Under the bill, titled the Internet Gambling Regulation and Enforcement Act, the UIGEA would remain in place, as would the Wire Act. Banks and credit card companies would still be prevented from doing business with illegal online gaming operators. However, Section 5370 of Frank's bill provides a defense against the regulations that will soon be set forth by the UIGEA by proposing federal licensing and regulation of offshore Internet gambling companies.

 

[jetset]

Sounds a little like the recent Washington State concept of amending the original act with an "affirmative defence"

US legislation gets harder and harder to follow as time goes on....

 

[lots0]

Well I am not that happy.. I was hoping for a full repeal of the UIGEA.

However, regulation has been needed for some time.

And how else are the US land based casinos going to compete online with the companies form outside the US... Government Regulation... Who is going to have access to those regulators... some company based in South Africa or London or a company with offices in Washington D.C.?

See the land based casinos are not that dumb... Open the market up and then regulate it, then regulate all the outside competitors out of business. A common US business practice.

BTW - the odds that this new Bill will pass has GREATLY INCREASED by this strategy of Frank's.

 

[pokeraddict]

The fact that this allows states to opt out will make this an easy pass in my mind. There is no way in the word that anyone can be against this that is slightly in touch with reality. That being said I'm sure John Kyl will find something to cry about.

 

[dominique]

The actual bill:

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[Philosopher]

True, a full repeal would have been ideal, but the chances would have been almost 0.

Frank was pretty savvy in going about it this way. By regulating it AND creating revenue from it, he is taking away all of the ammo that could be used by his opposition. Problem gamblers, underage, terrorism...all things that were used to push the UIGEA through and ALL targeted under his new bill.

His opposition will look extremely hypocritical (more than normal) arguing against the bill now.

 

[sdaddy]

I was hoping for a full UIGEA repeal as well. At some point I'd like to hear the reaction of the major online gambling firms (Sportingbet, Cryptologic, Boss Media, etc.) that left the US market last year. Is this bill something they will support as a way for them to re-enter the US market?

One practical question I have about Frank's proposal is how the e-wallets would be affected. Would they have to be federally licensed as well in order to operate legally with the US? How would the US government know that a transaction with an e-wallet is only going to fund a licensed gambling site unless the e-wallet only allows funding to such sites?

 

[K777]

I guess there is no need to licence third party e-wallets. Credit cards issued by U.S. banks, ACH, Checks etc. - all these payment options will work within the borders of USA or a State.