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Internet Gambling Prohibition Could Be Repealed
US Congress May Decriminalize Internet Gambling
March 15, 2007
Congressman Barney Frank (D-MA), Chair of the House Financial Services Committee, has announced that he is considering a new bill that would repeal the internet gambling ban that was passed last year. As the leading financial services expert in the US House of Representatives, Frank sees the economic potential of legalizing and regulating internet gambling.
At the end of September 2006, one of the last pieces of legislation to be voted on before Congress adjourned for a break was the Security and Accountability For Every (SAFE) Port Act, also referred to as the Port Security Act of 2006. Falling under the heading of Homeland Security, this $400 Million bill was focused on keeping America's seaports safe from nuclear, biological and chemical weapons.
The bill was so sure of being passed that Congress had issued a blanket rejection of any special interest tack-ons being applied to the bill. This made it that much more curious that an extra bill found itself added onto the end of the SAFE Port Act just prior to the vote. It was particularly surprising because the additional bill dealt with the topic of internet gambling, which had absolutely nothing to do with the safety of America's ports.
The internet gambling bill, titled as the Unlawful Internet Gambling Enforcement Act (UIGEA), was applied to the port security bill by then-Senate Majority Leader Bill Frist (R-TN) and Senator Jon Kyl (R-AZ). Not only had Kyl tried and failed to pass his internet gambling prohibition law for an entire decade, but the duo had previously tried the same deceptive tactic of hiding the bill in legislation that was guaranteed to pass.
Kyl and Frist had previously attempted to add UIGEA to a military spending bill that governed the budget for US troops fighting the war on terror. Critics stated that the gambling bill had no place on the Defense Department legislation and forced it's removal. Critics also objected to it being included in the Port Security Act, but it was added at the last minute before any serious debate could be mustered.
As President Bush signed the internet gambling bill into law, the online gambling world was shaken abruptly. Investors lost billions of dollars on the London Stock Exchange, as internet gambling stocks for Party Gaming, 888 and Sportingbet plummeted. Thousands lost jobs in countries around the world, typically in underprivileged countries where losing your job means that your family starves. Worst of all, many charged that the nation had been exposed as a corrupt location where it is acceptable to use trickery and deception to pass a bill that is unable to gain approval based on it's own merits.
All of that could be changed, as Barney Frank, a Democrat from Massachusetts, says that he is considering introducing a bill that would repeal the prohibition on internet gambling. According to the UK's Financial Times newspaper, Frank called internet gambling law the "stupidest ever passed".
"I think it's preposterous... maybe we can make some money off it,' he added.
A spokesman for Frank's office cautioned that this is still at a very early stage, and that the Chairman of the House Financial Services Committee is simply considering how the unjust internet gambling law can be repealed.
"There's no draft, no text _ this is very much still in the thinking stage," said spokesman Steve Adamske.
Even though there is not a draft yet, just the mention that the law could one day be repealed brought cheers of joy from both players and casino operators who are involved with the internet gambling industry. These internet gambling proponents have stated for years that prohibition will only force the internet gambling industry into the black market, and that a responsible government would license, regulate and tax internet gambling.
Industry experts predict that it could take much more than a strong push from internet gambling industry supporters to enact a change in existing legislation.
Anthony Cabot, a Las Vegas attorney who specializes in gambling law, said, "It's very difficult to get legislators to support something that could be perceived as pro-gambling, particularly at the federal level."
While the change would not be easy, it would not be the first revolutionary shake-up Frank has made since becoming the Chair of the Financial Services Committee. Since taking the office in January 2006, Frank passed a controversial law to prevent the licensing of commercially owned banks, preventing companies like Wal-Mart or Sears from operating in-house banks. Frank also passed a law allowing shareholders to determine the pay of corporate officers.
While the future is uncertain and a long road is ahead of the Congressman on the issue of internet gambling, the one sure bet is that he has many strong supporters across the country. The Poker Players Alliance, who strongly endorses having the internet gambling law repealed or amended, consists of 160,000 members who will surely throw their support in favor of Frank's bill, should it be drafted.
Global Gaming News
Edited 1 times. Last edit at 03/15/07 08:54AM by JerryG.
