Washington: The Mood Turns toward Regulation

Less than eight months after the enactment of a federal law prohibiting the funding of most types of Internet gambling in the United States, an industry in mourning has reason for optimism: With the introduction of two I-gaming-related bills Thursday in the House of Representatives, federal legislators are now considering four pieces of legislation that could ultimately lead to the regulation of some or all forms remote gambling.

The bills are as follows:

1. The Internet Gambling Regulation and Enforcement Act (H.R. 2046)
Primary Sponsor: Rep. Barney Frank, D-Mass

The Bill - Introduced April 26, 2007, The Internet Gambling Regulation & Enforcement Act would establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses authorizing them to accept bets and wagers from individuals in the United States, on the condition that they maintain effective protections against underage gambling, compulsive gambling, money laundering and fraud, and enforce prohibitions or restrictions on types of gambling prohibited by states, Indian tribes and sporting leagues.

View a copy of H.R. 2046.

The Latest - The U.S. House Financial Services Committee heard testimony on Friday pertaining to H.R. 2046. Advocates of the legislation argued that the UIGEA is an infringement on civil liberties; that regulating Internet gambling fixes the problems cited by proponents of prohibition as reasons to ban the activity; that the government should focus its enforcement efforts on greater dangers than Internet gambling; and that the prohibition bill was wrongfully snuck through the legislature as a subset of a larger bill. Opponents argued that Internet gambling leads to great social harm as a result of gambling addition and that technology for regulating Internet gambling--namely geo-location and age verification systems--is inadequate.

Read about the latest activity related to H.R. 2046. (Posted June 9, 2007)

2. The Internet Gambling Study Act (H.R. 2140)
Primary Sponsor: Rep. Shelley Berkley, D-Nev.

The Bill - Introduced May 3, 2007, the Internet Gambling Study Act proposes a one-year study on Internet gambling to be conducted by the National Academy of Sciences. The bill would, among other things, assess the impact of the Unlawful Internet Gambling Enforcement Act (UIGEA) and analyze the recent rulings on Internet gambling by the World Trade Organization. Berkley co-sponsored a similar bill submitted by Rep. Jon Porter, R-Nev., on May 24, 2006; however, the bill died in session.

Read about the latest activity related to H.R. 2140. (Posted May 4, 2007)

3. The Internet Gambling Regulation and Tax Enforcement Act. (H.R. 2607)
Primary Sponsor: Rep. Jim McDermott, D-Wash.

The Bill - Introduced June 7, The Internet Gambling Regulation and Tax Enforcement Act is the tax counterpart to H.R. 2046. It would create a 2 percent tax on deposits, with half earmarked to federal government and half earmarked to the state government.

Read about the latest activity related to H.R. 2607. (Posted June 9, 2007)

4. The Skill Game Protection Act (H.R. 2610)
Primary Sponsor: Rep. Robert Wexler (D-FL)

The Bill - Introduced June 7, 2007, The Skill Game Protection Act bill would exempt skill games like poker, mahjong, bridge and backgammon from the UIGEA. Such an exemption would theoretically allow for the return of online poker providers, exiled after the legislation was enacted in October, to the U.S. marketplace. The legislation, according to Wexler spokesman Josh Rogin, "allows Americans to play poker online as they should have every right to do."

Read about the latest activity related to H.R. 2610. (Posted June 7, 2007)