WASHINGTON D.C. - The Obama Administration's decision to delay the implementation of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) to June 2010 has been welcomed by proponents of regulated online gambling in the U.S.
According to Safe and Secure Internet Gambling Initiative Spokesperson Michael Waxman:
"We see this move by the Obama Administration as a decision to halt implementation of UIGEA in order to give Congress time to enact an alternative approach of regulating Internet gambling instead of prohibiting it. This decision is the latest evidence that momentum is building for a shift in policy and a rewrite of U.S. Internet gambling laws to provide for regulation and taxation instead of prohibition. Over the next six months, Congress should act to create a framework that regulates Internet gambling to protect consumers and collect billions in much-needed revenue for critical federal and state government programs."
The announcement to delay the implementation of the UIGEA by six months was done jointly by Department of Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke last November 27.
Financial services, tasked with the gargantuan task of the actual implementation of the UIGEA also welcomed the delay as this will give enough time for authorities to study the UIGEA, reform or drop it, or introduce a better legislation regarding online gambling.The sector which includes the Chamber of Commerce and Financial Services Roundtable have publicly stated that the implementing rules of UIGEA are "mbiguous, burdensome and unlikely to stop Americans from gambling online."
Poker Players Alliance (PPA) also welcomed the move. In a statement released in time with the announcement, the PPA lauded the delay of the UIGEA and acknowledged the Federal Reserve and Department of Treasury for heeding the petition that the group had filed along with the National Thoroughbred Racing Association, and the American Greyhound Track Operators Association.
According to PPA Chairman and former senator Alfonse D'Amato:
"THe PPA is extremely pleased with the decision by the Federal Reserve and Treasury to grant the six month extension. This is a great victory for poker, but an even greater victory for advocates of good and fair public policy."
D'Amato also stated that the extension will give legislators more time to work on UIGEA.
"These additional months are critical to provide legislators time to clarify UIGEA and pass legislation to lcense and regulate poker early next year."
Last December 3, leading pro-regulation legislator Representative Barney Frank, also the chair of the House Financial Services Committee, presented his case for the repeal of the UIGEA and instead allowing for a regulated online gambling industry with his Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (HR 2267).
According to Frank:
"The notion that this Congress should tell millions of adult Americans that we know better than they what they should with their own money on their own time on their own computer seems to me to be a very grave error."
Frank admitted that the while the internet is not perfect and that minors can access items that should not be accessible by them, he stated:
"The notion that because some people will abuse something, you prevent everybody from doing it, is as great a threat to the liberty of the individual as any philosophy I have seen."
Up to $42 billion in taxes can be generated over 10 years in a regulated online gambling industry in the U.S.
The hearing also heard the testimonies of experts who believed that regulated online gambling would protect consumers and ensure fairness including WiredSafety Executive Director Parry Aftab, Youbet.com Executive Chairman Michael Brodsky, and National Council on Problem Gambling Executive Director Keith Whyte.
On the other hand, Harvard University Professor Malcolm Sparrow presented the committee a comprehensive study conducted by Harvard's School of Government on the benefits of a regulated online gambling industry.
As expected, advocates of the UIGEA implementation were quick with their arguments.
Representative Spencer Bachus from Alabama attacked the integrity of online gambling, citing a letter from Assistant Director Shawn Henry of the FBI's cyber division.
According to Henry's letter:
"Technology exists to manipulate online poker games. Technically, the online poker vendors could detect this activity and put in place safeguards to discourage cheating, although it is unclear what the incentive would be for the vendor."
With this, Bachus asked that instead of delaying the UIGEA, it should be immediately enforced:
"These regulations should have been finalized and implemented two years ago. It's time to stop delaying the will of the great majority of this Congress and the American people. Quit the foot dragging and enforce this law."
12/8/09
