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**wbvs** · July 24, 2010, 07:36 PM

Barney frank's Bill on fast track

Barney Frank's Bill on Fast Track

By: Adam Richards, Saturday July 24th 2010
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Barney Frank's bill, HR 2267, was heard by the House Financial Services Committee on Wednesday July 21. Thereafter the online gaming industry was divided into two groups. The optimists in the industry believed that the bill would be scheduled for a mark up and vote sometime in August 2010. The pessimists believed that the mark up on HR 2267 would happen only after the mid term elections in November. As it happened, both predictions have been proved incorrect.
On Friday July 23, the House Financial Services Committee notified that HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, will be marked-up on Tuesday, July 27. The announcement read "House Financial Services Committee Chairman Barney Frank today announced the committee meet in open session on Tuesday, July 27, 2010, (and subsequent days if necessary) at 10 a.m. in room 2128 Rayburn House Office Building to consider the following measures: …". In all seven bills have been scheduled for mark up and that is the reason for meeting on subsequent days if necessary. However HR 2267 is third on the list and it should be settled on Tuesday itself.
The Safe and Secure Internet Gambling Initiative spokesman Michael Waxman pointed out the rationale for this quick decision. He said that Chairman Barney Frank wanted to get this bill advanced before Congress breaks for summer vacations. He added, "Most importantly, the mark up shows a commitment by Chairman Frank to move forward and his colleagues to address this issue." This is the first set of mark ups to be placed before the Committee since May 2010. Clearly the passing of the Finance Bill earlier this month has cleared the decks for other legislations to be moved ahead.
Earlier in the July 21 hearing poker professional Annie Duke put forward a powerful statement on why online gambling should be legalized and regulated in the United States. The most important aspect of HR 2267 is that it corrects the violation of individual freedom that was imposed by the UIGEA. She argued that this freedom for adult Americans to gamble online from the privacy of their homes was not coming at the cost of minor children who would be tempted to gamble or at the cost of pathological gamblers who would lead themselves and their families to ruin. Technology and institutions were available to ensure that the vulnerable sections of society were protected. In fact this protection would be stronger if online gambling were regulated by the government. Annie Duke also pointed out that Americans are gambling online despite the UIGEA. They would much rather gamble at sites licensed in the United States that operate under United States laws. This would ensure greater adherence to social responsibility and give greater confidence to online players.

**wbvs** · July 28, 2010, 07:22 PM

online gambling Bill pass

House Panel Passes Measure to Legalize Some Internet Gambling

By Catherine Dodge - document.write(dateFormat(new Date(1280352989000),"mmm d, yyyy h:MM TT Z"));Jul 28, 2010 5:36 PM EDT Wed Jul 28 21:36:29 UTC 2010

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Representative Barney Frank, a Democrat from Massachusetts and House Financial Services Committee Chairman. Photographer: Andrew Harrer/Bloomberg

A House committee passed legislation today that would legalize some Internet gambling, allowing U.S. residents to place online bets with companies licensed by the Treasury Department.
The measure, sponsored by Representative Barney Frank, chairman of the House Financial Services Committee, would roll back a law designed to block such wagers. That four-year-old law, which took effect in June, bars banks from processing payments to offshore gambling websites.
“My primary goal is Americans ought to be free to do what they wish without this kind of intrusion,” said Frank, a Massachusetts Democrat whose committee passed the legislation 41-22, with one lawmaker voting “present.”
“The intrusive regulation is a problem for the financial institutions,” Frank said.
Frank and other proponents, such as the Poker Players Alliance, say licensing and regulating online gambling will protect consumers who are placing a growing number of bets with offshore operators.
A separate measure that depends on House passage of Frank’s plan would impose taxes on online poker and other Internet gambling, bringing the federal government as much as $42 billion over 10 years, according to a congressional analysis.
“This is money sitting on the table,” Michael Waxman, a spokesman for the Washington-based Safe and Secure Internet Gambling Initiative, said in an interview. The group represents financial services companies such as U.K.-based payment processor UC Group.
Bill’s Foes
Opponents, such as Representative Spencer Bachus, the top Republican on the Financial Services Committee, say legalizing such betting would harm society and that Congress has more pressing issues to tackle.
Bachus, of Alabama, has said the measure would “fleece” Americans by removing restrictions on online gambling and exposing them to “unwise and harmful financial choices.”
“With this bill, in one broad stroke, we will allow every child in America to gamble on their home computer or in their dorm room,” Bachus said.
Bachus says the revenue estimates for the proposed taxes on gambling are bloated because they assume all states would participate.
Amendments
The committee passed amendments to prohibit operators that have violated U.S. laws from getting licenses and to ensure betting on sports such as football isn’t allowed. The panel also approved amendments to help prevent minors from gambling online and prohibit advertising that targets youth.
Another amendment prohibits using credit cards to make bets. Gamblers could use debit cards or prepaid accounts.
“I have opposed this bill for years, but I am slowly changing, said Representative Brad Sherman, a California Democrat. ‘‘The best reason for this bill is the prospect for revenue.’’
With both Democrats and Republicans supporting the bill in today’s committee vote, the bipartisan backing adds momentum to the legislation, said John Pappas, executive director of the Poker Players Alliance. The focus now shifts to the legislation to tax the betting, which is before the House Ways and Means Committee, he said.
Senate Measure
Senator Robert Menendez, a New Jersey Democrat, introduced a bill in the Senate last year that would legalize fewer forms of gambling, including poker. The House legislation ‘‘may be a little too broad for the Senate to tackle,’’ said Pappas.
The U.S. offshore Internet gambling market is expected to climb to $5.7 billion in 2010 from $5.4 billion last year, according to U.K.-based H2 Gambling Capital, which supplies data on the industry.
If the U.S. legalizes the gambling, the market could grow to $24 billion in five years, according to H2. That excludes most sports betting, which wouldn’t be allowed under House proposals.
The global market now is about $30 billion.
The biggest offshore gambling sites for U.S. players include PokerStars, based in Isle of Man, and Full Tilt Poker, based in Ireland, according to H2.
Critics of the 2006 law designed to bar the wagers say it makes no distinction between legal and illegal online wagering. Some states allow online betting on horse and dog racing, for example.
Safeguards Required
Under Frank’s proposal, licensed gambling companies would be required to have safeguards to protect against underage and compulsive gambling and to prevent people from placing bets online in states that prohibit it. Such oversight is designed to protect consumers against fraud, identity theft and other crimes.
The bill to tax online gambling is sponsored by Representative Jim McDermott, a Washington Democrat and member of the tax-writing Ways and Means Committee.
McDermott’s proposal would require Internet gambling operators to pay a 2 percent tax to the federal government on betting deposits and a 6 percent tax to states. The federal treasury also would collect taxes on gaming-company profits, and bettors would pay taxes on winnings.
To contact the reporter on this story: Catherine Dodge in Washington at cdodge1@bloomberg.net

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today was a hearing on internet gambling bill in US Congress

today was a hearing on internet gambling bill in US Congress

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