Legalizing online gambling HR 2267 Part two
I wrote in my first blog about the new bill introduced by Barney Frank, HR 2267, that would supposedly legalize internet gambling. Before I go into anymore depth about this bill I want to explain why I feel like online gaming legalization would be a massive improvement and why do so many oppose it.
For many gamblers the idea of the government getting involved in online gambling just means having to pay taxes. This is obviously unpopular and this bill in the early stages actually had a 50% tax rate mentioned. 50% !!!!!!! This obviously would be a disaster and would just lead to more problems and fraud. When I played the stock market the IRS used higher tax rates mainly to discourage quick trading and to discourage selling a stock without holding on to it for at least a year which is not a bad idea. The IRS had ways to make responsible stock trading lucrative and I think this can be done with online gaming as well. I believe in the end something like 10-15% range like you see in stocks will be implemented if any bill is ever introduced that has a chance of succeeding.
So the questions I want to answer over the net few blogs is why do I favor legalization but lets first take a look at the bill. This is directly from the governments web site and gives you a quick idea of the bill but I would encourage anyone who is interested to read more of the bill and read the debate on the bill. This summary does not give a total picture of what the bill represents but is a good start.
“Financial Services Committee Chairman Barney Frank (D-MA) unveiled legislation that would enable Americans to bet online and put an end to an inappropriate interference with their personal freedom.
H.R. 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act of 2009 would establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses authorizing them to accept bets and wagers from individuals in the United States. The legislation comes in response to the enactment of Unlawful Internet Gambling Enforcement Act (UIGEA), which restricted the use of the payments system for Americans who gamble online.
In addition, Chairman Frank announced today he is introducing separate legislation to delay the implementation of regulations pursuant to the 2006-passed UIGEA, which are set to go into effect December 1, 2009. The regulations were completed by the Bush Administration at the last minute, and the legislation will stop Federal regulators from enforcing the UIGEA until Congress has had a chance to decide national policy.
SUMMARY OF INTERNET GAMBLING REGULATION CONSUMER PROTECTION & ENFORCEMENT ACT OF 2009 (H.R. 2267)
SUMMARY
The Internet Gambling Regulation Consumer Protection & Enforcement Act would establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses authorizing them to accept bets and wagers from individuals in the U.S., on the condition that they maintain effective protections against underage gambling, compulsive gambling, money laundering and fraud, and enforce prohibitions or restrictions on types of gambling prohibited by states, and Indian Tribes.
LICENSING
This bill would provide the Department of the Treasury with the exclusive authority to establish regulations and license Internet gambling operators. License applicants would be:
* Subject to review of their financial condition and corporate structure, business experience, suitability, and criminal background checks, and agree to be subject to U.S. jurisdiction
* Prohibited from accepting any type of bet or wager that is initiated or terminated in a state or tribal land that prohibits that type of Internet gambling, or any sports gambling or wager prohibited under the Professional and Amateur Sports Protection Act.
ENFORCEMENT
This bill would provide Treasury the authority to revoke or terminate the license of any operator who fails to comply with the bill’s provisions. Violators could be fined or imprisoned for up to five years, or both.
SAFEGUARDS AND PROTECTIONS
Any Internet gambling operator receiving a license would be required to have the appropriate safeguards in place to:
* Ensure an individual placing a bet or wager is of legal age as defined by the law of the State or tribal area in which the individual is located at the time the bet or wager is placed
* Ensure an individual placing a bet or wager is physically located in a jurisdiction that permits Internet gambling at the time a bet or wager is placed.
* Protect the privacy and security of individuals engaged in internet gambling
* Combat fraud and money laundering as prescribed by regulations issued by the Secretary of the Treasury or designee
* Combat Compulsive Internet Gambling ”
So this is a good beginning to understanding the bill but there are still alot of things I think people should understand about this bill. I have seen alot of people on the forums praising this bill as a salvation and the first step to Neteller and Pinnacle returning to the US and the golden age of online gaming returning. The sad truth is this bill is extremely flawed and we will discuss it more in my next blog.
Have a great weekend
Cheers
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