Online Poker Had Senate Hearing On WednesdayDiscussion Was The First Of Its Kind On Capitol Hill In Years |
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Two new online gaming bills were introduced to Congress this year, and on Wednesday the issue had a hearing in front of the Senate’s consumer protection subcommittee. It was attended by industry heavyweights, including gaming attorneys and lobbyists.
Lawmakers were told that a federal online bill would be needed for a host of reasons, chief being that there should be a uniform regulatory standard for all states looking to get in on the activity. So far, Nevada, Delaware and New Jersey have legal online betting for real money, while some other states, most notably California, are considering the issue.
While casino firms and online gaming providers are taking what they can get by preparing for a state-by-state patchwork, most, if not all, prefer a nationwide regime.
At the hearing, a Nevada Congressman brought up the fact that the 1961 Wire Act had been altered by the Obama administration, which provided the legal room for states to move in on Internet gambling on their own. “The reason we are here today is on December 23, 2011, the administration changed this so their friends in Illinois and New York could put their lottery tickets online,” Sen. Dean Heller (D-Nevada) said. “Unilaterally the White House made this decision two days before Christmas when all of us were out of town. And it concerns me.”
Such a swift change to the Wire Act has some worried that the safeguards might not be quite strong enough to ensure that the new industry and it customers are protected from harm.
“Law enforcement is always behind the eight ball on technology, especially state and local,” Chuck Canterbury, national president of the Fraternal Order of Police, said. “It will take us years to get to the place where we need to be technologically to fight any sort of money laundering at the state level, especially when it is cross-border money laundering.”
The American Gaming Association, which supports the idea of an online poker bill but not a measure that would allow full-fledged online wagering, issued a statement on the hearing.
“Internet poker is a reality that is here to stay,” Geoff Freeman, president and CEO of the AGA, said. “The question is whether Congress will ensure minimum regulatory standards of online poker, protect consumers, exclude bad actors from the American market and provide Native American tribes with an appropriate regulatory framework…The reasonable approach to online poker regulation proposed by the gaming industry is currently under threat by the gambling expansion free-for-all about to take place at the state level. If the federal government fails to rapidly act, the United States may soon experience the largest expansion of gambling in its history, including online slots, blackjack and other traditional casino games of chance.”
The two online gaming bills up for consideration on Capitol Hill are from Rep. Joe Barton (R-Texas), who is seeking to legalize just Internet poker, and Rep. Peter King (R-New York), who is looking to authorize a host of casino games in cyberspace. The bills face an uphill battle.
No action was taking on either measure at the hearing this week.
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