Posts Tagged ‘Barney Frank’
Poker Players Alliance Comments on Commerce Casino HR 2267 Stance
Recently, the Poker Players Alliance (PPA), the main lobbying force for the poker industry, launched a petition at PlayersBeforeProfits.com to reverse the Commerce Casino’s stance on critical internet gambling legislation. HR 2267, dubbed the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, was successfully marked up in the House Financial Services Committee last month and now waits for its time to be debated in Congress.
Nearly 7,000 players had signed the online petition at the time of writing and the PPA was shooting for 10,000. The push came as a result of an action alert sent by the PPA to its members and followed testimony in the House Financial Services Committee from the Commerce Casino’s Tom Malkasian. His testimony claimed in part that HR 2267 is “based on false revenue assumptions that would require removal of the right of any state or tribe to opt out of the bill in order to achieve the advertised tax revenue of $42 billion over ten years.”
Malkasian also highlighted that allowing illegal operators to receive licenses under HR 2267 equates to “locking in unprecedented market advantages that can undermine and destabilize the land-based casino gaming industry.” He also voiced concerns over HR 2267 conflicting with tribal compacts and allowing internet gambling sites to be located outside of the United States. The latter three concerns were each addressed during markup as part of a dozen amendments tacked onto the bill.
PPA Executive Director John Pappas told Poker News Daily, “They don’t want to compete with existing online operators or Harrah’s or Wynn or Google or anyone else who may get involved in internet gambling. They prefer to have their own fiefdom in California… A lot of lawmakers went out of their way to address their concerns via amendments, yet they still continue to oppose the bill.”
The PPA’s action alert merely called for players to contact the Commerce and express their disappointment with the casino’s stance towards the sweeping internet gambling legislation. Players took it upon themselves to suggest a boycott, which the PPA did not initially ask for. Pappas explained, “We felt that poker players can make those types of decisions on their own. We want to reserve a boycott and I don’t think it’s something we intended to call for. Should the Commerce continue to be obstinate, then we might revise our stance there.”
Pappas questioned why the Commerce wouldn’t be content to apply for a license under HR 2267 if the bill were to become law. The PPA’s main face speculated, “For a long time, they dominated the poker scene in California and they feel entitled to California’s online poker players’ money. Maybe they don’t feel that they’re as strong and won’t be able to compete.” On Friday night, Commerce Casino officials distributed a press release claiming support from the Bicycle Casino, Hawaiian Gardens Casino, and Hollywood Park Casino in opposition to Congressman Barney Frank’s bill.
As part of his House Financial Services Committee testimony, Malkasian likened legalizing internet gambling to legalizing marijuana, a comparison Pappas did not look kindly upon: “In essence, they’re calling the pro players endorsing sites drug dealers. That would offend me, especially when it comes from our purported friends. It wouldn’t have been shocking if it were from Focus on the Family or Congressman Bob Goodlatte, but when it’s coming from a supposed friend of poker because it doesn’t fit their business model, of course we’ll voice our concern.”
After an internal debate on the proper course of action, the PPA launched PlayersBeforeProfits.com. “We came to a decision after hearing from so many of our members,” Pappas told Poker News Daily. “We felt obligated to inform our members about it. Our goal is to get 10,000 signatures. We’ll go back to the Commerce and see if they’ve revaluated their position after we do.”
Stay tuned to Poker News Daily for the latest legislative developments.
Bicycle Casino, Hawaiian Gardens, Hollywood Park Side with Commerce
Let the battle lines be drawn. Several days after the Poker Players Alliance (PPA) issued a petition to reverse the Commerce Casino’s stance against pro-internet gambling legislation in the United States, more casinos have come onboard to strike down the bill.
In a letter issued to the press late Friday night from Commerce Casino Board members Tom Malkasian and Haig Papaian, it was revealed that the Bicycle Casino, Hawaiian Gardens, and Hollywood Park also oppose Congressman Barney Frank’s (D-MA) HR 2267. None of the three additional casinos was quoted in any way.
Calling industry lobbying groups like the PPA “special interest groups receiving funds from illegal offshore gaming operators,” Malkasian and Papaian assert, “Poker players deserve to know the real facts so let us be clear: We support online poker and we are working hard to make sure it will benefit all Americans. America’s poker community should be united in opposing the Frank legislation that would ship jobs, revenue, and taxes beyond our communities. We need to work together to keep American dollars at home.”
The authors of the letter claim to employ more than 20,000 workers in California, a state that has been hit with a massive budget shortfall. It also cites a 2008 study from the California Public Policy institute saying that 70% of California residents use the internet and “according to another study in 2009, Californians wager an estimated $13.4 billion annually. That makes California the largest internet gaming market in the world, and without state legislation to protect it, critically-needed billions will be captured by offshore and out-of-state operators never to return.”
On Friday, PPA Executive Director John Pappas told Poker News Daily that 6,000 players had signed an online petition found at PlayersBeforeProfits.com to reverse the Commerce Casino’s stance. The organization was gunning for 10,000 names in total.
In response to the press release from the Commerce Casino Board members, UB.com pro Annie Duke chided via Twitter, “Your press release might be more credible if you got the bill number correct. It’s HR 2267.” The press release cites the Commerce Casino’s opposition to HR 4976, the tax companion bill to HR 2267 proposed by Congressman Jim McDermott (D-WA). However, Malkasian’s testimony in front of the House Financial Services Committee last month was wholeheartedly against Frank’s HR 2267.
In reaction to the harsh opposition set forth by the Commerce Casino, Pappas commented, “There are requirements in HR 2267 that companies set up at least 50% of their operations in the United States. On their concern of illegal operators, anyone who has been operating illegally won’t be able to get a license. It’s pretty clear their only concern is that they don’t want to compete.” A dozen amendments were added to HR 2267 in a markup hearing held one month ago to the day addressing many of the Commerce Casino’s concerns.
The Commerce Casino’s statements wraps up by saying, “We strongly support poker-only legislation. California lawmakers should be the first to bring an illegal enterprise under legal supervision, provide needed consumer protections, and capture revenue that can benefit our state first.” An e-mail address of supportonlinepoker@commercecasino.net is given for players looking for additional information.
Among the 6,000 poker players that have signed the PPA’s online petition are Patrik Antonius, Tom Dwan, Phil Ivey, John Juanda, Erick Lindgren, Joe Sebok, and new PokerStars pro David Williams. All that’s required to sign is your name, city, and state. The PPA has even gone so far as to provide an avenue for players to Tweet the Commerce Casino automatically. Alternately, you can leave your telephone number and the PPA will personally patch you through to the Commerce Casino.
The addition of the Bike, Hawaiian Gardens, and Hollywood Park may open the rift even further between online poker players seeking legislation and the brick-and-mortar casinos they placate. Calls for a boycott of the Commerce have surfaced and many of the aforementioned “illegal offshore gaming operators” sponsor pros like Ivey, Duke, and Sebok through their dot-net counterparts. The Bike and Commerce both hold World Poker Tour events, with the former fresh off crowning a champion in the Legends of Poker.
Stay tuned to Poker News Daily on Sunday for an exclusive response from Pappas.
Top Poker Pros Unite Against Commerce Casino Stance On Poker Regulation
Reacting to testimony by the vice chairman of the board of the Commerce Casino during hearings about online poker regulation in Congress, several top poker pros have taken on a protest of the card room.
During hearings in July in front of the House Financial Services Committee regarding HR 2267 – the bill Massachusetts’ Representative Barney Frank introduced called the Internet Gambling Regulation, Consumer Protection, and Enforcement Act – Tom Malkasian, who identified himself during his testimony as “an owner, board member and director of strategic planning of the Commerce Casino,” came out with a surprising opinion of the proposed law. In his testimony to the committee, he firmly stated, “I must testify in strong opposition to HR 2267 and urge Members of the Committee to vote against it, barring numerous and significant changes.”
Malkasian detailed in his testimony his opposition to the proposed law on several fronts. He first took on the proposed revenues that the law would bring in, saying that they were “built on false assumptions and conflicting representations.” He cites that some studies looked at the basis of operations for online gaming sites would be located in the United States, something that isn’t guaranteed in HR 2267. Malkasian looks at details demonstrating possible conflict regarding states opting in or out of the regulatory guidelines, leaving to question the actual revenues earned. Finally, Malkasian states that the regulatory framework is inadequate for the job at hand.
Malkasian’s testimony has riled many in the professional ranks of poker, to the extent of announcing a potential boycott of one of the top card rooms in California. The furor has reached a point that there is an actual website – called PlayersBeforeProfits.com – that people can visit to sign a petition. The site has also issued an “open letter” to the Commerce Casino to change its stance on HR 2267.
The letter states, “As dedicated poker players, both online and live, both professional and amateur, we are extremely disappointed in the position Commerce Casino has taken in opposition to federal legislation to license and regulate online poker. Your opposition puts your narrow corporate interests ahead of the interests of America’s poker players.”
The open letter goes on to tout the benefits of HR 2267, including the creation of “a U.S. regulated online poker framework in this country, requiring all online poker sites to measure up to strict safety and consumer protection standards – requirements that do not exist today. More importantly, this bill will create an open and competitive market, giving players a choice of many sites on which to play against others from across the country and the world.”
The statement finishes by saying, “It is disheartening that one of our own in the poker community is opposing good public policy that will keep players safe and preserve our rights to play poker online. We strongly urge Commerce Casino to support America’s poker players. Please change your position on HR 2267.”
The letter, which has been endorsed by nearly 1,100 people at the time of writing and signed by top pros such as former World Champions Doyle Brunson, Chris Ferguson and Greg Raymer, and players as diverse as “Poker After Dark” creator Mori Eskandani and online phenom Tom “durrrr” Dwan, has spurred reaction on several fronts. Through their Twitter feeds, several pros have also been ratcheting up the heat on the Commerce Casino to the point of a discussed boycott.
Poker News Daily guest columnist Annie Duke has been quite vocal over Twitter, saying “I and some other pros are boycotting them as well. I will give my business to a place that supports the players.” Rafe Furst sounded off on the controversy by Tweeting, “Tell @CommerceCasino to support poker players and change their position & support HR2267 – the online poker bill.” Daniel Negreanu waded into the waters as well by tweeting, “Boo @CommerceCasino testified against the online poker bill. Tell them to put players before profits & support HR 2267.”
Poker News Daily contacted the Commerce Casino and was told by an unnamed spokesperson that “a statement about the situation” would be forthcoming.
FBI Seizes $13.3 Million From Online Poker Processors
The owner of two payment processors for online poker sites has agreed to forfeit $13.3 million seized by the FBI in June of last year. Ahmad Khawaja, together with his two firms, Allied Systems and Allied Wallet, reached a civil settlement with the U.S. Government this week in order to keep from getting into further legal trouble.
Khawaja’s two payment processors were at the forefront a federal case involving online gambling fund transfers. Allied Wallet and Allied Systems actively processed funds to players from sites such as PokerStars, the world’s biggest online poker site. The companies also transferred money from outside the U.S. through wire transfers from people who understood that the money was being exchanged as part of the gambling operation.
According to a civil forfeiture complaint by the U.S. Government, the funds constituted proceeds of operating an illegal gambling business that were deposited between January 2009 and May 2009 in an account at Goldwater Bank in Scottsdale, Arizona. Those funds were traceable to PokerStars and other offshore online gambling companies, and the Federal Bureau of Investigation confiscated all $13.3 million at Goldwater Bank in June 2009.
The government has not bothered offshore online gambling sites since the Unlawful Internet Gambling Enforcement Act (UIGEA) was signed into law, instead primarily focusing its efforts on the payment processors that are aiding in completing the financial transactions. PokerStars wasn’t pleased when word of the settlement between Khawaja and the government was released.
“PokerStars does not condone efforts by processors to conceal the nature or purpose of funds used to play online poker,” a spokesperson for PokerStars said. “PokerStars has taken steps to ensure that processors properly disclose the nature of their business to their relevant financial institutions.”
Payment processors like Khawaja’s are being watched even more closely since the UIGEA’s regulations went into effect in June of this year. The law, passed in 2006, aims to stop online gambling by preventing credit card companies and banks from processing fund transfers for unlawful internet gambling. The fight to regulate online poker in the U.S. took a big step last month with the passage of Barney Frank’s H.R. 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. However, there’s still a long climb ahead in order to turn the bill into a law, leaving sites like PokerStars concerned in the meantime.
Even if legislation were to pass, there’s no guarantee PokerStars would even be allowed to conduct business in the U.S. One of the amendments added to the legislation during the markup phase was that any company that that has illegally done business in the U.S. would be prohibited from getting a license to operate in the States. PokerStars, Full Tilt Poker, and UB.com would fall under that category and likely be forced out of the U.S. gaming market if that amendment held up.
Stay tuned to Poker News Daily for the latest from Capitol Hill.
Kentucky Internet Gambling Lawsuit Amended to Include Party Gaming
In late March, the Commonwealth of Kentucky filed suit against Pocket Kings, the purported operators of Full Tilt Poker, seeking the amount of money lost by state residents between March 2005 and September 2009. Now, the complaint has been amended to include Party Gaming, which recently announced a merger with bwin.
Reacting to the news that Party Gaming, whose online poker site PartyPoker hasn’t accepted real money wagers from U.S. residents since 2006, was singled out was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan. iMEGA has been at the forefront of the fight to protect 141 internet gambling domain names that were seized two years ago in a separate legal battle and may ultimately face forfeiture. The case is pending in the Kentucky Supreme Court.
Brennan told Poker News Daily on Thursday, “This is a last minute ploy by the Commonwealth to try to force a settlement. I think they named Party because the company is engaged in a merger and they’re trying to use that to get money out of them. They’re probably trying to get Party to pay out some cash settlement. Party has been around for a while and nothing has changed other than they’re trying to undergo a merger.” Gambling911 reported that Kentucky attorneys are seeking funds lost by state residents between August 2005 and October 2006.
PartyPoker, whose parent company is publicly traded on the London Stock Exchange, vacated the U.S. market in 2006 after the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA). Attorney Jeff Ifrah speculated, “It’s unclear how long the Commonwealth has been researching the viability of claims against anyone. They may have been looking at Party for a while now, even before the merger announcement. They were certainly looking at them last year when they started thinking about putting a complaint together.”
Party Gaming has already signed a non-prosecution agreement with the U.S. Department of Justice and one of its co-founders, Anurag Dikshit, faces sentencing later this year after admitting Wire Act violations. Doubting the success of Kentucky’s case against Party Gaming was Ifrah, who told Poker News Daily, “In their complaint against Party, they continue to omit any reference to any specific loser. They’ve made broad references to losers and broad references to Kentucky residents, but there’s still no proof. They’re hoping a judge will grant them discovery.”
PartyPoker was once the largest online poker site in the world and, when it departed the U.S. market in 2006, was in the midst of its Monster promotion. According to PokerScout.com, PartyPoker boasts a seven-day running average of 3,350 real money ring game players and is the third largest site worldwide behind PokerStars and Full Tilt. PartyPoker ranks just ahead of Playtech’s iPoker Network and features World Poker Tour host Mike Sexton, “High Stakes Poker” hostess Kara Scott, and bad boy Tony G as its sponsored pros.
Brennan summed up the news by calling out Kentucky’s attorneys, who are allegedly working on a contingency basis: “It is the plaintiff’s attorneys who have now used the name of the Commonwealth of Kentucky to try to blackmail Party Gaming and use the occasion of their merger as an opportunity to get some sort of settlement out of them. It’s about as contemptible and reprehensible as anything I can imagine.”
Curiously, PartyPoker was not named in the original lawsuit seeking the forfeiture of 141 domain names, including those belonging to PokerStars, Absolute Poker, UB.com, and Full Tilt.
Party Gaming likely won’t reenter the U.S. market until a full licensing and regulatory framework is in place. A bill proposed by Congressman Barney Frank (D-MA) would do just that and passed out of the House Financial Services Committee two weeks ago. However, with the current Congressional session quickly coming to an end, its future appears to be in doubt. The bill, numbered HR 2267, boasts 70 co-sponsors.
Tags: 2009, 2011, absolute poker, Barney Frank, high stakes, kara scott, legal, Online Poker, pokerstars
NFL Drops Opposition to Internet Gambling Regulation, Consumer Protection and Enforcement Act
Tags: Barney Frank
Will HR 2267 Be Beneficial for Washington State Players?
HR 2267, Congressman Barney Frank’s (D-MA) Internet Gambling Regulation, Consumer Protection, and Enforcement Act, made it out of the House Financial Services Committee in late July. Across the United States, online poker players have been wading through the bill’s language and dozen-plus amendments to comprehend what the lay of the land will be should it become law.
In Washington State, playing online poker is a Class C felony. HR 2267, contrastingly, creates a Federally approved licensing and regulatory regime and would give each state one full legislative session to opt out. Accordingly, if Washington State elected not to opt out of the bill, online poker players could be returning to the felts in droves.
Poker Players Alliance (PPA) Washington State Director Lee Rousso told PocketFives.com in a post last week, “Washington could opt out of HR 2267. It is a flaw in the bill that the opt-out can be communicated by the governor. It would have been a better bill if legislative action were required to opt-out. It is not even clear that a legislative act could force the governor to opt-in.” Therefore, opting out of HR 2267 appears to be a simple task. However, whether government officials in Washington State would do so remains to be seen.
Rousso, who has been fighting a legal battle to overturn the statute that makes playing online poker a felony, added, “In spite of these concerns, I think it is more likely that Washington would not opt-out. Although Governor Gregoire claims to be opposed to gambling, it is also true that she has never met a tax that she did not like. Once internet poker has the Federal seal of approval, it is far more likely that Washington would tax it rather than ban it.”
HR 2267’s tax companion bill, Congressman Jim McDermott’s (D-WA) HR 4976, prescribes that states and tribal governments can extract 6% of deposits made onto licensed internet gambling sites. McDermott, whose home state imposes the harshest penalty in the country for playing internet poker, also proposed a 2% Federal tax in his bill. Both revenue measures would help to eradicate massive budget shortfalls that have plagued states and the U.S. Government.
During the July 28th markup hearing of HR 2267, Congressman Joe Baca (D-CA) proposed an amendment that would have required states and tribes to opt into the internet gambling scheme rather than opt out. Supporting the amendment was Ranking Member Spencer Bachus (R-AL), who told his fellow lawmakers, “An opt-in is stronger than an opt-out. If we’re going to legalize gambling on every iPod in America… it sweeps away all state laws.”
Frank responded by asserting, “You’re setting a dangerous precedent that your use of the internet is subject to state law.” Frank added that he believed Baca supported gambling, but wanted to protect those who engage in it in California from competition. Congressman Dan Maffei (D-NY) supported the idea that Baca’s amendment was simply a way to kill the bill: “You would have just a crazy quilt system if you had states decide whether to opt in or out. If we were to approve [Baca’s amendment], it would be a stealth way of gutting the bill.”
In May, the PPA staged a rally on the steps of the Washington State Supreme Court in Olympia following Rousso’s testimony there. Rousso primarily argued that the bill making online poker a Class C felony violates the Commerce Clause of the United States Constitution because it protects in-state interests from out-of-state competition. Rousso told Poker News Daily that month, “The Commerce Clause of the U.S. Constitution doesn’t allow that. I think it’s clear that online poker is international commerce, which means the states can’t regulate it.”
Stay tuned to Poker News Daily for the latest legislative headlines.
Atlantic City Hosts New Jersey Gambling Summit
On Friday, a “who’s who” in the New Jersey gambling world turned out to the Atlantic City Convention Center. The topic: how to rejuvenate the city’s fledgling casinos and, at the same time, preserve the storied horse racing industry in the northern part of the state.
On July 21st, New Jersey Governor Chris Christie released a plan to resurrect an industry that has come under fire in part due to competition in neighboring states like Delaware and Pennsylvania. A Philadelphia Inquirer story published on Saturday morning detailed Christie’s economic plans: “It calls for the creation of a state-controlled Atlantic City Tourism District, streamlining casino regulations, keeping all gaming revenue collected by the Casino Reinvestment Development Authority in Atlantic City, and better marketing of the city as a brand, among other things.”
Economists, representatives of organized labor, and other key industry leaders gathered in South Jersey on Friday. Among them was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who told Poker News Daily about the attendees’ reaction to a possible intrastate internet gambling framework: “There wasn’t one sense either way. The bigger issue was North Jersey versus South Jersey economic developments issues. The question: How do we save the horse racing industry in the North and preserve the gaming enterprises in the South?”
An intrastate internet gambling bill proposed by State Senator Raymond Lesniak has been voted out of a New Jersey Senate committee. However, it has yet to be discussed by the state’s assembly. Brennan noted that revenues from licensed intrastate gambling outfits could be used to fund purses at racetracks like Monmouth Park in Oceanport and the Meadowlands Racetrack in East Rutherford.
According to the Inquirer, New Jersey State Senator Paul Sarlo commented on Friday, “Instead of new casinos in other states, why not a new world-class casino in the shadow of New York? We could keep the revenues in New Jersey.” Also speaking on Friday were Mark Juliano, CEO of Trump Entertainment Resorts, and Melanie Brenner of the Poker Voters of America.
Lesniak’s bill will not be deemed “dead” at the end of the year like Congressman Barney Frank’s HR 2267 will be on Capitol Hill. Instead, New Jersey terms aren’t expiring in 2010, leaving the door open for future discussion of the intrastate internet gambling measure. Brennan explained, “Today’s event was made up of the political leadership of the legislature weighing in on the bill, so I’d say it has pretty good prospects.”
According to a separate Inquirer story, about 300 people made their way to Atlantic City on Friday. In addition to monitoring Lesniak’s bill, iMEGA has been heavily involved in the push to bring sports betting to New Jersey as a way to boost revenues. In the opening days of June, Lesniak’s bill was approved out of the New Jersey Senate Wagering and Tourism Committee by a 3:1 margin.
To support the bill, iMEGA commissioned a study by Econsult that revealed up to 1,900 jobs could be created by the addition of intrastate internet gambling. In addition, Lesniak’s bill could result in up to $250 million in annual gross gaming revenue and up to $55 million in annual state tax revenue. Brennan explained in a June press release, “Being an engine for real job creation and attracting investment, and the opportunity to be the global hub for a high-tech industry is a much more meaningful opportunity for legislators to consider.”
Stay tuned to Poker News Daily for the latest from New Jersey.
August 4th – Daily Deal
Hello, I’m Sean Gibson and welcome to this express edition of the Daily Deal by Poker News Daily.
In breaking news from Cake Poker, the site will release an update to the new client in the near future to fix a potentially hazardous security issue. According to Cake Poker Card Room Manager Lee Jones, the fix implements OpenSSL into all client-server communication. On Tuesday night, the old Cake Poker client received the update correcting the security flaw.
PokerTableRatings.com, which first reported the security vulnerability on July 26th, has promised to take the new version’s updated Beta client for a test drive. The Cake Poker Network used an XOR-based encryption similar to the security issue experienced on the CEREUS Network back in May. PokerTableRatings.com noted that Cake Poker Network skins like DoylesRoom and Bruce Poker have not yet received an update.
On Tuesday night, the 2010 World Series of Poker Tournament of Champions aired on ESPN. This week marked the last preliminary tournament leading up to the Main Event, which will begin next Tuesday at eight P-M Eastern Time. Huck Seed defeated Full Tilt Poker’s Howard Lederer in the finale of the Tournament of Champions and banked five-hundred thousand dollars. The tournament appeared on the WSOP slate for the first time since 2006, when Mike Sexton beat Daniel Negreanu for the title.
Finally, online poker players have been celebrating the passage of H-R two-two-six-seven by the House Financial Services Committee last week. However, now that the House is out of session for its summer recess, what will the future of the bill be?
PND asked Poker Players Alliance Executive Director John Pappas what we can expect. He responded,
“What Barney Frank indicated in the committee hearing last week was that his intent was to move HR two-two-six-seven simultaneously with the revenue bill in the Ways and Means Committee. In September, we hope to have the Ways and Means Committee mark up their bill and bring both bills to the floor.”
Less optimistic was Interactive Media Entertainment and Gaming Association Chairman Joe Brennan, who told PND, “Frank’s bill has no companion bill in the Senate. All of these amendments were thrown in and it’s a bill that doesn’t have a chance of passing before the end of this Congress.”
Congress returns to Capitol Hill on September tenth.
That does it for this express edition of The Daily Deal, and as always be sure to check back with us all day long for the latest in poker news. This is Sean Gibson reporting for Poker News Daily dot com.
Future of Barney Frank Online Poker Bill Unclear
Last week, online poker players across the United States watched as HR 2267 passed out of the House Financial Services Committee by a 2:1 margin, 41-22. The winds of change are clearly in the air, but how long will the internet poker world wait until regulation finally comes to fruition?
Among those ardently working on Capitol Hill is Poker Players Alliance (PPA) Executive Director John Pappas, who told Poker News Daily on Tuesday that he was elated to see the somewhat bipartisan support for HR 2267: “I was really pleased with the overwhelming majority and the bipartisan support for the legislation. If you look back just four short years ago, the House passed an Unlawful Internet Gambling Enforcement Act (UIGEA)-like prohibition by a wide margin. Just two years ago, we had a bill defeated on a 32-32 stalemate. Now, we have a pro-internet poker bill that passed by a 2:1 margin.”
Time is quickly running out on the 2010 legislative session, with less than a month remaining for Congress to act. The lawmaking body is on summer recess until September 10th and has a target adjournment of October 8th for general elections. Pappas shared the PPA’s timeline for action: “What Barney Frank (D-MA) indicated in the committee hearing last week was that his intent was to move HR 2267 simultaneously with the revenue bill in the Ways and Means Committee. In September, we hope to have the Ways and Means Committee mark up their bill and bring both bills to the floor.”
The revenue companion bill to Frank’s HR 2267 is HR 4976, introduced by Congressman Jim McDermott (D-WA). It was discussed in the House Ways and Means Committee in May and boasts four co-sponsors. Meanwhile, HR 2267 lacks a supported counterpart in the Senate, where Senator Robert Menendez’s (D-NJ) S 1597 has not been discussed in any committee and offers no co-sponsors.
Among the various amendments added to HR 2267 last week included one by Congressman Brad Sherman (D-CA) forbidding those internet gambling sites operating illegally in the United States now from receiving licenses. The inclusion has raised the question as to whether rooms like PokerStars and Full Tilt will exist in a regulated regime. Pappas speculated, “Most of the online poker sites have well-reasoned legal opinions that say they’re not operating in violation of any Federal law. It’s hard to prove that someone is operating illegally if you haven’t convicted or indicted anyone. How can they be considered illegal if they continue to operate without any legal repercussions?”
Not optimistic about HR 2267’s chances of becoming law before the end of the legislative session was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who told Poker News Daily, “Frank’s bill has no companion bill in the Senate. All of these amendments were thrown in and it’s a bill that doesn’t have a chance of passing before the end of this Congress.”
Brennan also questioned whether the 14 amendments added to HR 2267 increased its chances of approval in the House: “On the face of it, it was a difficult bill made even more difficult by all of those amendments. The post-markup bill is something that anyone who is in the industry now should be concerned about. It’s so nakedly tilted away from current operators to establish a standard for individuals and companies as far as licensure.”
An amendment proposed by Ranking Member Spencer Bachus (R-AL) and Michele Bachmann (R-MN) prohibits anyone who has “knowingly participated in, or should have known they were participating in, any illegal internet gambling activity” on or since the passage of the UIGEA in 2006 from receiving a license. Consequently, how the clause is enacted will play a major role in determining who is able to serve the U.S. market. Companies like Party Gaming, for example, have signed non-prosecution agreements with the U.S. Department of Justice.
Pappas added that the PPA has seen a spike in donations since the markup hearing. Read our complete recap of the HR 2267 markup.
Internet Gambling Legislation: What’s Next
July 30th – Daily Deal
Topics: HR 2267, statement from Alfonse D’Amato, bwin/PartyGaming merger and Vegas Casinos headed to the auction block.
Coming up on the Daily Deal, we’ll continue the discussion about the house committee passing HR 2267, get a statement from the PPA’s Alfonse D’Amato, find out which two poker superpowers are merging, and find out which vegas casinos are headed for the auction block.
Hello, I’m Sean Gibson and welcome to the Daily Deal by Poker News Daily. We start once again with news out of Washington, as the victory celebration continues for poker. Thanks to the work of Barney Frank and the Poker Players Alliance, progress was made with the committee passing of HR 2267. It might just be a first step in a long journey to get online poker legalized in the United States, but at this point many are very encouraged with the progress. The bill is now heading to the House of Representatives for a majority vote. Alfonse D’Amato, chairman of the PPA said,
“Congress has a choice — it can license and regulate it to provide government oversight and consumer protections, or our lawmakers can stick their heads in the sand, ignore it, and leave consumers to play on non-U.S. regulated websites in all 50 states. I’m glad the Financial Services Committee today overwhelmingly chose to act and protect Americans as well as preserve the fundamental freedoms of adults and the Internet.”
Big news out of Europe as a long rumored merger in the online gaming industry was revealed when Austrian based BWIN and Gibraltar based PartyGaming announced their merger. The pact is expected to be completed by the first quarter of two thousand eleven and will create the largest publically traded online gaming conglomerate in the industry. According to Gaming Intelligence, the two companies combined to earn six hundred and eight two million euros in 2009. The merger does have some roadblocks left to clear, one of which is approval of seventy five percent of each company’s stock holders. Stock prices of both companies saw sharp increases in value once the announcement was made.
News out of Vegas tells us after months of legal troubles, Station Casinos filed papers indicating that it has reached a settlement with a group to keep the company afloat and out of bankruptcy. Some of the properties include the Red Rock Resort and Boulder and Palace Station. Another eleven of Station’s properties are going to go up for auction next week.
Well that does it for today’s edition of The Daily deal and we thank you for tuning in. Be sure to follow us at twitter dot come slash poker news daily and come back to our site for the latest poker news and interviews. I’m sean Gibson wishing you a fantastic poker weekend!
Tags: 2009, Barney Frank, interview, legal, Online Poker, poker player, Poker Players Alliance, usa, vegas
What Might Poker Boom II Look Like?
With Barney Frank’s Internet Gambling Regulation, Consumer Protection, and Enforcement Act finally passing in the House Financial Services Committee this week, dreams of fully legal and regulated online poker have been revived in the poker community. Sure, there are some people who would prefer the status quo (and these people are mistaken, but that’s a whole other discussion), but most look at the 41-22 vote, despite the bill’s flaws, as a very positive step in the right direction. There is a long way to go in the legislative process, but if we eventually do see the United States market open up for legal online poker, what will things look like? What follows is my little brainstorm on what we might be able to expect and not expect from a potential Poker Boom II.
Fish Population
Most people expect that if the flood gates open to the U.S., millions upon millions of American fish will flood the poker waterways. We will return to the Golden Age of poker, circa 2004-2005, when it seemed like everyone was terrible at the game and profits could flow in for solid players as easily as water comes out of the tap.
I don’t really see this happening. To an extent, yes, but not as much as some like to fantasize. Naturally, if poker becomes completely legal in the U.S., there will be a significant initial injection of casual players who were afraid to play when it was “illegal.” They will also be encouraged to play since getting money to and from the sites will be easier. So, yes, games will likely become softer, at least for a while. But we won’t see pre-UIGEA fish levels. Why? Mainly because even the fish are more skilled today than they were six or seven years ago. Keep in mind that before the poker renaissance, Fixed-Limit Hold’em was much more popular than No-Limit Hold’em. Much of the poker population was new to No-Limit, so as No-Limit became the game of choice, the average skill level was fairly low. Obviously, there will be plenty of new and poor poker players in Poker Boom II, but on average, the skill level of the population will be higher than it was back in the day because of all of the educational tools we now have at our disposal.
Poker Room Competition
I have no doubt that, unless the costs are insanely prohibitive, that all of the poker rooms and networks that have stayed out of the U.S. market will jump right back in should poker become 100 percent legal. And I think we all know that the U.S.-based brick and mortar gambling firms will be the first in line for licenses. There is some question right now as to whether the big players like PokerStars and Full Tilt will be allowed to stay in the game, but my guess is that they will be major players one way or another. So, there should be a lot of competition, at least in the early going.
I predict, though (and I have no evidence to support this), that some of the smaller existing rooms/networks and, maybe even some of the bigger ones, will join up with the land-based American casino giants. It might just be a partnership, with the online poker room providing its technology and customers and the American company providing the U.S.-base of operations, “respected” name, and fast-track to a license. It could also be in the form of an American firm buying one of the online rooms as a quick way to get up and running.
In the long run, therefore, competition may narrow a bit (understanding that other new poker rooms will likely sprout up, too). And that’s not a bad thing. Competition is great. It is a catalyst for creativity, innovation, and progress, and gives customers choices. But in all honesty, I don’t know if I want too much competition in online poker, as it has the potential to split up the player base. One nice thing about online poker is that we can play on more than one site simultaneously, but with players so beholden to rakeback nowadays, it seems that more people stick to just one or two rooms so they can build up rakeback and rewards, rather than playing at whichever rooms have the best games or promos at any given time. I’d rather have a handful of large rooms competing hard against each other than scads of smaller rooms trying to eke out an existence.
Bonuses
Remember when the likes of Party Poker and the Prima (now Microgaming) rooms routinely offered sweet deposit and reload bonuses several years ago? Those easy-to-earn, high value bonuses were my ticket to a growing bankroll. I do think that when the U.S. market opens up and the poker rooms roll in, there will be a lot of big bonuses offered as they all try to fight for our funds, but the days of the half-hour, $200 bonus are over. The poker rooms wised up a while back, realizing that they could offer high dollar amount bonuses and attract customers, but make them fairly difficult to earn, especially for low stakes players. I don’t think this will change. We might see some player-friendly bonuses early on, but I don’t think they will last.
Rake
One of the biggest fears poker players have about legalized and regulated internet poker is the taxes that will be imposed on the poker rooms will be passed through to the players in the form of higher rake. I don’t believe this will happen, and if it does, it will be very minor. I admittedly don’t have any numbers in front of me to back this up, but it makes sense to me that the poker rooms will save enough money from the reduced expenses of funds processing to make up for the potentially higher costs from taxes. Right now, online poker money processing is messy; poker rooms have to constantly look for new processors to skirt U.S. regulations and these processors likely aren’t as cheap as they once were. The poker rooms would probably be more than willing to pay a gaming tax if it meant slashing payment processing costs.
BLOG – A Response to Senator Spencer Bachus
July 29th – Daily Deal
Special Edition recap of H.R. 2267 passing in committee hearing.
On today’s edition of The Daily Deal, we have a special edition for you today. We’ll recap yesterday’s huge victory for poker in the United States, find out what amendments were added and find out what’s next for the bill.
Hello, I’m Sean Gibson and welcome to The Daily Deal, brought to you by Poker News Daily. There is big news out of Washington as the house financial services committee met on Wednesday to discuss HR 2267. The bill, introduced by Barney Frank, calls for internet gambling regulation, consumer protection and enforcement. Many representatives were on hand to file amendments and make their voices heard. After several hours of debate, the bill was passed by a vote of forty-one to twenty-two. This marks the first of what will be many steps to be taken in order to regulate and fully legalize online poker in the United States.
The committee began discussion on provisions of the bill in the markup phase, which is where a congressional committee makes changes to a bill before it is voted on. Now that it has passed that step, it will go to the House of Representatives for another vote. Should it receive a majority vote there, it would then be passed along to the Senate for another majority vote, before being signed into law by the President.
Several amendments were made to HR 2267 on Wednesday, with each being handled invidiually and voted on by the representatives in attendance. Thirteen amendments passed, with the first being that sites that have intentionally broken internet gaming laws will be forbidden to get licenses in the United States. Other amendments include many that protect minors from being solicited via email or advertisements while others force all facilities of licensees that operate do so completely within the borders of the United States.
This marks a huge victory for the poker industry and those that want to enjoy the freedom of playing legally in the United States. Although it is just the first of many steps, the overwhelming margin of victory for the bill is a good indicator of its potential in congress.
The Poker players alliance, led by executive director John Pappas said,
“We commend the lawmakers who helped make H.R. 2267 stronger through a variety of consumer protection mandates … we thank Representatives John Campbell, Mary Jo Kilroy, and Melissa Bean for their thoughtful additions to the bill and their interest in preserving the rights of adult poker players in their districts.”
PokerStars has come out in support of HR 2267, despite the first amendment to the bill which might prevent them from doing business. It is pokerstars’s stance that they have been operating legally, and therefore, not affected by that first amendment. Whether that is true or not, and whether the bill is passed or not, remains to be seen.
Thanks for joining us for this special edition of the daily deal and as always you can follow us at twitter or bookmark our site for our daily updates. I’m sean gibson wishing you deep runs in all your tournaments!
Poker Players Alliance Reacts to Passage of HR 2267
The tireless work of Rep. Barney Frank and the Poker Players Alliance finally made some progress Wednesday as HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, passed the House Financial Services Committee by a vote of 41-22. The result can be viewed as a small but important victory for the poker community, on a battle that has been fought over and over again on Capitol Hill over the past few years.
The bill, which could ultimately lead to the legality and regulation of online poker in the States, will now be sent to the House of Representatives for more amendments and a majority vote. Should the bill get the majority vote from the House of Representatives, it would then be passed along to the Senate for another majority vote, before being signed into law by the President.
Wednesday’s win was just the first of many in order to regulate online poker in the United States, but the PPA was very encouraged by the result.
“The fact is, online poker is not going away,” said Alfonse D’Amato, chairman of the PPA. “Congress has a choice — it can license and regulate it to provide government oversight and consumer protections, or our lawmakers can stick their heads in the sand, ignore it, and leave consumers to play on non-U.S. regulated websites in all 50 states. I’m glad the Financial Services Committee today overwhelmingly chose to act and protect Americans as well as preserve the fundamental freedoms of adults and the Internet.”
The committee spent hours Wednesday amending HR 2267 and several modifications were made to the bill. They include mandatory implementation of technologies to protect against underage gambling; high standards to prevent fraud, abuse and cheating, to ensure fair games for customers; requirements for operators to set daily, weekly or monthly limits on deposits and losses to monitor and detect individuals with excessive gaming habits; and requirements to ensure that bettors are restricted from using credit cards to gamble on the Internet.
“We commend the lawmakers who helped make H.R. 2267 stronger through a variety of consumer protection mandates,” said John Pappas, PPA executive director. “In particular, we thank Representatives John Campbell, Mary Jo Kilroy, and Melissa Bean for their thoughtful additions to the bill and their interest in preserving the rights of adult poker players in their districts.”
One area of concern lies within the first amendment discussed on Wednesday, which restricts sites that have intentionally broken Internet gaming laws from getting a license to conduct business in the United States. This will likely affect larger online poker sites such as PokerStars, Full Tilt Poker and the old Ultimate Bet, all of which allowed players from the U.S. to play on their site following the passage of the UIGEA. The amendment, which was introduced by Congressman Brad Sherman, passed by a voice vote.
In a press release following the hearing, the PPA made the following statement regarding the amendment: “There is still much work to be done and areas of policy in this bill that must still be addressed. To be clear, despite the concerns of some of our members, nothing in the Committee-passed legislation precludes lawful Internet poker-only operators whom U.S. players know and trust today from the opportunity to operate under a regulated system. The PPA will work with House and Senate lawmakers to ensure that the final legislation produces the best regulated online gaming environment for the consumer.”
Stay tuned to Poker News Daily for the latest from Capitol Hill.?
U.S. House Committee Votes in Favor of Online Gambling Regulation Bill
Should it become law, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act of 2009 would establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses authorizing them to accept bets and wagers from individuals in the United States.
The Act passed in the House Financial Services Committee by margin of 41-22 and must now go through both the full House and Senate before becoming law.
According to the Committee, the legislation comes in response to the Unlawful Internet Gambling Enforcement Act (UIGEA), which restricted the use of the payments system for Americans who gamble online.
The new act will require licensees to take appropriate safeguards to prevent fraud, money laundering, underage and compulsive gambling.
It also contains protections to prevent minors from gambling online; prevents inappropriate online advertising targeted toward underage or compulsive gamblers; prohibits licensees from accepting bets or wagers from persons on the self excluded list of compulsive gamblers and persons delinquent with child support payments; prevents the use of a credit card to gamble online; requires that players set financial loss limits; strengthens regulatory requirements regarding integrity and fairness; bans violators of federal and state gambling laws from obtaining a license; and requires a substantial U.S. presence as a condition of obtaining a license.
PokerStars, the World's largest online poker site, has come out quickly to applaud the Committee's support of the bill.
"The bill, sponsored by Committee Chairman Barney Frank, offers a long overdue common sense approach to Internet gaming regulation in the United States," reads a release.
"PokerStars wholeheartedly supports the efforts of Chairman Frank and the bill's proponents. This bill represents the most significant U.S. legislative accomplishment in the history of the Internet gaming industry."
Although PokerStars has continued to allow U.S. Players on its site through the passage of the UIGEA, the company believes its activities in the U.S. are and at all times have been lawful and will not prevent the organization from obtaining a license should the bill become law.
"PokerStars maintains its strong support for H.R. 2267 and encourages the full House and ultimately the Senate to move quickly to secure passage during the current Congressional term," said Paul Telford, PokerStars' General Counsel.
"PokerStars, a pioneer in operating online poker under stringent regulatory frameworks, looks forward to working with incumbent and new operators in promoting a safe and healthy online poker industry in the United States, as it currently does under similar licensing models in Italy and France."
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House Financial Services Committee Votes to Approve Barney Frank’s Internet Gambling Legislation
HR 2267 Passes House Financial Services Committee
After postponing the hearing on Tuesday, the House Financial Services Committee met on Wednesday to discuss Rep. Barney Frank’s proposed bill H.R. 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. Many representatives were on hand to file amendments and make their voices heard, and after several hours the bill was passed by a vote of 41-22, finalizing the first of many steps to be taken in order to regulate online poker in the United States.
The hearing got underway just after 10:00 a.m. ET and the committee began discussing provisions of the bill in the markup phase. This is the phase where a Congressional committee makes changes to a bill before it is voted on and eventually sent to the House of Representatives for another vote. Should the bill get the majority vote from the House of Representatives, it would then be passed along to the Senate for another majority vote, before being signed into law by the President.
Several amendments were made to HR 2267 on Wednesday. Each amendment was handled individually and voted on by the representatives in attendance. Here’s a recap of what was discussed:
Amendment 1 (Congressman Brad Sherman, Calif.): Sites that have intentionally broken Internet gaming laws cannot get a license to conduct business in the United States. This will likely affect larger online poker sites such as PokerStars, Full Tilt Poker and the old Ultimate Bet, all of whom allowed players from the U.S. to play on their site after the UIGEA went into effect. Amendment is taken to a voice vote, where representatives are asked to motion whether they are in favor or against the amendment. Amendment passes by voice vote.
Amendment 2 (Congressman Peter King, New York): Prohibits sports betting, excluding horseracing. King and several other representatives strongly support the notion of keeping sports clean and away from anything that will undermine the integrity of the game. Amendment passes by voice vote.
Amendment 3 (Congresswoman Mary Jo Kilroy, Ohio): Secretary of Treasury has the power to prohibit unsolicited emails and advertisements targeted to minors and problem gamblers. Amendment passes by voice vote.
Amendment 4 (Congressman Spencer Bachus, Alabama, and Congresswoman Michele Bachmann, Minnesota): Forbids offshore sites that have illegally done business in the US, along with people who have been employed by said sites, from getting a license. Bachus aims to include everyone associated with an “illegally-run” online gambling site be banned; Frank disputes the provision, saying that a janitor or restaurant worker employed inside of a brick and mortar casino would not be held responsible for the mishandlings of upper management; the same should hold true for an online company. Bachus withdraws amendment and says he would like to resubmit. Bachus reintroduces amendment later in the day, stipulating that only those who knew they were working at an illegally-run Internet site will be banned from obtaining a license. Amendment is later voted on by roll-call.
Amendment 5 (Congressman Joe Baca, Calif.): Allows Indian tribes to participate in Internet gambling. Frank quickly denies the amendment as it is not germane, or relevant to the subject.
Amendment 6 (Congressman Joe Baca, Calif): Allow states/tribes to opt-in to Internet gambling. Frank emphasizes that the choice to gamble online should be up to the person, not to the state where they reside. Amendment denied by voice vote, but is later voted on by roll-call.
Amendment 7 (Congressman John Campbell, Calif): Includes several provisions: 1.) All facilities of licensees that operate and/or accept wagers be located in the US; 2.) States and tribes must have parallel authority; 3.) Bettors must be at least 21 years of age; 4.) Age and residence of bettors must be verified; 5.) Odds of winning at each game must be posted online, 6.) The identities of legal and illegal gambling sites must be verified by the treasury in order for banks to prohibit certain financial transactions; 7.) Owners must meet licensing requirements; 8.) Sites must provide loss limits for each bettor. Amendment passes by voice vote.
Amendment 8 (Congressman Brad Sherman, Calif.): States are given one full legislative session to opt out, as opposed to the original period of 90 days. Amendment passes by voice vote.
Amendment 9 (Congressman John Campbell, Calif): Internet sites who advertise towards minors will have their license revoked. Amendment passes by voice vote.
Amendment 10 (Congresswoman Melissa Bean, Illinois): Treasury is required to observe Internet sites and accordingly sanction fines and revoke licenses if minors are found gambling. Amendment passes by voice vote.
Amendment 11 (Manager’s amendment — the majority and minority member who managed the debate): Bets are to be made with prepaid cards and debit cards only; bettors will be restricted from using credit cards on Internet gambling sites. In addition, the House Financial Services Committee will have no jurisdiction on tribal rights. Amendment passes by voice vote.
Amendment 12 (Congresswoman Michele Bachmann, Minnesota): Internet sites are forbidden from allowing people who are delinquent on child support from gambling on their site. Sites who don’t obey this rule lose their license. Amendment passes by voice vote.
Amendment 13 (Congressman Gary Peters, Michigan): State and tribal lotteries are exempt from licensing requirements, as long as they are intrastate activities. Currently, these lotteries are already subject to state licensing, and the Federal government should not get involved. Amendment passes by voice vote.
Following the passing of the final amendment of the afternoon, Rep. Bachus called for a roll call vote, which Rep. Frank scheduled for 3:20 p.m. ET. The first roll call vote was on the opt-in amendment by Rep. Baca, which was defeated by a vote of 37-22. The next in line was Bachus’ amendment, which was also voted down, by a vote of 43-22. Finally, HR 2267 came before the committee, and it passed by an overwhelming margin of 41-22.
Stay tuned to Poker News Daily as we continue the follow the fight to regulate online poker in the U.S.
Alfonse D’Amato Speaks Out On Regulating Online Poker
With the regulation of online poker a hot topic on Capitol Hill this week, Poker Players Alliance (PPA) chairman Alfonse D’Amato was eager to voice his opinion in support of poker players in the United States. In his piece titled, On poker, are politicians listening? on politico.com, D’Amato spoke out on subjects such as the taxation of online poker, the government acting on behalf of U.S. banks, and the intentions of our Founding Fathers.
D’Amato opened his editorial by mentioning the popularity of poker and the amount of support it has received following the implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA). Said D’Amato, “Under the liberty and freedom section of the new GOP website America Speaking Out, more Americans voted to legalize Internet poker than weighed in on any other issue. That should come as no surprise. When President-elect Barack Obama solicited ideas on his new website, www.change.gov, legalizing Internet poker was one of the two top issues.”
Poker players around the country have rallied behind the PPA by calling, writing and e-mailing their State Representatives in order to have their rights protected. The PPA has even set up a pre-written letter to send to a person’s corresponding Congressman. In just a few minutes time a letter can be sent and your voice can be heard.
“It takes real passion to get people to take valuable time out of their day to log onto these websites, give up a portion of their privacy and cast their vote for an issue,” stressed D’Amato. “So it is extraordinary that making Internet poker legal consistently ranks as a top issue for the American people.”
A major problem that poker players have faced for the past couple years has been depositing and withdrawing their own money from online poker sites. Though D’Amato and fellow PPA chairman John Pappas have referred to the execution of the UIGEA as a “bump in the road,” players have seen their checks bounce and deposits have become nearly impossible to complete as online poker sites have tried desperately to weave around the forceful hand of the U.S. government.
“The fact that America has not already regulated Internet poker but has actually tried to prohibit it by deputizing U.S. banks to play the morality police is bizarre,” said D’Amato. “Proponents of the law say that it helps deter kids from playing poker in their bedrooms. But there is little evidence to suggest that this law has deterred kids from playing poker.
“In fact, playing Internet poker is still easy to do for just about everybody. Instead of playing in a more regulated industry, the law has created an environment where there is no federal oversight — because there are no U.S. companies to regulate.”
D’Amato, Pappas, and Rep. Barney Frank (House Financial Services Committee chairman) have also emphasized the tax benefits the country will receive from the regulation of online poker. With the country in turmoil over its trillion-dollar budget deficit, regulating and taxing online poker could provide some relief over the years.
Said D’Amato, “By refusing to regulate this industry, the federal government has also decided to refuse to tax it. That means that billions of dollars in potential tax revenue go uncollected. This is just about the only industry I know of that has basically begged to be taxed — only to be ignored by politicians who refuse to listen to the desires of the American people.”
Finally, D’Amato talked about where it all started in this country: liberty and freedom. D’Amato referenced the Founding Fathers in the conclusion of his article, saying, “The freedom to play poker is not one of the rights enumerated in the Bill of Rights. But when the Founding Fathers conceived of a new nation, they never dreamed that someday Congress would dream up a law to ban that particular freedom — especially when such a ban was so clearly against the wishes of the American people.”
The House Financial Services Committee hearing on the markup of HR 2267, a bill to provide for the licensing of Internet gambling activities by the Secretary of the Treasury, was originally scheduled for Tuesday but was postponed until Wednesday. It’s not too late to voice your opinion! Visit www.standupforpoker.com/ to send a letter to your State Representative.
Barney Frank’s Internet Gambling Legislation Markup
Poker News in Brief: July 19-25, 2010
There was a hearing for Barney Frank's new online poker bill, two big live tournaments began, tons of online action and of course everyone got to know the 2010 WSOP November Nine a bit better.
There are always lesser-known stories that threaten to fall through the cracks, however. Fortunately PokerListings has compiled a list of them in our ongoing Poker News in Brief feature.
This week we'll take a look at Tony G winning the Poker Lounge, PokerStars giving away a Gallardo, Full Tilt renewing a popular cash game show and more.
Tony G Takes Poker Lounge
Tony G won the new six-player winner-take-all Poker Lounge for $120,000 in Cardiff this week.
The PartyPoker pro had his work cut out for him as he had to outlast Mike "The Mouth" Matusow, Jennifer Harman, Chris Ferguson, James Dempsey and an online qualifier.
Tony G would eventually take a slight chip lead into heads-up play against Mike "The Mouth" Matusow.
In the final hand Tony G got it all-in with A-9 against Matusow's A-5 and ended up winning the hand.
The show, which is similar to Poker After Dark, is set to be broadcast in Britain later this year.
Full Tilt Renews Million Dollar Cash Game
Popular European poker show the Million Dollar Cash Game should be around for at least three more years as Full Tilt Poker has renewed its sponsorship for that length.
In years past Gus Hansen, Patrik Antonius, Chris Ferguson, Allen Cunningham, Tony G and Mike Matusow have all been regulars on the program.
Last year's show was perhaps the most memorable in the show's history as Tom Dwan raked a $1.1 million pot from Phil Ivey. It was the biggest pot ever won on television.
This year's Million Dollar Cash Game will take place at an exclusive venue in London on Sept. 8-9.
Free Lamborghini on PokerStars
PokerStars players could potentially drive away in a new Lamborghini Gallardo thanks to a new promotion.
The online room announced this week that it will run a series of daily freerolls where players can qualify for nine weekly finals, each with $100,000 added to the prizepool.
The top 2,000 players from each weekly final will progress to the grand final where players will compete for a $250,000 and a Gallardo.
The promo will run July 25 until Sept. 25 on PokerStars with the grand final scheduled for Oct. 3.
Everest Doles out $111k to Qualifiers
Players who qualified for the WSOP on Everest Poker got a nice bonus this week.
As part of its $1 Million Dollar Match program, Everest Poker awarded $111,789 to lucky qualifiers.
The promotion saw Everest Poker match whatever amount its qualifiers made in the WSOP Main Event and Event 54 up to $1 million dollars.
In total 14 players made the money in the Main Event and Event 54 to earn $111,789 in cashes.
It helped all the qualifiers that Live the Dream member Daan Slutter went very deep in the Main Event, eventually finishing 128th for $57,102.
The cash will be split between all 112 Everest Poker WSOP qualifiers this year.
Holyfield to Hit Poker in the Park
Boxing great Evander Holyfield will make an appearance in the 2010 Poker in the Park in London.
Holyfield, who is sponsored by Real Deal Poker, will be playing a series of "Beat the Champ" events where boxing and poker fans can play him heads-up.
A free festival, Poker in the Park is scheduled to take place Sept. 2-3 and will feature a variety of poker related activities including free tournaments, lectures, concerts and the chance to meet notable players and celebrities.
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Markup Scheduled for Frank’s Internet Gambling Bill
Tags: Barney Frank
Markup Hearing of Internet Gambling Bill Scheduled for July 27th
Next Tuesday, July 27th, the House Financial Services Committee will mark up HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The announcement of the hearing comes just one day following debate of the bill in the Committee led by Congressman Barney Frank (D-MA).
The Safe and Secure Internet Gambling Initiative (SSIGI) broke the news shortly after dinnertime on Thursday. Organization spokesperson Michael Waxman told Poker News Daily that he was pleased to see such quick movement through the powerful House Financial Services Committee: “Chairman Frank is clearly moving to get his bill advanced before Congress leaves town for their summer recess. Most importantly, the markup shows a commitment by Chairman Frank to move forward and his colleagues to address this issue.”
Tuesday’s hearing is on the docket for 10:00am ET and features the markup of six bills including HR 2267. The other five pieces of legislation to be discussed include HR 5814 (Public Housing Reinvestment and Tenant Protection Act), HR 4868 (Housing Preservation and Tenant Protection Act), HR 3421 (Medical Debt Relief Act), HR 4790 (Shareholder Protection Act), and HR 5823 (United States Covered Bond Act). This is the first set of markups to be placed on the Committee’s agenda since May.
Congressman John Campbell (R-CA) announced during yesterday’s House Financial Services Committee hearing that he would propose an amendment to HR 2267 that would introduce technologies to curb illicit use of internet gambling sites. In addition, Campbell also planned to introduce a loss limit, although the size and scope of either add-on is not yet known.
Campbell closed Wednesday’s proceedings by asserting, “Alcohol is sold online today widely and there are technologies out there that keep minors from buying that alcohol online.” Campbell is not one of the 69 co-sponsors of HR 2267, which Frank brought to life in May 2009. The group of supporters includes both Democratic and Republican lawmakers.
Cautiously optimistic about a markup being put on the schedule was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who told Poker News Daily prior to Thursday’s announcement, “The Poker Players Alliance (PPA) and other groups I’m sure are not going to be satisfied until a markup happens. Otherwise, it’s just a quarterly public hearing. I’m hopeful that the markup will happen, but we’ll just have to wait and see.”
In a press release distributed on Thursday, Waxman reminded media and lawmakers alike what’s at stake if HR 2267 were to be passed into law: “The passage of this legislation would be a win-win, as it will protect consumers, create an estimated 32,000 new jobs over five years, and provide federal and state governments with as much as $72 billion in new revenues over ten years.” The revenue and job numbers were questioned during Wednesday’s hearing, which featured testimony from UB.com’s Annie Duke, who spoke on behalf of the PPA.
A webcast of Tuesday’s hearing will be available on the official website of the House Financial Services Committee starting at 10:00am ET. Stay tuned to Poker News Daily for the latest from Capitol Hill and beyond.
Internet Gambling Industry Evaluates Financial Services Committee Hearing
On Wednesday, the merits of HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, were debated in the House Financial Services Committee. Now that the banter has ceased, several industry organizations have had a chance to weigh in, including the Poker Players Alliance (PPA) and Interactive Media Entertainment and Gaming Association (iMEGA).
UB.com pro Annie Duke represented the PPA as a witness at the hearing. Her testimony focused on increasing attendance numbers at the World Series of Poker manifesting the continued growth of online poker and the importance of preserving personal freedoms. PPA Executive Director John Pappas commented in a press release on Wednesday, “Our opponents can’t offer a consistent argument on this issue. Former U.S. Attorney Michael Fagan wants to go as far as banning internet gambling outright and Tom Malkasian of the Commerce Casino supports licensing and regulation – just not a competitive marketplace. It seems that our opponents don’t even agree with each other here.”
About halfway through the hearing, Frank observed, “The opposition to this bill consists of people who think [internet gambling] is terrible and people who think it’s so wonderful that they don’t want anyone to compete with them in it.” Pappas concluded his comments on Wednesday’s Financial Services Committee hearing by noting, “The PPA is ready and eager to work with policymakers to continue moving this legislation through the process.”
Commending Duke’s appearance at the hearing was iMEGA Chairman Joe Brennan, who told Poker News Daily on Thursday morning, “I’m glad to see that Annie Duke spoke up on behalf of the PPA, but the hearing ended with no real commitment to go forward. At this point, as hard as the PPA has worked, they deserve more than just a hearing every three or four months. They deserve a committee vote. Now that financial reform has passed, we’ll see if Barney Frank (D-MA) can get a vote on his own bill.”
Frank, who chairs the Financial Services Committee, may have a new Ranking Member in the next Congress, as a Politico article on Thursday outlined a possible Republican challenge to Spencer Bachus (R-AL). Frank introduced HR 2267 in May 2009 and the measure has picked up 69 co-sponsors on both sides of the aisle. Among its most vocal proponents on Wednesday was John Campbell (R-CA), who expressed a desire to add an amendment to HR 2267 containing an increased use of technology and a loss limit. What the latter’s impact would be on high-stakes cash games and tournaments remains to be seen.
The Safe and Secure Internet Gambling Initiative (SSIGI), which was called out by Bachus on Wednesday as “corporate interests protecting the bottom line,” also weighed in on the hearing. SSIGI spokesperson Michael Waxman commented in a press release, “Lawmakers who have not yet taken a position on this issue should realize that their constituents are likely among the millions of Americans who wager online despite attempts to prohibit the activity. Members would best serve their constituents by accurately representing their interests and supporting Chairman Frank’s bill.”
The SSIGI release reminded lawmakers that a licensed internet gambling industry stands to pump as much as $42 billion in revenue into the U.S. economy over 10 years. In addition, up to 32,000 jobs could be created in the first five years according to an analysis by H2 Gambling Capital. The tax companion bill to HR 2267 is HR 4976, introduced by Jim McDermott (D-WA) and discussed in May in the House Ways and Means Committee. In addition to raising funds for states and tribes, HR 4976 institutes a 2% tax on deposits.
Stay tuned to Poker News Daily for the latest poker legislation headlines.
Markup of HR 2267 to Occur Week of July 26th
A lengthy hearing in the House Financial Services Committee on Wednesday featured discussion of HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. After a fairly standard hearing by internet gambling standards, Congressman John Campbell (R-CA) dropped a bombshell, alluding to a markup hearing of the bill next week. As of the time of writing, no such hearing has been announced.
Rescheduled to 2:00pm ET, the proceedings in Room 2128 of the Rayburn House Office Building did not commence until 2:30pm ET. Then, Ranking Member Spencer Bachus (R-AL) gave his take on the hours to come: “The timing of today’s hearing strikes some of us as ironic, to say the least. After all of the talk about shutting down the casinos on Wall Street, it makes no sense why we would open casinos on every… computer in America.” Earlier in the day, President Barack Obama signed a major financial overhaul measure into law.
Campbell, despite being a Republican, seemed to be HR 2267 author and Committee Chairman Barney Frank’s (D-MA) right-hand man. Campbell told the assembled committee, “I don’t gamble. I don’t partake in it, but freedom is not about legislating what I like to do. Freedom is about allowing Americans to do what they want to do.” In her testimony, Poker News Daily Guest Columnist Annie Duke, who represented the Poker Players Alliance (PPA), noted that 70 million Americans play poker.
Michael Fagan, Law Enforcement and Anti-Terrorism Consultant, spoke out ardently against HR 2267 and called into question a stat that Duke contributed saying that 1% of gamblers could be classified as problem gamblers. Fagan noted that offshore sites are subject to U.S. excise taxes now, but don’t pay them. He summed up his testimony by concluding, “The costs of regulating and taxing don’t outweigh the negatives.”
Perhaps amenable to a bill like HR 2267 was soon-to-be-Chief Lynn Malerba of the Mohegan Tribe, who told the panel, “Our tribe has a philosophy known as the Mohegan Way, which stresses cooperation rather than conflict.” Malerba noted that Frank had worked hand-in-hand with Indian tribes to create the components of HR 2267. She added that hundreds of thousands of new jobs have been created from tribal gaming and that the Mohegan Tribe was still studying its optimal strategy.
Tom Malkasian, Vice Chairman and Director of Strategic Planning for the Commerce Casino, told the House Financial Services Committee, “We believe limited forms of online poker can provide safe play for our patrons, but only if the legislation is done the right way.” He called HR 2267 “fundamentally flawed” and “based on false revenue assumptions.” Malkasian claimed that HR 2267 rewards foreign operators purportedly operating illegally in the United States now. Once the market opens up, they would have a leg up on their competition in terms of a learning curve if they were granted a license.
The last witness was Ed Williams, President and Chief Executive Officer for the Discovery Federal Credit Union, who spoke on behalf of the Credit Union National Association. Williams told the Committee that the Unlawful Internet Gambling Enforcement Act (UIGEA) “represents an inappropriate and unreasonable compliance burden. It does not provide us with the definition of unlawful internet gambling.”
Congressman Joe Baca (D-CA) lashed out against his colleague’s bill, saying, “The only thing this bill will do is create problems for California and our economy. It threatens to close 22,000 jobs in California.” Baca also expressed concern that a direct federal tax on Indian tribes would threaten their sovereignty, at one point raising his voice and pointing at Malerba before reiterating his concerns about job losses.
One new point that surfaced during the hearing was whether sites like PokerStars, Bodog, and UB.com, which have continued to operate in the United States since the passage of the UIGEA in 2006, should be eligible to receive licenses under HR 2267. Malerba responded, “I think that all sites should be located in the USA. In terms of what has happened in the past with the internet gambling operators, I’m sure that there are internet gambling operators offshore that are legitimate and have been licensed by legitimate governments.
Then, it was Campbell’s turn to shine. At the tail end of a hearing that was delayed by 30 minutes to start and had a 45 minute respite in the middle, Campbell told the audience in a largely empty conference room that he’ll offer an amendment in a markup hearing next week that will add use of sophisticated technologies to HR 2267. He’ll also propose a loss limit: “Most brick and mortar casinos don’t have those things.”
The hearing came to a close around 5:00pm ET. PPA Executive Director John Pappas told Poker News Daily that the markup hearing directive would come from Frank’s office.
Tags: aced, Annie Duke, Barney Frank, bodog, gamble, legal, Online Poker, poker player, Poker Players Alliance, pokerstars, usa
Financial Services Committee Hearing Features Annie Duke
Wednesday’s hearing on internet gambling in the House Financial Services Committee has been pushed back one hour to 2:00pm ET. Also announced on Tuesday were the five witnesses that will present testimony in front of the Barney Frank-led group.
Included in the panel is Poker News Daily Guest Columnist, UB.com sponsored pro, and reigning National Heads-Up Poker Championship winner Annie Duke. The “Celebrity Apprentice” runner-up’s testimony was published on the House Financial Services Committee’s website earlier today and reads in part, “At its most basic level, the issue before this committee is personal freedom – the right of individual Americans to do what they want in the privacy of their homes without the intrusion of the government.”
Duke will speak on behalf of the Poker Players Alliance (PPA), the 1.2 million member strong lobbying group for the industry. After providing several personal freedom arguments, Duke will share a new vantage point on HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act: “To be clear, HR 2267 is not a bill that expands internet gambling in America. It simply provides the appropriate government safeguards to an industry that currently exists and continues to grow.”
Ranking Member Spencer Bachus and others have voiced the concern that legalizing internet gambling in the United States essentially equates to placing a 24-hour casino in every person’s bedroom. In response, Duke will argue in her testimony on Wednesday, “Under a U.S.-regulated system, an authorized licensee would be required to have technologies in place to prevent minors from playing.”
Joining Duke to speak in front of the 71-member Committee is Ed Williams, President and Chief Executive Officer of the Discovery Federal Credit Union on behalf of the Credit Union National Association. Representing the Commerce Casino, which is entrenched in a battle of its own over legalized intrastate online poker in California, will be Tom Malkasian, its Vice Chairman and Director of Strategic Planning.
Rounding out the five-witness panel are the Mohegan Tribe’s Lynn Malerba and Law Enforcement and Anti-Terrorism Consultant Michael Fagan. Once again, no representatives from the United States Treasury or Federal Reserve will be present. The two government agencies were responsible for delaying mandatory compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) for six months in late November. In a December House Financial Services Committee hearing, Bachus called for Treasury and Federal Reserve officials to be present at a follow-up hearing.
No markup of HR 2267 is scheduled for tomorrow. Poker fans can catch the proceedings via a webcast on the official website of the House Financial Services Committee and the event in Room 2128 of the Rayburn House Office Building will likely run one to two hours.
Internet gambling is the only topic on the docket for the Committee on Wednesday. As a follow-up, monetary policy and the state of the economy will take center stage on Thursday. Congress was out from July 5th to 9th for the Fourth of July and is scheduled to recess once again from August 9th to September 10th. Its target adjournment date is October 8th, one month ahead of November’s general elections in the United States.
If HR 2267 is not acted upon by the end of the year, it will be deemed “dead” and must be reintroduced in the new Congress, which will convene in January. The measure was introduced in May 2009 and has attracted 69 co-sponsors, both Democrats and Republicans. Its tax companion bill, Jim McDermott’s HR 4976, was discussed in the House Ways and Means Committee two months ago, but was not acted upon.
House Financial Services Committee Meeting on Internet Gambling Wednesday
Tags: Barney Frank
Internet Gambling Hearing Scheduled for July 21st in Financial Services Committee
Next Wednesday, July 21st, the House Financial Services Committee will hold a hearing succinctly entitled, “HR 2267, Internet Gambling Regulation, Consumer Protection, and Enforcement Act.” The bill, introduced by Committee Chairman Barney Frank (D-MA), establishes a comprehensive licensing and regulatory framework for the internet gambling industry in the United States.
Unlike past hearings, which have had a 10:00am ET start, Wednesday’s hearing will kick off after lunch at 1:00pm ET in Room 2128 of the Rayburn House Office Building. No list of witnesses has been released and, according to a House Financial Services Committee spokesperson, no markup of HR 2267 will occur. The bill has attracted 69 co-sponsors, both Republicans and Democrats, after being introduced in May 2009. However, only a half-dozen lawmakers have signed on in 2010.
Looking forward to the July 21st internet gambling hearing was Poker Players Alliance (PPA) Executive Director John Pappas, who told Poker News Daily on Wednesday afternoon, “We appreciate Chairman Frank calling another hearing on HR 2267. We hope this is the final step toward an eventual vote in his Committee on this legislation before the August recess. The PPA and the poker community stand ready to secure its passage.” The PPA has been busy registering members at the 2010 World Series of Poker (WSOP), whose Main Event is playing out at the Rio All-Suite Hotel and Casino in Las Vegas.
Also eyeing next week’s Capitol Hill debate on internet gambling, which will be the first in the House Financial Services Committee since last December, is Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan. “Hearings are nice; they keep the ball in the air,” Brennan told Poker News Daily upon hearing the news. “What’s needed are votes: committee votes, floor votes. The i-gaming lobby has been working too hard for too long. It deserves more than a hearing. But, we’ll wait and see who will appear as witnesses. I’d like to see John Pappas finally get the opportunity to appear before the House Financial Services Committee and make the case for the players.”
The December 3rd hearing in the Committee featured testimony from Morongo Band of Mission Indians Tribal Chairman Robert Martin, Wired Safety Executive Director Parry Aftab, John F. Kennedy School of Government Professor Malcolm Sparrow, National Council on Problem Gambling Executive Director Keith Whyte, the Dowling Advisory Group’s Jim Dowling, Independent Community Bankers of America’s Samuel Vallandingham, and YouBet.com Executive Chairman Mike Brodsky.
Curiously absent from last December’s hearing were officials from the U.S. Treasury and Federal Reserve, who had, just days prior, issued a six-month delay in the compliance of the Unlawful Internet Gambling Enforcement Act (UIGEA). House Financial Services Committee Ranking Member Spencer Bachus (R-AL) called for a hearing with officials from the two government agencies, which will likely be represented next week.
Credit card companies, banks, and other financial institutions had until June 1st to comply with the regulations of the UIGEA, a deadline that has had seemingly little effect on the industry. Nevertheless, the PPA, iMEGA, and other organizations have continued to push for regulated internet gaming at both the federal and state levels.
Stay tuned to Poker News Daily for a full witness list for Wednesday’s hearing, which will likely be published on Monday.
Markup of Barney Frank Internet Gambling Bill Expected Soon
At the 2010 World Series of Poker (WSOP) in Las Vegas, officials from the Poker Players Alliance (PPA) told Poker News Daily that the major pro-internet gambling bill in Congress may be marked up this week. However, no hearing appears on the schedule of the House Financial Services Committee.
The PPA had originally expected HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, to be marked up the week of July 12th. However, the only meeting that appears on the schedule of the House Financial Services Committee is in Canfield, Ohio on Tuesday morning. There, the Subcommittee on Oversight and Investigations will hold a hearing entitled, “After the Financial Crisis: Ongoing Challenges Facing Delphi Retirees.”
Congressman Barney Frank (D-MA), who chairs the House Financial Services Committee, also introduced HR 2267 in May 2009. The bill is up to 69 co-sponsors on both sides of the aisle, but has generated just six new endorsers since 2010 began.
The PPA is up to 1.2 million members, many of whom helped raise $27,000 as part of the organization’s July 1st Money Bomb. PPA Executive Director John Pappas told Poker News Daily that the average donation was a little over $20.
The PPA will use its $27,000 in newfound cash to fund a series of ads in publications like Roll Call and Politico supporting the markup efforts. The original fundraising target of the July 1st campaign was $25,000, meaning that the PPA exceeded its expectations. Preset donation amounts ranging between $5 and $500 are still available on the PPA’s website, where funds continue to be accepted.
The July 1st date marked exactly one month from the date of mandatory industry compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). After the bill was originally passed in late 2006, its regulations had not yet been fully enforced. Now, credit cards, banks, and other financial institutions must fall into line with the four year old bill. In the background of the mandatory compliance deadline was arguably the most successful WSOP in history, including the second largest Main Event ever at 7,319 entrants.
In a video posted on the official website of the PPA conducted by ESPN’s Andrew Feldman, Pappas described the lay of the land following June 1st: “We hear from players all of the time if there are disruptions in deposits or payouts or anything like that and we’re not hearing any of those issues. It’s an eerie silence and we’re wondering what is going to happen, if another shoe is going to fall.”
Frank had alluded to a vote on HR 2267 during a hearing in the House Ways and Means Committee in May. Pappas told Poker News Daily and Feldman that a vote in committee could happen in the “next couple of weeks.” The House Financial Services Committee last tackled the internet gambling issue in December. During the proceedings, Ranking Member Congressman Spencer Bachus (R-AL) asked why officials from the U.S. Treasury and Federal Reserve were not in attendance. Consequently, those two entities are expected to take center stage in the yet-to-be-scheduled markup hearing.
The PPA is also seeking to expand its Board of Directors, perhaps by adding New Hampshire State Director Patrick Fleming. The organization has created a nominating committee for the Board that consists of the current Board members and several State Directors. A total of three additional personalities may join the PPA’s Board, which currently includes Pappas, Alfonse D’Amato, Chris Ferguson, Linda Johnson, Howard Lederer, Rich Muny, and Greg Raymer.
Visit the official website of the PPA for full details.