With States such as Nevada, New Jersey and even Delaware all having Internet Gambling laws on the books, it was only going to be a matter of time until the federal government was back looking at the thorny problem again.
This time it’s Representative Peter King who’s leading the charge to bring online gaming back to the USA. Federal Legislation has always been the brass ring goal for advocates for online poker, and was brought into sharp focus by the events of Black Friday back in 2011. the issue with state by state regulation is particularly acute in regards to poker, as players need larger pools of players to play against in order to make the market sustainable. With the exception of California and Texas, single state regulation is always going to run into the spectre of small player pools.
This bill is designed to be totally comprehensive, and has many similarities to the Internet Gambling Regulation, Consumer Protection and Enforcement Act that was introduced in 2011 in a bi-partisan move by John Campbell and Barney Frank.
Included in the bill are provisions that:
- Requires states to be certified by the U.S. Department of Treasury to license potential operators. States may choose to participate in the national online gaming market without becoming a licensing agent, however;
- Authorizes federal funding to address problem gambling addiction, similar to what is in place for all other types of addiction;
- Gives states the freedom to opt-out of Internet gaming. Governors must notify the Department of Treasury that their state will opt-out within 120 days of passage of the bill, and opting out will NOT prohibit states from establishing their own intra-state online gaming regimes;
- Ensures mandatory implementation of technologies to protect against underage gambling using the commercial and government databases used for online banking to verify age and identity;
- Allows equal access to licenses for all providers, including Indian tribes and lotteries;
- Preserves the traditional authority of regulators to determine the suitability of online operators when evaluating license applications; and
- Contains high standards to thwart fraud, abuse and cheating to ensure fair games for customers.
As you’d expect, the PPA was very happy to hear about the bill, and members of their board were lining up to give comment:
Former Senator and current Chairman of the PPA, Alfonse D’Amato said “On behalf of the PPA membership and millions of poker players in the United States, I thank Congressman King for his commitment to protecting Americans’ freedom to play poker on the Internet,” He continued by saying, “States are already moving to regulate online gaming. In order to avoid a patchwork of state laws that limit player pools and provides consumer protections only to Americans in those states, it is time for Congress to step up and pass federal legislation.”
Morgan Stanley are on record as predicting Online gambling will be worth about $9.3billion in the US in 2020, which will be as much as Las Vegas and Atlantic City combined. The weight of numbers appear to be with those wanting to allow players to gamble in their own home, something John Pappas, the Executive Director of the PPA seems should be the deciding factor.
“Congress cannot ignore progress and the facts. Americans want the freedom to play online poker in a regulated market and states are filling the void. Already three states have authorized online gaming and several more are on the precipice of joining them,” He said. “Poker players recognize the benefits of a federal law over the current state-by-state approach. However, as more states lead, it will be difficult for Congress to follow – and even more difficult to see the necessity of federal legislation. We hope that all of Congress can work together and support this bill. We look forward to supporting this vital legislation and urge its swift movement through the legislative process.”
This isn’t the only move to regulate online gambling on a federal level. Texan Joe Barton has plans to introduce online poker legislation by the end of July, and Harry Reid has been working on a bill with Dean Heller for some time now.
