[StBernard] House Financial Services Committee Approves Legislation to Legalize Internet Gaming

[Westley Annis]

July 28, 2010                                                     

House Financial Services Committee Approves Legislation to Legalize Internet
Gaming

Frank bill expands personal freedom

 

Washington, DC - Today, the House Financial Services Committee passed
legislation to 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.

The committee vote and amendments can be found by clicking here.
<http://financialservices.house.gov/Hearings/hearingDetails.aspx?NewsID=1340

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H.R. 2267 protects the freedom of adults to spend their money as they see
fit, while providing appropriate consumer protection.  The bill, which
licenses and regulated online gambling, requires licensees to take
appropriate safeguards to prevent fraud, money laundering, underage and
compulsive gambling.  As amended, it contains additional, strong protections
to prevent minors from gambling online; prevents inappropriate online
advertising targeted toward underage or compulsive gamblers; clarifies the
effect of this act on Indian tribes; requires consultation with tribes in
implementation; prohibits licensees from accepting bets or wagers from
persons on the self excluded list of compulsive gamblers and persons
delinquent with child support payments; prevents the use of a credit card to
gamble online; clarifies an exception for intrastate and intratribal online
lotteries; prohibits sports betting;  requires that players set financial
loss limits; strengthens regulatory requirements re: integrity and fairness;
bans violators of federal and state gambling laws from obtaining a license;
and requires a substantial U.S. presence as a condition of obtaining a
license.

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 
  

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