Barton Measure Would Legalize Online Poker, Offer Opt-Out System For State Agencies
Rep. Joe Barton, R-Texas, introduced online poker legislation that proposes to create an interstate licensing program for websites and allow states to opt out of the program. Barton presented the measure Friday with Republican Reps. John Campbell, Calif., and Pete King, N.Y., and Democratic Reps. Shelley Berkley, Nev., Steve Cohen, Tenn., and Linda Sanchez, Calif. The bill, HR-2366, is rooted in consumer protection, Barton said. “Although it’s legal to play for money, it’s illegal to process the transactions that allow players to collect their earnings,” he said. “We want to have an iron-clad system to make sure that those who play for money are playing in an honest, fair system where they can reap the benefits of their winnings."
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Online poker legalization needs to move forward, Campbell said in a statement. Americans want to gamble on the Internet and “policymakers need to provide both the freedom to do so and ensure appropriate consumer protections are in place,” he said. “Regulating online gaming and making certain that these sites are operating legally in America will also create economic growth through generated tax revenue and the possibility of attracting foreign players to U.S. sites.” Campbell introduced his bill on the topic, HR-1176, in March. It aims to create a state, federal and tribal licensing regime to issue licenses to operators who ensure consumer protections (WID March 21 p5).
Barton’s bill is well-crafted, Cohen said in a statement. “For the first time, we would create a legal, licensing regime that creates proper oversight and strict regulation but also allows Americans the freedom to play one of the most popular games in the country,” he said. “It also respects the rights of states that don’t wish to participate."
The bill calls for a regime that authorizes the Commerce Department to review and qualify state agencies to issue licenses and conduct oversight of state agencies. The department’s duties include “investigating and taking appropriate remedial action with respect to any qualified State agency.” The Commerce Department also would approve tribal gaming commissions to issue licenses, under the bill. States may opt out of legalizing poker by notifying the Commerce Department through legislative means. The standards laid out in the bill would direct licensees to “have effective means to prevent minors from playing,” ensure that games are fair, prevent money-laundering and “identify and help treat problem gamblers."
The measure was supported by some entities in the gambling sector. The American Gaming Association and the Poker Players Alliance are pleased with the effort, they said. AGA is pleased that Barton “wants to protect American consumers and understands the need for regulating online poker.” “The millions of Americans who are playing poker online deserve to know they are playing safely with law-abiding operators, but strong enforcement of illegal operators and unambiguous U.S. laws governing online gambling are equally vital,” the group said. The bill “aims to bring clarity to the law, while implementing tough consumer protections and providing a mechanism for the Federal and state governments to collect billions of dollars in revenue,” PPA Chairman Alfonse D'Amato said.
Republican support for legalization has grown from last Congress, said John Pappas, PPA executive director. “I think there’s been a growing consensus in this Congress that the status quo is untenable,” he said in an interview. More legislators realize that “regulation of this industry makes a whole lot more sense than allowing it to continue in an unregulated fashion,” he said.
MGM Resorts International also agreed with the effort. Final congressional action should clearly strengthen enforcement capabilities “to protect against illegal off-shore operators, provide consistent minimum standards for licensure and regulatory controls … and ensure that only experienced regulators oversee any operations,” a spokesman said. “Finally, for regulations to have teeth, licensees should be required to have a high-level of assets at risk should they not uphold the highest level of integrity and probity in their operations."
A federal bill could serve the interests of large gaming industries in Nevada and hurt California, said Patrick Dorinson, Internet gaming consultant and former spokesman for the California Online Poker Association. Two bills in California, SB 40 and SB 45, could create an intrastate system for online poker, he said. “I would hope it [Barton’s bill] would be a motivator for California to get something done this session to protect itself and its interests."
The bill’s narrow focus on Internet poker makes it stronger than similar bills introduced last year, Pappas said. Authorizing the “regulation of this activity, a non-house banked game of skill, would be much more palatable than casino games of chance over the Internet,” he said. “Further, the Barton bill will strengthen the deficiencies of the UIGEA (Unlawful Internet Gambling Enforcement Act) so that there can be effective enforcement against unlicensed Internet gaming.”