Barney Frank Hearing May Shape Online Poker’s FutureCommittee Meeting Scheduled for Dec. 3 at 10 a.m. EST |
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Nearly seven months after Rep. Barney Frank first introduced his two poker-related bills in Congress, the Massachusetts Democrat will hold a hearing to discuss the legislation and address any concerns that skeptics might have concerning the bills.
“This hearing will provide further evidence on the ability to effectively regulate Internet gambling and require licensed operators to utilize already-proven technologies to protect consumers,” said Michael Waxman, a spokesperson for the Safe and Secure Internet Gambling Initiative. “It’s expected this hearing will answer any outstanding questions and pave the way for a vote in the committee on Chairman Frank’s legislation.”
The hearing, which will begin Thursday at 10 a.m. EST, is expected to feature testimony from industry leaders addressing online security and consumer safety. According to Waxman, industry experts will talk in detail about how current technology is successful in “blocking minors from gambling online, combating compulsive gambling, and protecting consumers against money laundering, fraud, and identity theft.”
Watch the Dec. 3 hearing live on the House Financial Services committee website.
Rep. Frank’s bills — “Reasonable Prudence in Regulation Act” (H.R. 2266) and “Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009” (H.R. 2267) — were introduced in May of this year and could potentially boost the online poker industry if signed into law. Both bills are on the agenda for Thursday’s hearing.
H.R. 2266 seeks to delay the deadline that banks must comply with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA), a 2006 law that did nothing to criminalize the act of playing poker online, but did hamper the industry by making it more difficult to deposit and withdraw funds from poker sites. Originally scheduled to go into effect Dec. 1 of this year, the Treasury and Federal Reserve agreed to Rep. Frank’s request to delay compliance, with a new deadline set for June 1, 2010. H.R. 2266 would delay that date even further, to Dec. 1, 2010.
Concerning the delay that was announced last week, Rep. Frank said, “This will give us a chance to act in an unhurried manner on my legislation to undo this regulatory excess by the Bush administration and to undo this ill-advised law.”
H.R. 2267 would explicitly legalize and regulate the online poker industry, and could lead to more players entering the game with easier deposit methods and more lenient advertising capabilities for the sites. Gambling operators would be required to obtain U.S. licenses and pay both federal and local taxes. Individual states would be able to opt out of Frank’s bill. The Joint Committee on Taxation has projected that the U.S. Treasury could raise $42 billion over the next 10 years if online gaming was regulated.
Rep. Frank serves as the chairman of the House Financial Services committee, a group that includes 70 members of Congress. Hearings on bills are customary before a vote takes place in Congress.
Leaders of the Poker Players Alliance, an advocacy group with more than a million members, are expected to attend the hearings, along with representatives from the National Thoroughbred Racing Association and the American Greyhound Track Operators Association — other industries that have been adversely affected by the UIGEA.
PPA Executive Director John Pappas says the recent UIGEA delay has put the ball in Congress’ court.
“[This] puts the burden back on Congress,” Pappas said. “We’ve delayed this; it’s up to you guys to clarify this law. It really puts Congress on notice to do something.”
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