US Regulation
Busy Legislators Work Against UIGEA Implementation
By Jim Quinn
Mar 6, 2008, 16:30

The last several weeks have been quite busy for political challengers of the Unlawful Internet Gambling Enforcement Act (UIGEA) passed late in 2006. A powerful member of the US House of Representatives signed on as a co-sponsor of Representative Barney Frank’s Internet Gambling Regulation and Enforcement Act, an updated bill to regulate and tax Internet Gambling was introduced  and two republicans criticized the Treasury Department and the Federal Reserve System as they attempt to implement the UIGEA.

The Regulation Bill (H.R.2046) introduced by representative Barney Frank (D-MA 4th) provides for the licensing of Internet gambling facilities by the Director of the Financial Crimes Enforcement Network. HR 2046 gained huge support at the end of February with the co-sponsorship nod from Representative George Miller (D-CA 7th). Rep. Miller is a 17th-term Democrat from California and is both the chair of the Education and Labor Committee and the co-chair of the House Dem. Steering and Policy Committee. Rep. Miller is the first co-sponsor to add his support for this legislation in 2008. He joins eight other representatives from California who have added their support to this bill. This influential leader in the house brings the total number of co-sponsors to Rep. Frank’s bill to 47. We have included a list of all of all co-sponsors below. 

Last June, Representative James McDermott (D-WA 7th) introduced H.R. 2607, designed to amend the Internal Revenue code to regulate Internet Gambling. He only received one co-sponsor for his bill and thus has reintroduced HR 5223 - Internet Gambling Regulation and Tax Enforcement Act of 2008. Perhaps the fancy name that this version has will garnish more support. Again, this is a companion bill to Rep. Barney Frank's bill to license and regulate Internet gambling. This bill establishes the process to collect some of the gambling revenue online You can read the full text of this bill here.

Without wider appeal and support for Barney Frank's bill this one too, is destined to garnish very little support. The interesting political factor is that very few people care about Internet gambling, especially in Congress.  These two bills  to change the law have done a great service in bringing the issue to the attention of politicians and mainstream America. But with so many problems in the US, it is easier for lawmakers to continue the status quo.

Senators John Sununu (R-NH) and Pete Domenici (R-NM) recently sent a letter to the U.S. Treasury Department and the Federal Reserve System criticizing the Unlawful Internet Gambling Enforcement Act. To view the recently revealed letter, click here. The letter emphasizes that this issue has received "extensive public comments". The correspondence also states that "This issue is particularly important, as most federal and state gambling laws predate the Internet". However, this is not a piece that triumphs the cause of freedoms online. Instead, this letter urges immediate implementation for activities for which there is settled federal law, while giving the regulators time to clear up "sufficient ambiguity" in the proposed regulations.

We have seen recent reports looking at all of these political moves as coming to the aid of online gamblers. Of course. any support for Rep. Frank's bill  is welcome and backing from long standing, well respected politicians gives a huge boost toward Rep Frank's bill moving forward in the House. McDermott's second try at a companion bill is well guided, but he certainly will need more support this time around. The fact that this bill hinges on Frank's only exacerbates his efforts. It is great to see the Internet Gambling issue and subsequent legislation being brought into the limelight.

However, you will  not see Sununu or Domenici fighting for gambling rights. They are big on defense, energy and enjoy healthy Republican constituencies. These two dyed-in-the wool Republicans are simply shilling for the banking industry. Several  references to the 'burden' on the financial institutions make it quite clear that this letter was written to ease pressure on banks. 

One glaring note for sportsbettors is the inclusion of Professional and Amateur Sports Protection Act as an example of a type of transaction that should be blocked, immediately! Are these legislators so misguided that they think this would not cause even more ambiguity? What sports bettor would not immediately become a poker ace so that he could deposit at the poker site and transfer it to a sportsbook......Hello..

Perhaps this is still good for the online gamblers cause. With the confusion that the regulators are beginning to see and continued support and pressure to repeal the UIGEA there may be a light at the end of the tunnel. We need to continue efforts to support several  bills that are currently being considered. These include:

We would also like to congratulate you the betting public. We had posted several articles and links so that you could get involved with the debate on proposed UIGEA regulations. As evidenced in the letter from the two senators , your "extensive public comments" had an impact. Visit our FREE advocacy area to get up-to-date information on these bills and the representatives that support them. Vote for the representatives listed above and contact any that are on the chopping block this fall and let them know of your opinions on the UIGEA and Internet Gambling. Get involved here.

2009 OSGA, LLC