Internet Gambling: Regulations Completed, Issued
On October 13, 2006, Congress passed legislation to stop illegal Internet gambling in the U.S [Article VIII of the SAFE Port Act, known as the Unlawful Internet Gambling Enforcement Act or UIGEA]. Regulations were implemented on November 12, 2008. We must keep families safe from online predators, so urge your Congressional Leaders to oppose anyattempts to repeal the UIGEA and legalize Internet gambling.
The Unlawful Internet Gambling Enforcement Act (UIGEA) was passed by Congress and signed by President Bush in October of 2006. The federal Treasury Department and the Board of Governors of the Federal Reserve were commissioned with the task of drafting regulations that upheld the intentions of UIGEA. Two years later, on November 12, 2008, the Treasury and Federal Reserve finally completed and implemented the UIGEA regulations. While the Treasury and Federal Reserve completed UIGEA regulations, Rep. Barney Frank, congressional cronies and his foreign allies - the Poker Players Alliance - tried to repeal UIGEA, stop completion of the regulations or otherwise derail UIGEA with eight separate bills. But UIGEA and the regulation-drafting process remained steadfast until completion. UIGEA Opposition: 1) HR 2046 - Frank - Internet Gambling Regulation and Enforcement Act of 2007 2) HR 5767 - Frank/Paul (King amendment) Payments System Protection Act of 2008 3) HR 5523 - McDermott, D-WA - Internet Gambling Regulation and Tax Enforcement Act 4) HR 6501 - McDermott, D-WA (Larson-CT; Miller-CA) - Investing in Our Human Resources Act of 2008 5) HR 2140 - Berkley - Study Internet Gambling - Proper Response of U.S. 6) HR 2607 - McDermott - Internet Gambling Regulation and Tax Enforcement Act of 2007 7) HR 6870 – Frank (King) - Payments System Protection Act of 2008 (Passed out of
[11-18-2008]
Treasury and Federal Reserve Finally Issued UIGEA Regulations
Families can celebrate the implementation of this law and its associated regulations. But beware of Barney Frank and foreign gambling interests, as they are not likely to give up their attempts to repeal UIGEA or legalize Internet gambling.
House Committee on Financial Services, vote: 30 – 19)
8) S. 3616 – Sen. Robert Menendez (D-NJ) - Internet Skill Game Licensing and Control Act of 2008
Implementation of the UIGEA regulations now make the act effective and enable financial institutions to create systems for compliance. Effective dates (see p. 2 of final regulations):
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Final Rule issued - 12 November 2008
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Final Rule effective - 19 January 2009
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Financial Institution Compliance (one year) - 1 December 2009
Access Final Rule - UIGEA Regulations
Access H.R. 4954, SAFE Port Act of 2006 (see Title VIII for UIGEA language)
[10-8-2008 - Archive]
S. 3616 - Sen. Menendez (D-NJ) Bill To Legalize Online Gambling
Keep your powder dry for the 'lame duck' session ...
A bill to amend title 31, United States Code, to provide for the licensing of Internet skill game facilities, and for other purposes. Watch the Thomas Website for S. 3616
and future updates. Due to Congress' priorities in dealing with the national economic issues, S. 3616 could sneak up in the 'lame duck' session following the November 4th presidential elections. Be ready to call your elected officials in Congress if S. 3616 is considered or inserted into another bill. Also, be aware that Rep. Barney Frank's latest bill, H.R. 6870, could go to the House floor for consideration (see article below).
[9-19-2008 - Archive]
Dangerous Internet Bill Goes To House Floor
ALERT!!! URGENT ACTION:
Rep. Frank's bill, titled the Payments System Protection Act (H.R. 6870), passed the House Financial Services Committee by a vote of 30-19 on Tuesday, September 16, 2008. The bill will likely go to the House floor next week, so it's URGENT for citizens to contact your U.S. House Representative to request a "NO" vote against H.R. 6870. Use the CitizenLink Action Center to find and contact your Representative TODAY! Read the related CitizenLink Alert here.
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Background:
H.R. 6870 prevents the the completion of regulations for UIGEA and requires any interim regulations to block only sports betting. Additionally, it carves out numerous casino games such as poker, blackjack, Pai Gao, craps, roulette, slots, video poker, dog racing, Jai Alai, etc. The bill ultimately stalls UIGEA regulations from being completed, while attempting to remove opposition from the sports leagues.
Here is how the House Financial Services Committee voted (Ital = Republican):
Yeas (30): Frank, Kanjorski, Waters, Gutierrez, Velazquez, Watt, Ackerman, Sherman, Moore (KS), Capuano, McCarthy (NY), Baca, Lynch, Cleaver, Bean, Moore (WI), Ellison, Klein (FL), Wilson (OH), Perlmutter, Murphy (CT), Foster, Cazayoux, Pryce (OH), King (NY), Biggert, Shays, Gerlach, McCarthy (CA), and Heller.
Nays (19): Meeks (NY), Scott (GA), Bachus, Castle, Royce, Lucas, LaTourette, Jones (NC), Capito, Hensarling, Garrett, Brown-Waite, Barrett, Pearce, Davis (KY), Campbell, Putnam, Bachmann, and Roskam.
Not Voting (21): Maloney, Hinojosa, Clay, Miller, Green, Davis, Hodes, Mahoney, Donnelly, Carson, Speier, Childers, Paul, Manzullo, Miller (CA), Feeney, Neugebauer, Price (GA), McHenry, Marchant, and McCotter.
Citizens may want to remind House Republicans that the Republican/GOP Platform for 2008 continues to uphold prohibition of Internet gambling, on page 47, with the following statement:
"Internet Gambling: Millions of Americans suffer from problem or pathological gambling that can destroy families. We support the law prohibiting gambling over the Internet."
-GOP/Republican Platform 2008
The referenced "law" is the Unlawful Internet Gambling Enforcement Act of 2006 or Article VIII of the Safe Port Act. See the article below for House Financial Services Committee contact information.
Democrats need to realize that millions lose so that a few can win - and the house will always win! Too many people are homeless because gambling addiction has stolen their lives and destroyed their families.
Barney Frank made a very individualistic comment about UIGEA: "If an adult in this country, with his or her own money, wants to engage in an activity that harms no one [emphasis added], how dare we prohibit it?" While bidding to inject thousands of predatory, online casinos into millions of U.S. homes via the Internet, Rep. Frank ignores - or is oblivious to - several stubborn facts: An estimated 4 million or more pathological gamblers and another 11 million problem gamblers and their families are victims of gambling addiction [NGISC, p. 4-1]. Consider that most pathological gamblers think about or attempt suicide, and each addicted gambler negatively affects 10 to 17 other people - family, work and government [Pulitzer, et al., 1992]. Gambling affects more than just the individual, especially if he or she becomes addicted.
There may be one million people that want to gamble online (Poker Player's Alliance), but what about the 15 million or more people fighting gambling addiction and their suffering families? With more accessibility and availability to gambling, addiction increases. Rep. Frank needs to represent American families on this issue, not foreign Internet casino operators or adult special interests.
If Reps. Frank, King, Wexler, McDermott and others are willing to gamble with our families by passing laws that enable predatory adults to access our homes and children for "legalized" exploitation, then it's time to replace them with leaders of character and integrity who will create policy to defend - and not assault - families.
Recent Articles and Research of Interest:
Robert T. Wood, Robert J. Williams, " Problem gambling on the internet: implications for internet gambling policy in
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... cautions for governments to heed when crafting internet gambling policies.
Brody Mullins, "Biden's Son Quits Lobbying Business," Wall Street Journal, 12 September 2008. [Lobbyist for foreign, online gambling operator]
High Lights:
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Hunter Biden, the lobbyist son of Joe Biden, has quit the business. In a letter released today, Biden told Congress that "I no longer expect to act as a federal lobbyist." ...
- Just before his father was added to the Democratic ticket, he signed a lucrative deal to help expand Internet gaming. ...
- Hunter Biden was charged with lobbying House lawmakers on behalf of a law firm that represents online gambling magnate Russ DeLeon. Listed as one of Forbes’ richest Americans, DeLeon runs the popular online gambling site PartyGaming.com. ...
- Republicans approved legislation in 2006 to outlaw Internet gaming, but Democrats are trying to overturn the ban. ...
- According to a form filled out by Hunter Biden just a month before the Democratic convention, Biden’s firm was slated to earn $200,000 a year by lobbying for PartyGaming. ...
Mike Brunker, "Poker site cheating plot a high-stakes whodunit: $75 million claim filed against Canadian software firm with murky pedigree," MSNBC Interactive online, 18 September 2008. [Internet gambling's potential for corruption and crime]
High Lights:
- Allegations that cheaters manipulated the software powering a leading Internet poker site so they could see their opponents' hole cards have triggered a $75 million claim against a Canadian company ...
- The alleged subterfuge on UltimateBet.com — one of the 10 top poker sites — is the biggest known case of fraud targeting an Internet gambling site and its customers ...
- It is similar to a case of cheating that occurred last year on UltimateBet’s sister site, AbsolutePoker.com, but this time the thieves ran the scheme for far longer ...
- The unprecedented claim is just the latest twist in a slowly unfolding whodunit that began more than nine months ago when poker players posted comments about suspicious play on UltimateBet. ...
- "I know there are thousands of people who aren’t going to get reimbursed." ...
- Adding to the sense of mistrust is the fact that Tokwiro Enterprises apparently is owned by Joseph Norton, the former grand chief of the Kahnawake Mohawks, who helped establish the territory as North America’s only bastion of Internet gambling. ...
- The sudden sale of Excapsa’s assets for $130 million, with $120 million deferred, was prompted by President Bush’s looming signature of the so-called Safe Port Act [Article VIII contains UIGEA language], which contained a provision barring U.S. banks and other financial institutions from doing business with Internet gambling operators. ...
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Kahnawake Gaming Commission [KGC]... On July 27, the KGC announced it had asked Frank Catania, a former New Jersey state gaming regulator, to conduct "a full forensic audit/investigation" … [KGC] has licensed more than 470 gambling Web sites operated by 55 different operators. ...
"Internet bookie bwin loses German court case," Rueters, 11 September 2008. [Internet gambling operator refuses to comply with German ban on Internet gambling]
High Lights:
- Internet bookmaker bwin.com has lost a regional court case in the aftermath of Germany's crackdown on online betting
- The Cologne court rejected the suspension request [that would lift Germany's ban on Internet gambling] ... Bwin now faces fines if it does not oblige the ban ...
- Bwin confirmed the court decision but said it would continue to offer its betting and gambling services despite the ruling. It reiterated its view that Germany's ban on Internet gambling violated European Union rules and it will continue to challenge it in courts. ...
Nick Mathiason, "Gaming firms drag heels over aid for addicts," The Guardian (U.K.), 7 September 2008. [Online gambling sites cause addiction, not willing to pay or take responsibility for harm caused]
High Lights:
[9-11-2008 - Archive]
Dogged Frank Punting To Legalize Internet Gambling AGAIN!
ACTION:
Call your Representative today and urge him or her to oppose Barney Frank's continuing efforts to push predatory Internet casinos into your home. Rep. Frank will submit yet another proposal to legalize Internet gambling this coming Tuesday (9/16/08) in the House Financial Services Committee.
House Financial Services Committee (Members Page)
Democrats: Ph: Majority – (202) 225-4247 - FAX: (202) 225-6952
Republicans: Ph: Minority – (202) 225-7502 - FAX: (202) 226-4301
E-mail Form: http://financialservices.house.gov/contact.html
[9-11-2008 - Archive]
Dogged Frank Punting To Legalize Internet Gambling AGAIN!
ACTION:
Call your Representative today and urge him or her to oppose Barney Frank's continuing efforts to push predatory Internet casinos into your home. Rep. Frank will submit yet another proposal to legalize Internet gambling this coming Tuesday (9/16/08) in the House Financial Services Committee.
House Financial Services Committee (Members Page)
Democrats: Ph: Majority – (202) 225-4247 - FAX: (202) 225-6952
Republicans: Ph: Minority – (202) 225-7502 - FAX: (202) 226-4301
E-mail Form: http://financialservices.house.gov/contact.html
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Rep. Frank's bill will make online sports betting illegal, while allowing casinos, poker, black jack, slots, etc, to operate legally in the U.S. This bill gets the NFL and sports associations on more neutral ground (less opposition), but it holds the same devastating potential to destroy families in their own homes. How much money and time has Rep. Frank spent lobbying for foreign gambling interests and a predatory vice that will destroy countless families in our nation? Is online gambling his priority in a time when the U.S. economy cannot suffer the weight of more
gambling-induced destabilization?John Adams, our second U.S. President, once said, "Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of the facts and evidence."
Regardless of Rep. Frank's determination to legalize Internet gambling and to punt for off-shore, foreign Internet gambling special interests, the facts remain:
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Legalized Internet gambling will destroy many marriages and families through a potentially massive increase in gambling addictions.
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Legalizing or "regulating" Internet gambling will not lessen the degree of illegal gambling that occurs, but it will drastically increase accessibility, availability, speed and anonymity of gambling: the perfect conditions to create a storm of gambling addiction.
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Internet gambling is one of the most invasive, addictive and destructive forms of gambling ever in history.
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Citizens lose their vote to oppose gambling if they allow unwelcome casinos into their homes through the Internet.
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Online gambling entities have a growing history of corruption.
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The Interactive Gaming Council (based in Canada), off-shore casino operators (Pirates of the Caribbean), the European Union and a large concentration of online operators in the UK and "sovereign" Gibraltar (International Interactive Alliance) are attempting to force their liberal gambling policies on U.S. families through bending ears in the U.S. Congress. Citizens need to protect their families and tell these foreign predators to leave by keeping our borders safe by keeping the Unlawful Internet Gambling Enforcement Act of 2006 intact. Urge your Senators and Representatives to close the door on this predatory industry.
- Compare one million members of the Poker Players Alliance to 15 million problem and pathological gamblers in the U.S. (
[8-26-2008 - Archive]
Foreign Online Poker Lobby Shows Hand Too Early
An early press-release headline in the Congressional Quarterly read: "GOP Platform Committee Drops Prohibition On Internet Gambling." Today's headline for the same article reads: "
GOP Platform Committee Re-Inserts Prohibition On Internet Gambling," after well-funded, foreign-backed, online-gambling lobbyists from Poker Players Alliance failed in their attempt to remove "Internet gambling prohibition" language from the GOP platform.Showing your hand too early is often a fatal move in poker. Indeed, it appears as if the odds are better for foreign online casinos - backers of the
Poker Players Alliance - if they continue to mock U.S. law and exploit online gamblers for money, rather than gamble themselves. But even foreign online operators that continue enabling U.S. citizens to illegally gamble online face long odds. They are subject to arrest in the U.S. for violating the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). Regardless the potential of getting burned - or put in jail, some foreign operators, such as Cake Poker and WassPoker, persist in violation of UIGEA.Tom McClusky, Family Research Council's Vice President, said, "The Pokers Players Alliance showed their hand well too early by sending out premature, inaccurate press releases. The Republican Platform Committee should be proud that they have stood up for the law and families."
Meanwhile, the U.S.-based Gambling Cartel continues to embed itself more deeply into the GOP's structure, but pro-family Republicans opposing Internet gambling still remain in the majority. Sufficient reason exists for growing concern about the gambling lobby's influence on government policy.
American Gaming Association's president and chief lobbyist,
Frank Fahrenkopf (former leader in the Republican National Committee or RNC) is an ever-virulent influence in Washington, D.C. And the recent appointment of commercial gambling mogul and founder of Las Vegas Sands, Sheldon G. Adelson, to serve on the Bush Administration is troubling. Adelson represents a diverse and somewhat contrasting mixture of interests ranging from pro-Israel / Jewish issues, to a conservative group known as Freedom's Watch, to the highly exploitive trade of gambling expansion. Sheldon Adelson is also known for his large contributions to the Republican party.Gambling is not a partisan issue. It buys favor from both major parties. Overall gambling contributions to the Democratic party will likely top the highest record in 2002, while total contributions to the Republican party are declining since 2002. The Center for Responsive Politics documents political contributions on their Open Secrets Web site, where viewers can
see trends in gambling contributions. Viewers can also see which gambling entities gave to both the Democratic and Republican parties for 2008. So far, of the Political Action Committee (PAC) contributions, about 65 percent of "Casinos/Gambling" money has gone to Democrats, while 35 percent has gone to Republicans in 2008.The future of gambling literally rests in the hands of state and federal policy makers: therefore, political involvement will always be a component of gambling's existence. But parents are increasingly concerned about legal and illegal Internet sites soliciting their children with pornography and gambling. If voters have their say, illegal Internet gambling and other forms of legal gambling will most certainly experience decline.
At least for the 2008 election cycle, the GOP Platform continues to include language that protects families and children from illegal, foreign, predatory, online casino operations.
“We all know how hours can slip by when we’re in front of the computer,” one internet gambler writes, “but online gambling can feel like a total timeslip – especially as the tables are open 24 hours. And I know it sounds ridiculous, but the ‘virtual’ experience makes you somehow forget that you’re playing for hard cash.”
[Rhodri Marsden, "Cyberclinic: 'Is it too easy to run up gambling debts online?'"
More Information
· See the Internet Gambling Fact Booklet - UIGEA
· Internet Gambling Legislation Passed: A Victory For Families
· SAFE Port Act text (Article VIII contains the Unlawful Internet Gambling Enforcement - or UIGEA - text)
· H.R. 4411 Vote Record (Prohibit online gambling in U.S.)
· H.R. 4954 Vote Record (Prohibit online gambling in U.S.)
· H.R. 2046 Internet Gambling Regulation and Enforcement Act (Barney Frank bill to legalize online gambling in the U.S.)
· H.R. 2610 Skill Game Protection Act (Rep. Wexler's bill, claiming that poker is a game of "skill" and should be legalized online)
· H.R. 2140 Internet Gambling Study Bill (Rep. Berkley, D-NV, sponsored a bill to study tax model and various economic aspects of Internet gambling)
· H.R. 2607 Internet Gambling Regulation and Tax Enforcement Act of 2007 (Rep. McDermott, D-WA, sponsored a bill to "regulate" or legalize online gambling)
· Gambling interests ($$$) lobbying Congress 2006 (See Internet interests like YouBet.com, SportingBet, Interactive ... international, etc)
· International Interactive Alliance ($1,780,000 lobbying in 2006)
· Link to the entire SAFE Port Act of 2006 (see Title VIII for Internet gambling legislation)
- CRS Report for Congress - Internet Gambling: Two Approaches in the 109th Congress; RS22418 [Updated July 31, 2006]
- Internet Gambling: The 'Perfect Storm' of Harm
- Facts compiled by Senator Jon Kyl's office
- John W. Kindt, Gambling With Terrorism: Gambling’s Strategic Socio-Economic Threat To National Security
- Testimony and Statement of Professor John Warren Kindt, Univ. Ill., Internet Gambling Prohibition Act of 2006: Hearing on H.R. 4777 Before the U.S. House of Representatives Subcomm. On Crime, Terrorism, and Homeland Security
- ohn W. Kindt & Stephen W. Joy, Internet Gambling and the Destabilization of National and International Economies: Time for a Comprehensive Ban on Gambling Over the World Wide Web
- 'Clean' NCAA Playoff Games Sought [USA Today, March 27, 2007]
What Payoff Can You Expect From Gambling? (PDF print tri-fold handout)
Return to the Gambling Information homepage.
Paid for by Focus on the Family Action.
Source:
1. "Casino Gambling Web Representatives Headed to
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