Tuesday , November 26, 2024

A New Bill Seeks to Allow But Also Regulate Internet Bets

A bill to establish an enforcement framework for licensed online gambling operators to accept wagers from individuals in the U.S. was introduced on Wednesday in the U.S. House of Representatives by Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee. The legislation is designed to replace the controversial Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), which bans gaming sites from accepting money transfers of any kind for bets deemed to be unlawful gaming. Barney today also introduced separate legislation to delay implementation of UIGEA regulations, which were set to go into effect on Dec. 1. The UIGEA directs the U.S. Treasury Department and the Federal Reserve Board to create regulations that would require banks and processors to block payments to unlawful gaming sites. Banks, processors, the Fed, and Treasury Department have said the regulations are ambiguous and unworkable and will hurt the financial industry while having little impact on illegal online gambling. The new Internet Gambling Regulation, Consumer Protection & Enforcement Act of 2009 would establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses to accept bets and wagers from U.S. residents. To be licensed, gambling operators would have to maintain effective protections against underage gambling, compulsive gambling, and money-laundering and fraud, and enforce prohibitions or restrictions on types of gambling prohibited by states and the Indian tribes. The bill gives the U.S. Department of Treasury 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. They also would have to agree to be subject to U.S. jurisdiction. Applicants also would be 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. The Treasury Department would have the authority to revoke or terminate the license of any operator that fails to comply with the bill. Violators could be fined and/or imprisoned for up to five years. Earlier legislation to replace or block implementation of UIGEA regulations?which were completed by the Bush Administration?failed during the 110th Congress. But a Frank spokesman says “we certainly expect more support for it this time. We will try to move it this year in the Congress but time will only tell how much support we will get.”

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