A Closer Look at Barton's Bill

Citing poker as a game of skill, Rep. Joe Barton’s (R-Texas) Internet Gambling Prohibition, Poker Consumer Protection, and Strengthening UIGEA Act of 2011 (H.R.2366), will give the states the right to choose whether or not they want to offer internet poker, as states are automatically opted in under the legislation, but have the right to decline.

For the short-term, the only companies qualified to obtain a license will be well-established brick-and-mortar casinos, race tracks and card rooms located in the U.S. The operator pool may be expanded after two years.

The bill, which clarifies the 2006 Unlawful Internet Gaming Enforcement Act, states that holding an online poker “license is a privilege, not a right,” and that a decision by a “qualified state agency not to grant a person a license or certificate of suitability, or to terminate a license, or revoke a certificate of suitability, is not reviewable under federal law or the law of any jurisdiction other than the jurisdiction of the qualified state agency.”

Each license is granted on a five-year term, and would require the licensee to ensure that the poker player is at least 21, that the participant is located in a jurisdiction where the activity is permissible, that all taxes associated with online poker play are reported and collected, and that internet poker games are fair and honest. Barton’s bill makes specific reference to “bots,” which make bets or wagers according to algorithms. Criminal penalties would be established for cheating.

In addition, stiff fines, deposited into the Treasury of the United States, and/or imprisonment for up to five years, would result if operating an unlicensed internet poker room. The bill would set up an Office of Internet Poker Oversight in the Commerce Department, which would oversee the issuing of licenses. Also, vendor user fees would help create an Internet Poker Oversight Fund to be used as needed.

In what is perhaps an effort to safeguard against a similar situation with player funds after Black Friday, the bill states that if a license is revoked, an online poker operator must return funds to players within 30 days and place in escrow those funds that are not immediately returnable so to ensure their safekeeping.

In the section detailing measures to insure responsible gaming, the bill interestingly makes a reference to child-support payments. “When it is made known to the Secretary or a qualified state agency by a federal or state court or a competent state agency involved with the administration or enforcement of a court-ordered child support payment that a particular individual is delinquent with respect to court-ordered child support payments, the Secretary shall include that individual on the list [of excluded players]."

Despite the failure of other attempts at federal online poker legislation, Barton’s bill has bipartisan support. So far 11 cosponsors have signed on, including Rep. Barney Frank (D-MA), who had his own online poker efforts fail, and Rep. Ron Paul (R-TX).

“Poker is an all-American game, and it’s a game that requires strategy and skill. Millions of Americans play poker online. Although it’s legal to play for money, it’s illegal to process the transactions that allow players to collect their earnings,” said Rep. Barton. “We want to have an iron-clad system to make sure that those who play for money are playing in an honest, fair system where they can reap the benefits of their winnings. This bill is about having the personal freedom to play a skill-based game you enjoy without fear of breaking the law.”

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