Online Gambling Markup Scheduled Third Today In House Finance Committee

Representative Barney Frank's proposed HR 2267, Internet Gambling Regulation, Consumer Protection, and Enforcement Act, will go before the House Finance Committee today in the markup phase of the process to regulate Internet gambling in the US.

Last week, Frank held a hearing on the bill, and several speakers gave both positive and negative thoughts on the legislation. The bill is listed as the third markup of the day out of a lengthy seven bills that will be marked up on Tuesday. One of the major issues to be determined is whether or not to license existing online poker rooms.

PokerStars and Full Tilt Poker are popular among US online players. The two sites have been a major source of stress for the US government in their quest to stop Internet gambling. Several lawmakers have stated that they would like these sites forbidden from gaining licenses if US laws are changed.

"These entities should not be invited to play a role where they are going to have to act as policemen," said Representative Brad Sherman. "We don't want former criminals deputized as cops." Sherman is a Democrat from California, a state that has been discussing online poker regulations themselves in recent months.

Nevada interests have weighed in on potential online gambling regulations, but the opinions are split. Steve Wynn, one of the biggest gaming moguls in the country, and owner of Wynn Resorts, is strongly opposed to Internet gambling regulations.

Harrah's Entertainment, on the other hand, has already set up offices in preparations of a possible law change. Harrah's has launched and online casino that does not currently accept US customers. If the laws change, Harrah's may be one of the company's that the US government looks to license.

Rep. Frank has received more support this year than in the past when he has attempted to overturn the Unlawful Internet Gambling Enforcement Act that was created in 2006, but that went into effect in June. Frank currently has sixty-nine co-sponsors for his bill.

Financial institutions were represented last week at the hearing on the bill. The consensus among many banks is that it would take too many resources to block all online gambling transactions. The UIGEA places the burden on financial institutions to police the Internet gambling transactions.

July 27, 2010
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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