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New Gambling Bill for US Citizens

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Out with the Unlawful Internet Gambling Enforcement Act (UIGEA)

With the introduction of Barney Frank's Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009, it appears that online gambling may be legalised.

The Chairman of the House Financial Services Committee proposed the new gambling bill on Wednesday, 6 May this year, and introduced it by saying it, "provides for the licensing of internet gambling activities, by the Secretary of Treasury, to provide for consumer protections on the internet, to enforce the tax code, and for other purposes." Online betting communities have applauded the bill which will reverse UIGEA legislation that has been considered to thwart the civil liberties of those who choose to participate in online gambling. Barney Frank's bill followed the reintroduction of the Midnight Rule Act, which mandates that all regulatory changes made by the White House within the last three months of an administration must be approved by incoming cabinet secretaries. As such, controversial UIGEA legislation from the Bush administration will be made redundant following the introduction of the new gambling bill under Obama's leadership.

The bill is currently set to be introduced at Congress in December this year, and proposes that licensed online gambling operators are legalised. These operators will be subject to investigation for previous illegal activity, and can only operate after signing a five year licensing agreement in which they agree to adhere to strict operating criteria. The licenses will only be issued to operators who are able to prove that they have the necessary financial, administrative and operational support structures in place to ensure fair gambling practice for the user. Consumer protection will be prioritised and operators will be required to provide evidence of sufficient anti-fraud and identity theft technologies. They are obviously also bound to adhere to all relevant state laws, including the protection of minors and problem gamblers. Those who are found to be in contravention of any state laws will be subject to penalties and legal action.

Whilst the bill will provide consumers access to online betting at casinos, bingo sites and online poker rooms, sports betting and any other gambling deemed illegal under the 'Professional and Amateur Sports Protection Act' will still remain prohibited. However, the new act is currently being viewed as a victory in itself, with the anticipation of changes being made to existing regulations imposed on sports betting regulation in the not too distant future.

Whilst the bill will receive opposition from Republicans, it appears there is immense support in favour of the new legislation. Former Head of the Poker Players Alliance, Alfonse D'Amato, has publicly announced that "We are grateful for Chairman Frank's leadership and will be activating our grassroots army made up of over one million members to help him drive his legislation."

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