Net Bet Blog

Bad news for the betting industry following the defeat of Frank's and King's bills. The short sightedness of the US government is frankly astonishing. Can they not see that online gaming is UP in the US and that millions participate - the only difference being these are private and not public firms (that in theory should offer more protection to US citizens).

The story goes on. I suspect this will merely anger the banking sector who need to lobby more forcefully. Whilst the gaming sector does not have the credibility to mount an effective lobby the banking sector does and is well connected.

Mabybe next time.

Online gambling bill defeated [GPWA]

The House Financial Services Committee rejected a bill Wednesday that would have prohibited the Treasury Department and the Federal Reserve from proposing and implementing regulations to enforce the Unlawful Internet Gambling Enforcement Act.

In its mark-up session, the Committee adopted an amendment proposed by Rep. Peter King (R-NY) that would not only stop the implementation of any UIGEA regulations, but would also force the Treasury Department, the Justice Department and the Federal Reserve to sit down and define unlawful Internet gambling. King said that this "was a banking issue, not a gambling issue" and that the banking industry shouldn't be in the position of determining what is legal and illegal.

The King amendment was defeated by the full committee with a vote of 32 for and 32 against. The original bill proposed by Rep. Barney Frank (D-Mass.) and Rep. Ron Paul (R-Tex.) was defeated in a voice vote.

The defeat is a blow to both the online gambling industry, which has been looking for ways to repeal the UIGEA, and the banking industry, which wants no part in trying to regulate the online gaming industry.

"The PPA is surprised that the Financial Services Committee today failed to clarify what constitutes 'unlawful Internet gambling' under the Unlawful Internet Gambling Enforcement Act (UIGEA)," said Alfonse D'Amato, chairman of the Poker Players Alliance. "The King Amendment would have required a separate formal rulemaking with an administrative law judge to determine the definition of unlawful Internet gambling."

"The Federal Reserve, Department of Treasury and the banking industry have all testified before Congress that the lack of a definition of 'unlawful Internet gambling' makes it extremely difficult if not impossible to enforce this law and would result in a broader review and denial of financial transactions because they could possibly be deemed unlawful under UIGEA," D'Amato added.