UPDATE SEPT. 17: HOUSE COMMITTEE APPROVES HR 6870

Cong. Barney Frank’s new bill that would erase regulations of the UIGEA — except pertaining to online sports betting — passed its House Financial Services Committee markup hearing Tuesday.

The 30-19 vote means that the bill, HR 6870, moves forward to the full House for a possible vote. Ultimate passage of the measure through Congress would be a victory for online poker by separating it from UIGEA provisions calling for penalties on banking institutions that handle online gambling transactions.

Jay Lakin, co-owner and vice president of PokerSourceOnline.com, a leading online poker affiliate, cheered the vote.

“It’s great to see that Barney Frank can introduce a bill on a Thursday and have it moved swiftly through markup,” Lakin said.

“It’s clear to me that he (Cong. Frank) is dedicated to protecting online poker players in the United States and, in the hearing, stated that he wants to overturn the UIGEA regardless of what happens with HR 6870. I look forward to seeing the bill on the House floor in the near future,” Lakin said.

Here’s a full story by Dan Cypra…

HERE’S REACTION FROM THE PPA:

The PPA is pleased that the House Financial Services Committee today recognized the need to provide necessary clarification to what constitutes ‘unlawful Internet gambling’ under the Unlawful Internet Gambling Enforcement Act (UIGEA) by passing H.R. 6870.

This bipartisan compromise bill will rightfully advance the UIGEA to become immediately effective for such internet gambling that is clearly unlawful, namely sports betting. The legislation also appropriately requires a formal rulemaking, overseen by an administrative law judge, to provide the clarification requested by the Department of Treasury and the Federal Reserve, among others, as to the definition of ‘unlawful Internet gambling.’

Even those who oppose internet gambling should applaud the passage of this legislation as it provides the most realistic opportunity to block truly unlawful internet gambling transactions.

The PPA congratulates the Republicans and Democrats on the House Financial Services Committee on reaching this strong compromise bill, and we look forward to enactment of this sound public policy during this legislative session.

We thank Chairman Frank for his continued leadership on this important issue of protecting individual rights and personal responsibility.

EARLIER STORY: POSTED SEPT. 12 ON POKER NEWS DAILY; WRITTEN BY DAN CYPRA

Barney Frank Internet Gambling Bill to be Marked Up Tuesday

Poker News Daily has learned that HR 6870, which was proposed by Congressman Barney Frank (D-Mass.) on Thursday, is scheduled to be marked up in the House Financial Services Committee on Tuesday.

The measure is one of five that will be considered at 1 p.m. ET in room 2128 of the Rayburn House Office Building in Washington, D.C.

The bill, entitled the “Payment Systems Protection Act of 2008,” prohibits the U.S. Treasury and Federal Reserve from enacting any regulation of the Unlawful Internet Gambling Enforcement Act (UIGEA) except “to the extent as any such regulation pertains to wagering of the type that is prohibited under chapter 178 of title 28, United States Code (relating to professional and amateur sports protection).”

In other words, all regulations would be struck down immediately, except for those that concern online sports betting.

After suspension of the current regulations, HR 6870 then calls for an “administrative law judge” to work with the Treasury and Federal Reserve to “develop and implement regulations.” The bill mandates that the new guidelines should “include a definition of the term ‘unlawful Internet gambling’ after conducting a full economic impact study of the proposed regulations.”

The bill was officially introduced on September 11th and has one co-sponsor, Republican Congressman from New York Peter King.

Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman told Poker News Daily:

“There seems to be a general consensus that a solution is needed now. I believe that’s the reason why Congressman Frank is continuing to push this issue. He has a sense of what the financial services sector can bear. He wants to make sure that they are not charged with enforcing the UIGEA on their own.”

Frank has been the driving force behind legalizing internet gambling in the United States. In April, he introduced HR 5767, the first version of the Payments System Protection Act, in coordination with Congressman Ron Paul (R-Tex.). The bill was ultimately defeated in Committee along with an amendment proposed by King.

Frank also introduced HR 2046, the Internet Gambling Regulation and Enforcement Act, which sets up a complete framework for licensing and regulating internet gambling in the United States. The bill was introduced in 2007 in response to the passage of the UIGEA one year earlier.

Congressman Pete Sessions (R-Tex.) is the latest lawmaker besides Frank to introduce legislation that may be beneficial to online poker. Sessions’ HR 6663 interprets the UIGEA to mean that only online sportsbooks are against federal law. The bill has garnered four co-sponsors, but has drawn the disapproval of the Poker Players Alliance, the online poker industry’s major lobbying group. The bill has language in it which implies that the legal status of online poker in the United States is cloudy.

HR 6870 is scheduled to be marked up in Committee on Tuesday. During the mark-up process, amendments can be added as needed. If approved by Committee, HR 6870 may be scheduled for a vote on the floor of the U.S. House of Representatives. Congress has just a few weeks remaining in session before adjournment for general elections.

Posted by Russ Scott on Saturday, September 13th, 2008 at 2:24 am.