About 18 months ago, the US Justice Department changed the rules concerning the Wire Act of 1961. In essence, these changes made it easier for online gaming to take place in many states. Now, it appears that many of those states that took advantage of the new changes are now facing problems with crimes such as money laundering and fraud. Because of these problems, Congress is being asked to come up with some solutions that can be used to combat those who are breaking the law, some of whom may be terrorists groups.
One of the major proponents to fixing the problems is the Fraternal Order of Police. According to their president, Chuck Canterbury, Congress needs to establish or at least update a national legal standard that can be used for online gambling. He contends that law enforcement is not able to keep with state and local crimes that are taking place. He also said that it will be years before law enforcement has the technology it needs to combat money laundering that is taking place on the state level. This is especially true when those activities occur across borders. He, and others, believe that federal action is needed.
Because much of the money laundering takes place between a state and a foreign country, the Caribbean for instance, federal laws are needed. All of this came out during a hearing that took place before the Senate’s consumer protection subcommittee. This was the first hearing on this subject this session. During the hearing, Geoff Freeman who is the current American Gaming Association President, remarked that the federal government will need to act as soon as possible. In addition, he said that Congress should at least institute minimum regulatory standards in order to help protect online gamers as well as consumers. These standards should include provisions that would exclude those who are known to be acting illegally or in bad faith. Native American tribes should also be provided with some type of regulatory framework to combat the problems that they are experiencing.
The hearing also served as to reenergize interest in establishing a federal record on the reasons Congress should begin work on new regulations for online gambling and gaming. The hearing allowed those who are interested in the subject to understand that there is a problem and that solutions are needed to fix these problems.
In addition, Sen. Harry Reid, D-Nev., is currently in Senate discussions concerning online gambling legislation. These discussions have been sought by many of the most prominent Las Vegas casino entities and corporations. The overall goal of the discussions is to come up with a national online poker market similar to that which is found in the state of Nevada.
In the US House, two bills have already been introduced. A bill brought by Rep. Joe Barton of Texas, would legalize online poker. The other bill brought by Rep. Peter King of New York would allow for more types of online games. The US Justice Department has already revised the legal opinion of the Wire Act of 1961 Wire Act which it now says only applies to sports betting.