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Harry Reid pushing to legalize online poker for American casinos, horse tracks

Online GamblingOnline Gambling: Harry Reid pushing to legalize online poker for American casinos, horse tracks

Senator Harry Reid (D-Nev.) is reportedly taking a gamble that would change up the online poker industry.

The popular game may soon be run on the web by casinos in Nevada and across the United States, thanks to legislation being floated by the Nevada senators' staffers, the Wall Street Journal reported.

American financial institutions were banned from processing online gambling transactions in 2006, costing the industry billions in what has been a rapidly-growing American addiction worth $25 billion a year, according to ABC News.

Supporters of the bill — which hasn't officially been introduced — have already drawn fire from some lawmakers who slammed the effort as a bill that would pray on gambling addicts to pay for the nation's growing deficit.

"Congress should not take advantage of the young, the weak and the vulnerable in the name of new revenues to cover more government spending," Rep. Spencer Bachus (R-Ala.) wrote in a letter obtained by the Wall Street Journal.

While opponents of the bill maintain that legalizing online gambling for American-based companies would increase the spread of gambling addiction in the country, advocates for the bill maintain that legalizing it would give state regulators the ability to watch the industry and intervene.

"We're very strictly regulated, but then in the online space there are all these unregulated, untaxed groups running internet gaming," Alan Feldman, a spokesman for MGM Resorts International, which stands to rake in millions if the legislation passed, told ABC.

According to a draft of the bill obtained by the Journal, the legislation would allow existing casinos, horse tracks and slot-machine makers to get into the industry over the first two years of the bill. After that, it would be a free-for-all for any company to jump in.

Reid, who has previously opposed legalizing online poker for big American casinos, received millions from big gambling interests during his tough re-election campaign against Tea Party favorite Sharron Angle.

Casino owners are hopeful that the bill can be pushed through during the lame duck session, but aren't getting their hopes up too high.

"A lot of things happen in this kind of time frame," Feldman told the Journal.

Bill could change industry

Rarely is the final World Poker Tour event of the year overshadowed by anything, but that seems to be the case in 2010 with the eyes and ears of poker players and fans waiting to see what will come out of the efforts to pass the online poker bill in Washington, D.C. While Antonio Esfandiari brought in the chip lead on Day 4 at the Doyle Brunson North American Five Diamond Poker Classic, the latest draft of Sen. Harry Reid's bill to legalize the online poker industry shed some additional light on some of the issues that may affect all those who enjoy the game.

From a very basic standpoint, here are a couple of bullet points to focus on, but keep in mind this bill is constantly changing and is only a draft. The bill will also need to be passed before any of this would officially apply to the current online poker providers.

The bill appears to be an attempt to kill the revenue streams of existing online poker Web sites, perhaps to quell any competition with Nevada casinos.

  • For 15 months, there will be no legal online poker in the United States. Once this bill is enacted, the first license will be issued 15 months from that date.

"No qualified body may issue a license under this title before the date that is 15 months after the date of the enactment of this Act," said the draft of the bill. "Qualified bodies shall, to the extent practicable while meeting the requirements and standards of this title, issue multiple licenses on the date that is 15 months after the date of the enactment of this Act in order to ensure a robust and competitive market for consumers and to prevent the first licensees from gaining an unfair competitive advantage."

  • Once the bill is enacted, current sites that offer play to players from the United States will have 30 days to cease those operations if they wish to receive a license.

"Not later than 30 days after the date of the enactment of this Act, cease offering, accepting and providing services with respect to bets or wagers from persons located in the United States"

  • Sites will then inform players about how to withdraw their money. If they do not withdraw within two years, the money will then be sent into an escrow account "for safekeeping and orderly disposition as the Secretary may direct."
  • The rumored blackout, in which current online sites could not get a license for an additional two years, seems to have been removed from this draft.
  • The Unlawful Internet Gambling Enforcement Act has changed in accordance with the new regulations and this should open up the ability for players to deposit with ease.

"A financial transaction provider shall not be held liable for engaging in a financial activity or transaction, including a payments processing activity, in connection with a bet or wager permitted by the Prohibition of Internet Gambling, Internet Poker Regulation, and Strengthening UIGEA Act of 2010 or the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.) unless the financial transaction provider has knowledge or reason to know that the financial activity or transaction was conducted in violation of either such Act or any other applicable provision of Federal or State law."

  • Sites will have to pay 20 percent of the revenue generated as a licensing fee.

"Each person who is a licensee shall be required to pay not later than 15 days after the end of each calendar month an Internet poker license fee equal to 20 percent of a licensee's Internet poker receipts for that calendar month."

  • The sites will report every player's winnings and losses, as required.
  • Hardware for the sites that obtain a license will be located in the United States.
  • Each license carries a five-year term.
  • If the sites that should have a license do not apply for one and continue to act against policy, there are severe consequences:

"Notwithstanding any other provision of law, the Secretary may assess upon a person that is required to obtain a license under this title, but fails to obtain a license under this title, a civil penalty of not more than the greater of (i) the amount of bets or wagers taken by the person from players in the United States during the period that a license was needed but not held by the person; or (ii) $1,000,000 per day that the person accepts bets or wagers from players in the United States during the period that a license was needed but not held by the person."

There will also be studies created regarding Internet gambling and all sites will have a feature to allow players to exclude themselves from the activity.

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35 comments. Last comment 4 years ago by betop25pcent.
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dpoly1's avatar - driver
PA
United States
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Posted: December 8, 2010, 10:31 am - IP Logged

Dingy Reid attempting to put his hand in the pocket of our Citizens Again!

Red Devil ↔ Dingy Harry Reid!

    Avatar
    Kentucky
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    Member #32652
    February 14, 2006
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    Posted: December 8, 2010, 10:55 am - IP Logged

    Dingy Reid attempting to put his hand in the pocket of our Citizens Again!

    Red Devil ↔ Dingy Harry Reid!

    Are you against millions of U.S, citizens choosing to play poker, bingo, and other games of chance online from the privacy of their homes?

      Todd's avatar - Cylon 2.gif
      Chief Bottle Washer
      New Jersey
      United States
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      Posted: December 8, 2010, 11:13 am - IP Logged

      Are you against millions of U.S, citizens choosing to play poker, bingo, and other games of chance online from the privacy of their homes?

      I like the idea of online gambling, because quite simply Americans should be able to spend their money however they choose.

      I can't stand the whiners who come out saying "Wah, wah, wah, it will prey on the poor, etc., etc."  That's just plain silly.  If those people truly want to "help the poor", let them try to outlaw alcohol and tobacco first, because a lot more money is spent on those vices than gambling.  They choose gambling as their "evil product" for some odd reason.

      Anyway, the thing I DON'T like about what Harry Reid is doing is that he is attempting to pay back the big casinos ("big businesses") that funded his campaign, both through enormous donations as well as getting/forcing the union memberships to vote for him.

      His legislation is designed to ensure that existing poker Web sites are placed at a distinct DISadvantage vs. the Nevada casino corporations.  That's typical Harry Reid stuff.  Corrupt.

      Candidly, Barney Frank's legislation earlier this year was better.

       

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        sully16's avatar - sharan
        Listens to the wind

        United States
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        October 28, 2009
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        Posted: December 8, 2010, 11:34 am - IP Logged

        I like the idea of online gambling, because quite simply Americans should be able to spend their money however they choose.

        I can't stand the whiners who come out saying "Wah, wah, wah, it will prey on the poor, etc., etc."  That's just plain silly.  If those people truly want to "help the poor", let them try to outlaw alcohol and tobacco first, because a lot more money is spent on those vices than gambling.  They choose gambling as their "evil product" for some odd reason.

        Anyway, the thing I DON'T like about what Harry Reid is doing is that he is attempting to pay back the big casinos ("big businesses") that funded his campaign, both through enormous donations as well as getting/forcing the union memberships to vote for him.

        His legislation is designed to ensure that existing poker Web sites are placed at a distinct DISadvantage vs. the Nevada casino corporations.  That's typical Harry Reid stuff.  Corrupt.

        Candidly, Barney Frank's legislation earlier this year was better.

        yep,

        There's only one US Flag

          dpoly1's avatar - driver
          PA
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          Member #66141
          October 16, 2008
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          Posted: December 8, 2010, 11:57 am - IP Logged

          Are you against millions of U.S, citizens choosing to play poker, bingo, and other games of chance online from the privacy of their homes?

          I DON'T like Dingy Harry pandering for votes with this legislation.

          He could give a crap about people ....... it is about HIS power.

          If people want to play on-line poker ....... that is their business!


            United States
            Member #68713
            December 28, 2008
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            Posted: December 8, 2010, 12:21 pm - IP Logged

            I DON'T like Dingy Harry pandering for votes with this legislation.

            He could give a crap about people ....... it is about HIS power.

            If people want to play on-line poker ....... that is their business!

            Cussing FaceYou people are such D--- hypocrites, make me sick always talking about the Dems and what their doing to maybe paid back their contributor.  You never say anything about those low life snakes of Republicans that would take bread out the mouths of children and would let people be put out their homes. No NoSo don't get me started.  If you like the ruling go with it  and leave Reid out of your warp reasoning.Now you folks have a good day.Smiley

              Todd's avatar - Cylon 2.gif
              Chief Bottle Washer
              New Jersey
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              Posted: December 8, 2010, 12:42 pm - IP Logged

              Cussing FaceYou people are such D--- hypocrites, make me sick always talking about the Dems and what their doing to maybe paid back their contributor.  You never say anything about those low life snakes of Republicans that would take bread out the mouths of children and would let people be put out their homes. No NoSo don't get me started.  If you like the ruling go with it  and leave Reid out of your warp reasoning.Now you folks have a good day.Smiley

              Gee louise, which Republicans have taken the bread out of the mouths of children?  Seems to me the Democrats have controlled the Congress since 1996, and they have controlled both the Congress and the Presidency for the past two years.  So if bread is being taken out of children's mouths, it would be the Democrats who have done it.

               

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                Jordans121's avatar - nw bookeep.jpg

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                Posted: December 8, 2010, 12:56 pm - IP Logged

                Gee louise, which Republicans have taken the bread out of the mouths of children?  Seems to me the Democrats have controlled the Congress since 1996, and they have controlled both the Congress and the Presidency for the past two years.  So if bread is being taken out of children's mouths, it would be the Democrats who have done it.

                All of them are crooks. They all work for big business. Its the only job (government) in a America that one can get by blatantly lying to all of his/her constituents.

                "Many Strategies|One Game"

                  Todd's avatar - Cylon 2.gif
                  Chief Bottle Washer
                  New Jersey
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                  Posted: December 8, 2010, 1:26 pm - IP Logged

                  All of them are crooks. They all work for big business. Its the only job (government) in a America that one can get by blatantly lying to all of his/her constituents.

                  I agree, in that it's in the nature of the job to be dishonest.  My only point with my last comment is that I am sick of people hammering Republicans, when the Democrats created the environment we now find ourselves in, with monumental multi-trillion-dollar debt (generational theft), and everything done in the past two years has HURT, rather than helped, the economy.

                  If the politicians are dishonest, WE can at least be honest.  People who deny the wrongs of their party are just as guilty as the lying politicians they are defending.

                  By the way, I can read your message just fine without the huge red font.

                   

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                    United States
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                    Posted: December 8, 2010, 1:27 pm - IP Logged

                    Gee louise, which Republicans have taken the bread out of the mouths of children?  Seems to me the Democrats have controlled the Congress since 1996, and they have controlled both the Congress and the Presidency for the past two years.  So if bread is being taken out of children's mouths, it would be the Democrats who have done it.

                    Yes Todd , I am really upset right about now ,They( Republicans) have really been mean spirited lately,not that they have been warm and fuzzy in the past.They would let people go without bread on their table to have tax cuts for the very rich.The reasoning behind this are that the worthless blue dog Dems, which should really stop hiding their fear of being call what they really are( Republicans )behind Democrats.They help the Republicans hold up progress that a fact.That's the very reason the President feel as though he has to cave to their demands,  but he has a heart.Patriot

                      Todd's avatar - Cylon 2.gif
                      Chief Bottle Washer
                      New Jersey
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                      Posted: December 8, 2010, 1:32 pm - IP Logged

                      Yes Todd , I am really upset right about now ,They( Republicans) have really been mean spirited lately,not that they have been warm and fuzzy in the past.They would let people go without bread on their table to have tax cuts for the very rich.The reasoning behind this are that the worthless blue dog Dems, which should really stop hiding their fear of being call what they really are( Republicans )behind Democrats.They help the Republicans hold up progress that a fact.That's the very reason the President feel as though he has to cave to their demands,  but he has a heart.Patriot

                      Everyone has a right to their own opinion, but you seem to be throwing out a bunch of statements without a single piece of evidence to back it up.  Care to name a single Republican who has been mean-spirited?  What exactly was their mean-spirited act?  I don't deny it's not possible that a "mean-spirited act" has been committed by a Republican, but I am curious to understand exactly what you consider to be a mean-spirited act.

                      The president was caving to the demands of the American people, who overwhelmingly voted for candidates who want to repeal the awful health care legislation and keep taxes low.  The Republican "demands" are simply acting on what the American people sent them there to do, because the president has made our economy so bad with his multi-trillion-dollar debt.

                       

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                        inittowin's avatar - 039ee315cfea4c12c8f5
                        If you don't like it, spit it out!
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                        Posted: December 8, 2010, 1:43 pm - IP Logged

                        Ried ain't doing it for "Americans", he's doing it for the people that saved his azz in the past election.  That was the casino unions of Nevada.

                        There has to be a pay back and some pockets lined!

                        I'm all for online betting, but it is solely to enhance the casinos of Nevada.

                          Illegitimi Non Carborundum!

                        Patience & a progressive wagering plan WILL make you $$$!

                          Jordans121's avatar - nw bookeep.jpg

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                          Posted: December 8, 2010, 2:06 pm - IP Logged

                          Everyone has a right to their own opinion, but you seem to be throwing out a bunch of statements without a single piece of evidence to back it up.  Care to name a single Republican who has been mean-spirited?  What exactly was their mean-spirited act?  I don't deny it's not possible that a "mean-spirited act" has been committed by a Republican, but I am curious to understand exactly what you consider to be a mean-spirited act.

                          The president was caving to the demands of the American people, who overwhelmingly voted for candidates who want to repeal the awful health care legislation and keep taxes low.  The Republican "demands" are simply acting on what the American people sent them there to do, because the president has made our economy so bad with his multi-trillion-dollar debt.

                          Dont forget we had a surplus before Bush got into office, Who then lied to America about WMD's, then proceeded to plunge us into two everlasting wars, now trying to sell us his book of lies and deceit. The american people did not vote to give rich people 700 billion in tax-cuts while further increasing our debt. Its a fact that the growing disparity of the wealthy and poor are destroying the middle class. BTW, Clinton was the one who signed in all that crap (deregulation) for banks which led to millions forced out of their homes. Like I said before, they are all crooks who work for the powerful corporations of America. War is no longer a honorable event, its a business which by the way Cheney greases his contracting palms. I will not let anyone disparage Obama who has been in office for 2 years. People just want to have a reason to hate him. But he is very smart and it will show in 2012.

                          "Many Strategies|One Game"

                            Todd's avatar - Cylon 2.gif
                            Chief Bottle Washer
                            New Jersey
                            United States
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                            May 31, 2000
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                            Posted: December 8, 2010, 2:53 pm - IP Logged

                            Dont forget we had a surplus before Bush got into office, Who then lied to America about WMD's, then proceeded to plunge us into two everlasting wars, now trying to sell us his book of lies and deceit. The american people did not vote to give rich people 700 billion in tax-cuts while further increasing our debt. Its a fact that the growing disparity of the wealthy and poor are destroying the middle class. BTW, Clinton was the one who signed in all that crap (deregulation) for banks which led to millions forced out of their homes. Like I said before, they are all crooks who work for the powerful corporations of America. War is no longer a honorable event, its a business which by the way Cheney greases his contracting palms. I will not let anyone disparage Obama who has been in office for 2 years. People just want to have a reason to hate him. But he is very smart and it will show in 2012.

                            OMG, not the "Bush lied" crap again.  Why not just say "Clinton Lied", because Bush said exactly the same thing as Clinton.

                            In case you forget (which you seemed to), Bush entered office during a mild recession that started under Clinton (at the end of the dot-com bubble).  Bush lowered tax rates, which started a big economic recovery, and then we all enjoyed several years of prosperity.

                            Then, under the Democrat Congress that took control in 2006, the housing mess started, with Congress instructing Freddie Mac and Fannie Mae to give hundreds of thousands of home loans to people who could not afford them.  That, combined with the Community Reinvestment Act started under Carter, plus some extremely risky and poor behavior on the part of major Wall Street banks (most of which support Democrat candidates), blew up the economy in 2008.

                            Obama has nothing except make the situation worse, by putting the country into debt to the tune of an additional $3 trillion (at least) since he took office.

                            Instead of fixing the economy and finding ways to put the private sector back to work, he focused the majority of his time and effort on his horrid health care plan, which 70% of the country said they absolutely did not want.

                            People do not want to "hate him".  They just don't want a president that is trying to instantiate Socialism here.  They don't want a president that thrives on class envy and class warfare.  They want a president who loves capitalism, since it is responsible for creating the best, most prosperous country ever on this planet.

                            I'm not sure what will happen in 2012, but if Obama refuses to listen to the American people, he will probably suffer the same fate as Democrat congressional candidates in 2010.

                             

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