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The Legal Landscape of 2006-2007

Looking Back and Looking Forward

by Allyn Shulman |  Published: Jan 17, 2007

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UIGEA
U.S. citizens witnessed outrageous conduct by our legislators at the end of 2006 when Congress passed the Unlawful Internet Gambling Enforcement Act. The Act was steamrolled through Congress as a last-minute attachment to the port authority bill that was sure to pass. The actions of Congress were reprehensible because of both the manner in which the Act passed and the content that passed.

Criticism of the UIGEA
Among others, the Washington Times criticized the manner in which former Senate Majority Leader Bill Frist snuck the bill through Congress. His ill-conceived efforts circumvented the American process of dialogue and public debate. The time-honored tradition of community debate was violated and citizens for and against the Act were offended.

As a matter of fact, Frist, a former presidential hopeful, shot himself in the foot by his sneaky behavior. In the exit polls, a majority of Frist's constituents said they would not support him for the presidency, so eventually he announced that he was going back to the practice of medicine.

The content of the Act is silly because it is akin to prohibition. Our government is trying to make it more difficult for citizens to play online poker when it has become a national pastime.

What the UIGEA Does
The Act attempts to make it more difficult to get money into a site by forbidding U.S. financial institutions from funding the type of online gambling that the law has previously made illegal. The new bill does not make online gaming illegal where it was not illegal before. The bill merely speaks to the mechanism by which an online account is funded. This basically means players won't be able to use credit cards to fund their online accounts. However, for years, players have been moving to e-cash such as NETELLER; also, new offshore funding companies are springing up so fast that the law will end up having no impact on the bursting online poker industry.

The United Kingdom
While the U.S. is busy trying to figure out a way to prohibit online poker, other countries are analyzing ways to regulate the industry. The United Kingdom hosted a conference recently in order to discuss ways to stop criminals from defrauding online gamblers, to deny children access to gaming web sites, and to prevent money laundering. Officials from 32 nations participated in the conference to discuss ways of implementing the regulatory guidelines set forth by Britain in its efforts to regulate online gambling. The U.S. chose not to participate.

The World Trade Organization
On another front, the World Trade Organization is close to announcing its ruling regarding whether the U.S. has properly complied with the WTO's previous finding that the U.S. government's interference with a multibillion-dollar industry violated international trade rules, harmed Antigua, and must stop. Everyone in the industry knows that the U.S. will lose.

The American Gaming Association
Finally, on the home front, American Gaming Association (AGA) President and CEO Frank J. Fahrenkopf Jr. recently told me, "We want an independent study done by the National Academy of Science, to examine software and answer the question of whether online gaming can be properly regulated. If it can be regulated, under the 10th Amendment, states should be given that right."

Support for Online Poker
Last year, Congressman John Porter and Congresswoman Shelley Berkley of Nevada asked for a study to determine how to properly regulate online poker. There were about 50 bipartisan supporters, but it was too late in the session. There are compelling reasons to believe this issue will be addressed in the coming year.

Also, Rep. John Conyers Jr. of Detroit easily won his seat in the House by 84 percent. He is expected to lead the Judiciary Committee, giving him a key platform to voice his views. Conyers has been the voice of reason regarding online gaming. He has consistently argued for a study aimed at regulating online gaming. He has likened online anti-gaming laws to Prohibition.

The Poker Players Alliance
An organization near and dear to my heart is the Poker Players Alliance, a grassroots organization of people who support the right to play online poker. I am a board member, along with Greg Raymer, Howard Lederer, Chris Ferguson, Linda Johnson, and Jan Fisher, among others.
President Michael Bolcerek has announced big plans for 2007, including working with the congressmen and congresswomen who support online poker in order to get a carve out for the game of poker.

It is Michael's opinion that poker is an American game, played by families, women, and young adults. The PPA has a goal of educating congressmen and the American people, with the ultimate goal of getting poker an exemption as a game of skill.

There is great hope regarding the law of online gaming in years to come, and Card Player will keep our readers educated regarding up-to-date analysis of developments and laws in both our magazine and our online site, www.CardPlayer.com.

May this be a good year for all of our readers! spade