Poker News

Barney Frank Internet Gambling Bill Delayed Until Week of May 4th

According to an article released by Reuters on Tuesday, legislation to alter the landscape of the internet gambling industry in the United States will not be introduced by Congressman Barney Frank (D-MA) until next week.

Frank had originally stated that a bill favorable to the industry would be introduced in March. Then, an interview with The Hill revealed that it would not be seen until after Congress’ Easter recess. Now, legislation to overturn or clarify the Unlawful Internet Gambling Enforcement Act (UIGEA) will likely become a reality during the week of May 4th. A source close to Poker News Daily explained that pressure from “the guys writing checks” to release a bill may be taking precedence. In order to see time on the floor of the House of Representatives, past bills have undergone mark-ups and received amendments. Therefore, the bill Frank ultimately introduces may not be the final legislation enacted.

Frank told Reuters, "We'll be introducing it next week and I plan to move on it.” His previous attempt at creating a full licensing and regulatory framework for the industry came in the form of the Internet Gambling Regulation and Enforcement Act, which was introduced in 2007 and numbered HR 2046. The bill, along with a companion tax bill that was introduced by Congressman Jim McDermott (D-WA), would have generated up to $52 billion in revenue over a 10 year period for the U.S. Government, according to a study conducted by PricewaterhouseCoopers. On the reason for the two month delay, Reuters explained, “Frank said his Committee has been busy with other measures addressing the credit crisis and proposals to reform financial regulation.”

Frank made two attempts to clarify the UIGEA during the 110th Congress. Together with former Republican Presidential candidate Ron Paul (R-TX), Frank sponsored HR 5767, the first version of the Payments System Protection Act. However, amid pushback from Congressman Spencher Bachus (R-AL) as well as the failure of an amendment by Congressman Peter King (R-NY), HR 5767 failed to make it out of the House Financial Services Committee. In a June vote, King’s amendment was trumped by virtue of a 32-32 tie vote. An oral vote on HR 5767 saw the “Nays” outnumber the “Yays.”

In September, Frank introduced HR 6870, the second installment of the Payments System Protection Act. The bill passed out of Committee by a 30-19 vote, but then fell by the wayside as the global economy sputtered shortly thereafter. HR 6870 called for the U.S. Treasury and Federal Reserve to collaborate with the Attorney General’s office in order to determine what is legal and illegal under the UIGEA. The bill would have also suspended the UIGEA except for its directives related to online sports betting.

Despite being allowed to opt out of HR 6870, professional sports leagues such as the NFL came out against it. In March, the New York City-based NFL hired Jeff Miller to be its first full-time in-house lobbyist. His is charged with monitoring events on Capitol Hill and has pledged to support enforcement of the UIGEA. Miller told the Associated Press last month, “We want to maintain the integrity of the game, and gambling threatens that." The NFL completed its annual Draft over the weekend, with University of Georgia standout Matthew Stafford being chosen first overall by the Detroit Lions. Stafford received a six-year contract with over $40 million guaranteed.

Although a final copy of the proposed legislation has not been publicly released, Reuters claimed it “would overturn a law imposed during the Bush administration that has hurt U.S. trade ties with the European Union. Frank said the bill was being drafted this week.” Late last month, investigators from the European Commission found the United States to be in violation of its World Trade Organization (WTO) obligations due to the country’s stance on internet gambling. The Commission’s findings came as a result of a complaint filed by the Remote Gambling Association.

A call placed to Frank’s press secretary was not returned as of press time. Stay tuned to Poker News Daily for the latest news from Capitol Hill.

Poker Players Alliance to Spend $3 Million for Lobbying Efforts

In a recent article by the Associated Press, it was revealed that the Poker Players Alliance (PPA), the major lobbying force for the poker industry, plans to spend $3 million for lobbying efforts on Capitol Hill during the current Congressional session.

The online poker industry is on the cusp of seeing new internet gambling legislation introduced by Congressman Barney Frank (D-MA). It will need to sway a Congress that is engulfed with a struggling economy and ongoing war in Iraq to address the need for internet gambling or online poker legislation. The PPA’s method will be to lay out $3 million during the 111th Congress, which began in January and runs through the end of 2010. According to the Associated Press, The group gets its money from the “Interactive Gaming Council (IGC), a Vancouver, British Columbia-based trade association for online casinos, as well as from its poker player members.”

The PPA has over one million members worldwide, a number that it reached last year, and offers premium versions for a one-time fee of $20. Many of its constituents, however, are of the free variety. Benefits of upgrading to a premium membership include access to the PPA’s extensive Litigation Network, which puts poker players in need of legal counsel in touch with local pre-screened lawyers, as well as a discount program that touts potential savings of over $2,000 per year. Other benefits of the $20 membership include a PPA card protector and window decal, discounts on PPA merchandise, and the ability to donate to the organization’s Poker Political Action Committee (PAC).

The National Football League (NFL) has been among the advocates of continuing the enforcement of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed into law during the final minutes of the 2006 Congressional session. Last month, it was revealed that the NFL had hired lobbyist Jeff Miller, who will serve as its first in-house counsel and keep the pulse of Capitol Hill. In an interview with the Associated Press, when asked whether he would continue to support upholding the UIGEA and Wire Act, Miller responded, "We want to maintain the integrity of the game, and gambling threatens that."

The UIGEA does not clarify what is legal and illegal under it. Instead, the doctrine defers to existing federal, state, and tribal laws and charges the financial services industry with its enforcement. The Associated Press article notes that half of the $16 billion internet gambling industry is “fueled by bettors in the United States.” The entire industry underwent a makeover as a result of the 2006 law, which sent the largest online poker site at the time, PartyPoker, packing from the market. In addition, payment processors such as Neteller and Citadel Commerce fled. A subsidiary of a publicly traded company, PartyPoker is now the fourth largest site or network worldwide according to PokerScout.com. It has also rebounded to become the second largest that does not accept players from the United States.

NFL spokesperson Brian McCarthy told the Associated Press, “We understand that illegal gambling currently occurs, but there is little we can do about that. However, we can exercise our right to oppose Internet betting on our games. Gambling on our games – online or offline – threatens the integrity of our games and all the values they represent.” A recent study by U.S.-based PricewaterhouseCoopers noted that up to $52 billion could be raised by taxing and regulating the internet gambling industry over a ten year period. However, that figure relied heavily on professional sports leagues opening up betting on their games, a concept the NFL appears to be ardently opposed to.

Frank told the Associated Press in a previous interview that he plans to introduce internet gambling legislation before the end of April. Congress was on a recess for the Easter holiday last week. The Chairman of the powerful House Financial Services Committee had originally intended to submit a bill in March, but it was ultimately postponed due to the ongoing economic meltdown. What form the legislation will take is also not yet known.

Stay tuned to Poker News Daily for the latest from Capitol Hill.

PPA Chairman D’Amato Sees Bipartisan Support for Internet Gaming Bill

In a recent letter authored by Poker Players Alliance (PPA) Chairman Alfonse D’Amato to The Hill, the former three-term Senator from New York forecasted bipartisan support for Congressman Barney Frank’s (D-MA) upcoming internet gambling legislation.

In a recent interview with The Hill, Frank alluded to introducing legislation favorable to internet gambling next week after Congress returns from its Easter recess. During the break, the PPA, the main lobbying organization for the poker industry, has gone on the offensive, headlined by D’Amato’s recent contribution to The Hill. The PPA surpassed the one million member mark last year in part due to the visibility and involvement of the former high-profile Senator.

D’Amato claims that both Democrats and Republicans have reason to disapprove of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was attached to the SAFE Port Act and passed during the waning moments of the 2006 Congressional session. He noted in his letter to The Hill, “It does nothing to prevent children and problem gamblers from playing online; it overly burdens the banks, making them, not the federal government, policemen of the internet; it costs the taxpayers billions in unearned revenue, not to mention the loss of capital and jobs when these companies are forced to move out of the U.S.; and it’s simply unenforceable.” The UIGEA was not debated in the Senate; instead, the SAFE Port Act was passed by unanimous consent.

Frank was originally slated to introduce internet gambling legislation in March. However, a faltering economy has delayed the announcement of a bill that may outline a complete licensing and regulatory framework for the industry. The previous version was HR 2046, the Internet Gambling Regulation and Enforcement Act. It was introduced in 2007, but was not enacted into law. According to D’Amato, “Both conservatives and liberals alike know that UIGEA was simply a bad bill turned into worse policy, and it must be redone in order to put a more effective system in place.”

Frank’s two previous attempts to clarify the UIGEA both came with bipartisan support. The Massachusetts Congressman and former Republican Presidential Candidate Ron Paul sponsored HR 5767, the first version of the Payments System Protection Act. The bill was struck down in the House Financial Services Committee, of which Frank is the Chairman, last June. An amendment introduced by Congressman Peter King (R-NY) that called for a list to be developed of what was illegal and legal under the UIGEA failed by virtue of a 32-32 tie vote. The bill itself was then put to an oral vote, where the “Nays” outweighed the “Yays.”

HR 6870 marked the second version of the Payments System Protection Act. It was passed by a 30-19 vote in Committee last September. King once again spoke on behalf of the bill in its mark-up hearing, as did Congressman William Lacy Clay (D-MO). King was its lone co-sponsor, but despite bipartisan support, HR 6870 did not see time on the House floor due to the then-emerging financial crisis. A study recently released by PricewaterhouseCoopers noted that up to $52 billion could be generated by regulating and taxing the internet gambling industry over a 10 year period, although that figure relies heavily on the involvement of professional sports leagues.

The PPA held fundraisers at both the Democratic and Republican National Conventions prior to the general elections in the United States last year. In addition, the organization hosted a booth at the Conservative Political Action Conference in February. D’Amato concluded his call for bipartisan legislative support saying, “Now is the time to do what’s right for all interested parties, not based on party politics. That means protecting internet freedom and the public interest through taxation, licensing, and regulation - not prohibition.”

Former PartyGaming CEO Hired By Harrah’s

On Sunday, the London Times sent shockwaves through the land based casino industry as well as the internet gaming world with a small article regarding the recent actions of one of the largest casino operations in the world and a former online gaming CEO.

It was announced in the Sunday Times Online that Harrah’s Entertainment – responsible for much of the casino action in not only Las Vegas but the United States as a whole and the owner of the World Series of Poker – and former PartyGaming PLC CEO Mitch Garber have entered into an agreement for Garber to join the organization. What isn’t known is what capacity Garber will have within Harrah’s or what effects it will have on the World Series itself.

Garber, who resigned as the CEO of PartyGaming in early 2008, is thought to be taking a leading role in a reorganization of Harrah’s online operations into a stand alone company that will also encompass the WSOP. After several recent developments in the online gaming world, it is believed that Harrah’s is envisioning that the legalization and regulation in the United States will happen soon and wants a qualified leader to be able to run the resulting operation. With Garber, Harrah’s has landed such a leader.

Garber led PartyGaming through much of its tumultuous last few years after the passage of the Unlawful Internet Gaming Enforcement Act (UIGEA) and the resulting move of PartyGaming to pull out of the American market. While with PartyGaming he focused on international expansion through product diversification and a series of mergers and acquisitions. These efforts helped PartyGaming to absorb the losses of the American market with little effect on PartyGaming’s bottom line.

There are different theories as to if, and/or when the legislative mood regarding online gaming in the United States will be changing. In a recent interview with The Hill, Massachusetts congressman Barney Frank, the chairman of the powerful House Financial Services Committee, stated that he plans to introduce internet gambling legislation after the Easter recess. The Hill noted that the week of April 20th is a likely time frame for the bill’s introduction and that it would create a complete licensing and regulatory framework for the internet gambling industry.

This line of thought is tempered by the current economic and political climate in the United States, though. With the ongoing financial crisis affecting not only the U. S. economy but the situations of most nations worldwide, many believe that the legalization and regulation of online poker and gaming is far down the list of priorities of the U. S. Congress and the Obama Administration. Although the taxation dollars from the online gaming industry - which garners an estimated $12 billion yearly - would be helpful to the American government, other more lucrative financial moves are expected to be implemented first.

Gary Loveman, CEO of Harrah's Entertainment, has said online poker's legalization is a strong possibility in the United States and recent activities regarding online poker operators have demonstrated that the winds may be changing. In December, former PartyGaming founder Anurag Dikshit pled guilty to violations of the 1961 Wire Act and paid a $300 million fine. Just last week, Garber’s former company PartyGaming also settled their grievances with the U. S. Department of Justice, agreeing to a non-prosecution arrangement and payment of a $105 million fine over the next three years.

With the hiring of Garber to run the online operations of a newly created branch of Harrah’s and – if online poker is a part of that operation – the WSOP, it does appear that Harrah’s is preparing for the day when online poker and gaming will be legal in the United States. Whenever that day may be.

Barney Frank to Introduce Internet Gambling Legislation after April 20th

In a recent interview with The Hill, Congressman Barney Frank (D-MA) stated that he plans to introduce internet gambling legislation after the Easter recess. The Hill noted that the week of April 20th is a likely time frame.

Frank’s bill, which may create a complete licensing and regulatory framework for the internet gambling industry, will not be a rider to critical legislation, according to The Hill, which claimed, “The main proponent of a bill to regulate Internet gambling will introduce his legislation as a standalone bill and will not seek to add it to must-pass legislation.” Frank told the Washington, D.C. publication, “I want to do this with hearings, discussions, and votes.” The Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in the waning moments of the 2006 Congressional session. It was not discussed in the Senate and instead approved by unanimous consent and attached to the SAFE Port Act.

Frank had originally indicated that he would introduce internet gambling legislation in March. However, an ongoing economic meltdown has hindered other bills from being introduced and addressed. Frank is the Chairman of the powerful House Financial Services Committee, whose industry members like banks and credit card companies have been ravaged by the struggles on Wall Street and around the world. Consequently, the timeline for the introduction of a standalone internet gambling bill has been delayed. Frank told The Hill, “After the break, definitely in April.”

Frank has long been a proponent of internet gambling on Capitol Hill. He was the author of HR 2046, the Internet Gambling Regulation and Enforcement Act, which was introduced in April of 2007, but was not acted upon and now must be reintroduced for consideration. The bill attracted 48 co-sponsors. Last September, the House Financial Services Committee approved HR 6870 by a 30-19 vote, the second version of the Payments System Protection Act, which would have clarified what was legal and illegal under the UIGEA. However, the collapse of the global economy occurred shortly thereafter and the bill was placed on the backburner.

Although a final text of Frank’s new legislation has yet to be released, The Hill speculates on what it may entail: “Frank’s bill would remove the ban on Internet gambling, which Republicans fought hard to institute after heavy lobbying from conservative Christian groups when they controlled Capitol Hill. His legislation would regulate the practice as well as tax it, providing new revenues for the federal government.” A recent study released by PricewaterhouseCoopers revealed that taxing and regulating the internet gambling industry may yield up to $52 billion in revenue for the U.S. Government over a 10 year period. The figure is ultimately contingent on whether professional sports leagues choose to allow betting on games.

Some have argued that a bill that legalizes only online poker would stand a better chance of being passed than would a multi-faceted approach like Frank’s. In July of 2007, Congressman Robert Wexler (D-FL) introduced HR 2610, the Skill Game Protection Act, which would have exempted poker, bridge, chess, mah jong, and other player versus player games from the UIGEA and Wire Act. The bill created an important distinction between online casinos, where the action is primarily player versus the house, and online poker, where contestants battle against each other. Like HR 2046, HR 2610 was not acted upon during the previous Congressional session and must now be reintroduced.

The regulations of the UIGEA went into effect on January 19th as a “midnight rule” by the outgoing Bush Administration. Banks and other financial institutions must come into full compliance with the law by December 1st. In the meantime, over-blocking of transactions by Visa and MasterCard has led to complications for state lotteries in North Dakota and New Hampshire, where customers attempting to purchase tickets online are being declined.

Stay tuned to Poker News Daily for the latest legislative news from Washington, D.C. and around the world.

Barney Frank to Introduce Internet Gambling Legislation after April 20th

In a recent interview with The Hill, Congressman Barney Frank (D-MA) stated that he plans to introduce internet gambling legislation after the Easter recess. The Hill noted that the week of April 20th is a likely time frame.

Frank’s bill, which may create a complete licensing and regulatory framework for the internet gambling industry, will not be a rider to critical legislation, according to The Hill, which claimed, “The main proponent of a bill to regulate Internet gambling will introduce his legislation as a standalone bill and will not seek to add it to must-pass legislation.” Frank told the Washington, D.C. publication, “I want to do this with hearings, discussions, and votes.” The Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in the waning moments of the 2006 Congressional session. It was not discussed in the Senate and instead approved by unanimous consent and attached to the SAFE Port Act.

Frank had originally indicated that he would introduce internet gambling legislation in March. However, an ongoing economic meltdown has hindered other bills from being introduced and addressed. Frank is the Chairman of the powerful House Financial Services Committee, whose industry members like banks and credit card companies have been ravaged by the struggles on Wall Street and around the world. Consequently, the timeline for the introduction of a standalone internet gambling bill has been delayed. Frank told The Hill, “After the break, definitely in April.”

Frank has long been a proponent of internet gambling on Capitol Hill. He was the author of HR 2046, the Internet Gambling Regulation and Enforcement Act, which was introduced in April of 2007, but was not acted upon and now must be reintroduced for consideration. The bill attracted 48 co-sponsors. Last September, the House Financial Services Committee approved HR 6870 by a 30-19 vote, the second version of the Payments System Protection Act, which would have clarified what was legal and illegal under the UIGEA. However, the collapse of the global economy occurred shortly thereafter and the bill was placed on the backburner.

Although a final text of Frank’s new legislation has yet to be released, The Hill speculates on what it may entail: “Frank’s bill would remove the ban on Internet gambling, which Republicans fought hard to institute after heavy lobbying from conservative Christian groups when they controlled Capitol Hill. His legislation would regulate the practice as well as tax it, providing new revenues for the federal government.” A recent study released by PricewaterhouseCoopers revealed that taxing and regulating the internet gambling industry may yield up to $52 billion in revenue for the U.S. Government over a 10 year period. The figure is ultimately contingent on whether professional sports leagues choose to allow betting on games.

Some have argued that a bill that legalizes only online poker would stand a better chance of being passed than would a multi-faceted approach like Frank’s. In July of 2007, Congressman Robert Wexler (D-FL) introduced HR 2610, the Skill Game Protection Act, which would have exempted poker, bridge, chess, mah jong, and other player versus player games from the UIGEA and Wire Act. The bill created an important distinction between online casinos, where the action is primarily player versus the house, and online poker, where contestants battle against each other. Like HR 2046, HR 2610 was not acted upon during the previous Congressional session and must now be reintroduced.

The regulations of the UIGEA went into effect on January 19th as a “midnight rule” by the outgoing Bush Administration. Banks and other financial institutions must come into full compliance with the law by December 1st. In the meantime, over-blocking of transactions by Visa and MasterCard has led to complications for state lotteries in North Dakota and New Hampshire, where customers attempting to purchase tickets online are being declined.

Stay tuned to Poker News Daily for the latest legislative news from Washington, D.C. and around the world.

New NFL Lobbyist Seeks to Protect UIGEA

Recently, the National Football League (NFL) enlisted the services of Jeff Miller, who will serve as its chief lobbyist on Capitol Hill. According to an article authored by the Associated Press, Miller seeks to preserve the ban on internet gambling in the United States.

In 2006, the Unlawful Internet Gambling Enforcement Act (UIGEA) was ushered through Congress at the last minute by former Senate Majority Leader Bill Frist (R-TN). Although the UIGEA did not define what was legal and illegal under its jurisdiction, its effect was driving some of the world's largest online poker sites out of the U.S. market. Now, only a handful of rooms, such as PokerStars, Full Tilt Poker, Ultimate Bet, and Carbon Poker, accept U.S. residents. In addition, the UIGEA also eradicated payment processors such as Neteller and Citadel Commerce from the market.

On January 19th, the regulations of the UIGEA finally came to fruition as “midnight rules” passed by the outgoing Bush Administration. Many in the internet gambling industry questioned the role of Special Assistant to George W. Bush William Wichterman, who had also served as an NFL lobbyist. Whether the urging of Wichterman resulted in the UIGEA's regulations being pushed through remains unknown. However, his involvement prompted a letter by Congressman Steve Cohen (D-TN).

The NFL's newest hire, Miller told the Associated Press, "I'm a lifelong NFL fan, grew up in Wisconsin, [and] rooted for the Packers at my father's knee every Sunday. I had had opportunities in the past to leave the Hill and do other things, such as work at a law firm and lobby firm. But when the NFL calls, you can't turn that down." When asked about the upholding the existing internet gambling legislation, which consists of both the UIGEA and Wire Act of 1961, Miller responded, "We want to maintain the integrity of the game, and gambling threatens that."

The Associated Press article added that Miller will be at the forefront of sports leagues' efforts to preserve the status quo with regards to internet gambling. Congressman Barney Frank (D-MA) has led the effort to overturn the UIGEA, or at least clarify it for the benefit of the financial services industry. HR 6870, the second version of the Payments System Protection Act, was passed out of the House Financial Services Committee, of which Frank is the Chair, by a 30-19 vote last September. However, due to the then-emerging economic crisis in the United States, it did not see time on the House floor.

According to the Associated Press, the NFL previously sought outside counsel. Miller's hiring bucks that trend. He explained, "The emphasis is to have a full-time person spending every waking moment thinking about how what Congress or the administration is doing is going to affect the NFL's business model." The NFL held its annual owners' meetings last week in California, instituting a number of rule changes as well as adjusting the draft order based on a team's finish in the playoffs. Fantasy sports received a specific exemption from the UIGEA, although the law forced industry websites to guarantee prize pools and not allow a manager to have all of his players come from the same team.

Joe Brennan, Chairman of the Interactive Media Entertainment and Gaming Association (iMEGA), told Poker News Daily why sports betting has received such a bad rap: “It's the only type of betting where the courts have been explicit. The Wire Act arose out of a couple of sports betting scandals back in the 1950s. It always comes back to trying to protect the integrity of the game.” iMEGA is suing to declare the Professional and Amateur Sports Protection Act (PASPA) unconstitutional. The case has been assigned to Chief Judge Garrett E. Brown, Jr. of the New Jersey District Court.