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September 1, 2011

New Coalition In Support Of Legalizing Online Poker

Filed under: Casino — Tags: , , — OCE News @ 12:00 am

A new support group has now joined the campaign to legalize online poker: FairPlay USA. It was set up with the aim to persuade the Congress that a regulatory structure should be created, which will allow U.S. citizens to bet legally on online poker games. The group also seeks more clarification on what is legal and what is not for players.

The new coalition, which is based in Washington DC, has managed to attract a number of important advisers, including Tom Ridge who was a former Pennsylvania Governor as well as Homeland Security chief.

The Petition

Marisa McNee, FairPlay’s Executive Director, said “We are not doing lobbying of any kind; we are doing outreach trying to educate the public and Congress on the need to reform federal Internet gambling laws.”

The petition featured on the group’s website asks for issues concerning offshore Internet gambling to be looked into, establishment of an appropriate regulatory system, and better law enforcement tools to gain control over illegal sites.

Past Attempts

A Republican-sponsored bill, known as the Unlawful Internet Gambling Act, was passed by the Congress in 2006 in an attempt to take control over U.S. Internet gambling. It did so by preventing payment processors, for example, PayPal and credit card companies, from dealing with payments from online bets. However, it appears that this has had little impact on the problem. It also puts American citizens in the danger of fraud, as most gambling sites are based abroad.

A federal crackdown ensued on 15th April in which indictments were released against a number of online companies, including Absolute Poker, PokerStars and FullTilt Poker. On 24th May, 10 poker sites were closed down and 11 bank accounts seized in Baltimore.

However, despite this, online poker games are still readily available for American gamblers. PokerScout.com keeps track of 49 of the top poker sites and reported that nine of the websites allow U.S. citizens to sign up.

The Barton Bill

A bill has been introduced by U.S. Republican Joe Barton. The bill calls for the legalization of online gambling, but only in states that allow it. It also encourages the U.S. Department of Commerce to put together licensing and agencies, which would offer consumer protection.

McNee explained that FairPlay does not have a position concerning the Barton bill. It supports the legalization of online poker, but has not considered other types of online gaming.

Current Support

Although McNee was unwilling to provide information on donations from Las Vegas gaming companies, she did state that FairPlay had received funding from Caesars Entertainment Corp and MGM Resorts.

Senior Vice President of Public Affairs at MGM Resorts, Alan Feldman, said, “There is a need for advocates from varied points of view. We are certainly supportive of their efforts to bring in law enforcement and Internet security experts.”

He added that MGM Resorts would prefer a federal legislation: “A state-by-state solution is chock-full of problems. It’s not what is needed now. A state-by-state solution calls out more for a federal response to the issue.”

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