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Federal online gambling legislation clears big hurdle

Online GamblingOnline Gambling: Federal online gambling legislation clears big hurdle
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Maybe there are some teeth in the push for legalization and sensible federal regulation of the Internet gambling industry after all.

Sponsored by Rep. Barney Frank (D-Mass.) — chairman of the House Financial Services Committee — HR 2267 is a bill designed to establish federal oversight of an online gambling industry that currently resides in murky legal waters for U.S. players.

It passed overwhelmingly 41-22 via committee vote last week, advancing the legislation to the House floor, where it hopefully will be voted on before the end of the 2010 session. If it gets that far, it will be the deepest penetration of online gaming law at the federal level in history.

"The good news is this is significant progress," said Michael Waxman of the Safe and Secure Internet Gambling Initiative. "Last week's vote showed the bi-partisan support is there."

HR 2267 has the potential to open an enormous revenue stream in an era where cash is badly needed at all levels of government.

One analysis completed by the Congressional Joint Committee of Taxations concluded that regulated online gambling could generate $42 billion in revenue over the first 10 years of HR 2267 implementation at the federal level.

At the state level, a 6 percent deposit fee could generate an additional $30 billion.

"Those figures assume you are starting with an industry where millions of players are already engaged," Waxman said. "And with regulation, there is an expectation that many more will take up and enjoy this form of recreation. There is a strong possibility that this bill would be included in a larger legislative package as a way to offset the cost of other programs."

If HR 2267 is signed into law, sites will have to apply for federal licensing. There's no language about a cap on the licenses, but in a regulated environment, safeguards against such things as identity theft, compulsive gambling behavior and underage gambling would have to be in place in order to secure one.

Sites able to comply and secure licensing will strike oil. Those that cannot will fade away.

"It's up to the feds to determine how this is going to work," Waxman said.

Even though poker players make up the bulk of the online gaming industry, the legislation isn't poker specific. HR 2267 would also regulate online casino games such as blackjack, slots, table games, etc.

It doesn't include online sports betting.

The major benefit to regulation for players resides in personal and legal security of funds. In the current market, there is no legal recourse for such things like frozen money and cheating outside of negotiation with the site itself.

Your average U.S. player isn't going to get a court to hear a case in Costa Rica.

According to Waxman, players shouldn't expect a lengthy delay with regulation if HR 2267 becomes a reality.

"The idea of online gambling regulation is not new," Waxman said. "The activity is successfully regulated in many countries throughout the world. It should not be a difficult lift to take on this job. A much more difficult task is trying to enforce a prohibition on the activity, which will ultimately fail."

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13 comments. Last comment 6 years ago by pamelab.
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United States
Member #68713
December 28, 2008
301 Posts
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Posted: August 7, 2010, 10:41 pm - IP Logged

I am glad this is a good ideal that way, we can play in all those states we have been seeing all our numbers pull.Thumbs Up I am happy about this news.Hurray!

    Jack-C's avatar - us
    San Diego, CA
    United States
    Member #61467
    May 24, 2008
    28146 Posts
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    Posted: August 7, 2010, 11:09 pm - IP Logged

    This is great IF they allow lotto betting with the offshore accounts.  Hopefully they will.  This will also put a big hurt on those bookies in the Bahamas.

      Grovel's avatar - f800e6a39fbfea795d1dcbb09f2244
      Little Rock, AR
      United States
      Member #68365
      December 19, 2008
      241 Posts
      Online
      Posted: August 8, 2010, 12:43 am - IP Logged

      Legalize my marijuana fist then worry about gambling!

        js1237's avatar - scenery water_mountains.jpg
        NEW YORK
        United States
        Member #3100
        December 23, 2003
        334 Posts
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        Posted: August 8, 2010, 2:45 am - IP Logged

        Let's hope that it don't get dragged out for years to come....

        "May The Numbers Be With Us All $$$$"....js1237....Sun Smiley

          rdgrnr's avatar - walt
          Way back up in them dadgum hills, son!
          United States
          Member #73904
          April 28, 2009
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          Posted: August 8, 2010, 4:52 am - IP Logged

          I support the legislation but with Barney Frank sponsoring it I just naturally get that dirty, sleazy, slimy, filthy, creepy feeling that permeates everything he touches.


                                                       
                               
                                                   

           

           

           

           

                                                                                                             

          "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                      --Edmund Burke

           

           

            rdgrnr's avatar - walt
            Way back up in them dadgum hills, son!
            United States
            Member #73904
            April 28, 2009
            14903 Posts
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            Posted: August 8, 2010, 4:57 am - IP Logged

            Legalize my marijuana fist then worry about gambling!

            Like wow dude, wrong website, man. Heavy, far out.


                                                         
                                 
                                                     

             

             

             

             

                                                                                                               

            "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                        --Edmund Burke

             

             

              TnTicketlosers's avatar - Lottery-065.jpg

              United States
              Member #71120
              February 19, 2009
              1209 Posts
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              Posted: August 8, 2010, 8:00 am - IP Logged

              So does this mean I can get on line and play any other states numbers?????????   So is this why Tennessee has let players win the last couple days????????  It will be low payouts coming up..

                four4me's avatar - gate1
                MD
                United States
                Member #1701
                June 18, 2003
                8364 Posts
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                Posted: August 8, 2010, 11:28 am - IP Logged

                I am glad this is a good ideal that way, we can play in all those states we have been seeing all our numbers pull.Thumbs Up I am happy about this news.Hurray!

                Don't count on them allowing people who live in the USA to play numbers online on offshore betting sites or any other sites.

                Individual state lottery's don't want their revenue going anywhere else but in their home states.

                Big John says. You don't hit the number. The number hits you!!!!

                               I'm not Big John, I'm Four4me, Big John's a friend.
                  Avatar
                  NASHVILLE, TENN
                  United States
                  Member #33372
                  February 20, 2006
                  1044 Posts
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                  Posted: August 8, 2010, 1:10 pm - IP Logged

                  I hate to nit-pick (not really but it sounds good) but the article said this law has gone deeper into the process than any other gambling law.  Did not the law prohibiting online gambling go a bit further?  Like all the way to the President's desk?

                    Todd's avatar - Cylon 2.gif
                    Chief Bottle Washer
                    New Jersey
                    United States
                    Member #1
                    May 31, 2000
                    23275 Posts
                    Online
                    Posted: August 8, 2010, 1:27 pm - IP Logged

                    I hate to nit-pick (not really but it sounds good) but the article said this law has gone deeper into the process than any other gambling law.  Did not the law prohibiting online gambling go a bit further?  Like all the way to the President's desk?

                    That was not a law either legalizing online gaming or even making it illegal.  It was a law that prohibits any kind of banking transaction for financing online gaming.  There has never been a USA law ever passed in any way affecting online gaming directly.

                    The feds say that the Wire Act prohibits online gambling, but I personally think that's a big stretch.  I think they know it's a stretch, because they have never attempted any kind of law enforcement for anything except sports betting online.  The only thing that affected most online gaming (like poker, etc.) was the bill I first mentioned, which affects financing of online gaming, not gaming itself.

                     

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                      Avatar
                      north carolina/virginia
                      United States
                      Member #2097
                      August 17, 2003
                      126 Posts
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                      Posted: August 8, 2010, 4:46 pm - IP Logged

                      North Carolina recently banned internet "sweepstakes", do anyone have an idea of what the ramifications would be for North Carolina if this new bill (HR2267) is passed?  Seem like NC jumped the gun with banning these internet sweepstakes.


                        United States
                        Member #81843
                        October 31, 2009
                        856 Posts
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                        Posted: August 8, 2010, 5:35 pm - IP Logged

                        This is a good thing especially the money part and consumer protection. No doubt the Debit card will be used by the consumer so the funds gambled are guaranteed to the ‘house’. Bad thing is if someone gets into that debit account and drains it, there is little one can do, in fact there is nothing you can do. If someone has the key to your piggy, it’s all over. The more protection there is for the consumer, the better the whole thing is. 

                        Get the card’s info and a card can be duplicated and drained. The pin number is on the magnetic strip. Credit cards too.

                        I’ll tell you what, if someone had a site with live drawings you could watch it would be a winner for player confidence. They would disclose all the information on the quality assurance that each ball does not have a bias. That site with a live feed on the internet would way oversell the computerized draws. Any overhead to do live draws would be money well spent.

                        The vacuum left by the states getting away from live draws and balls will make a live draw Keno or Lotto, P3, P4, P5 a real industry. If the states are smart, they would jump the gun and deliver what will be their downfall in lost revenues if they do not. I would imagine this is a double edged sword for the states who would want to be ready for online and they have to choose wisely or lose big.

                        I myself would not participate in on-line computerized drawings. No way! I can get computerized drawings right now and I don’t trust them one bit.

                        DD

                          Avatar
                          north carolina/virginia
                          United States
                          Member #2097
                          August 17, 2003
                          126 Posts
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                          Posted: August 8, 2010, 5:59 pm - IP Logged

                          Just read all the amendments to the bill and here is one that is important to me,

                          "10. An amendment (No. 14) clarifying that state lotteries aren’t part of the scope of that which is covered by H.R. 2267."