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Internet Gambling: Online Poker gets no help from Frank bill

written April 28, 2007

Online gamblers who were expecting Barney Frank to introduce a new bill yesterday condemning prohibition of Internet gambling were served more of a vegetarian diet rather than meat and potatoes.

The gist of Barney Frank's proposed new Internet gambling bill (H.R. 2046) states:

1-The Internet Gambling Regulation and Enforcement Act of 2007 that would create an exemption to the ban on online gambling for properly licensed operators , allowing Americans to lawfully bet online.

2-The Act establishes a federal regulatory and enforcement framework to license companies to accept bets and wagers online from individuals in the U.S., to the extent permitted by individual states, Indian tribes and sport leagues.

How is this progress?

What does this mean?

According to OGpaper.com. it means that, if a state has a law prohibiting casino gambling at that state, online casinos cannot operate in that particular state, even with a license. And in the United States, there are only 11 states which have private casinos (except Indian tribal gambling, which is treated separately). So in the other 40 states, where casino gambling is illegal - online casinos cannot operate. And when those 11 states already have laws or are working on laws to explicitly prohibit online gambling - there are no states left where a licensee could operate - thus banning online gambling on a state level.

Except for the Indian tribes.  According to the Internet gambling bill, Indian casinos has the option to opt-in or opt-out for Internet gambling. This means that the Indian tribes which already have casinos in 27 states, could run online casinos in their states, as well.

So what did we learn today from Rep. Barney Frank and his new Internet gambling bill? We learned that online gambling would be given as an option to the Indian tribes, but in its essence would still be illegal operation for anyone else, based on the states' laws.

All Mr. Frank suggests with this bill is to take the burden off the shoulders of the financial institutions, cleverly outlaw online gambling on state level, and let the Indian tribes decide if they want to operate online gambling websites.

Furthermore, as for the WTO decision favoring Antigua over the US regarding Internet gambling, Congress really doesn't care whether or not the WTO approves of how they handled this issue.

The problem with international bodies like this is enforcement (especially against large nations), and there's only so much they can do to the U.S. in this matter. It's unfortunate, but being the world's largest economy, the U.S, can afford to call it's own shots and not have repercussions.

Lastly, many Poker advocates seem to think they have a better chance of becoming "legal" and accepted online if they distance themselves from the realm of sports betting.  To them, I say, good luck trying to fight Washington on their own without the deep pockets that online Sports books have been demonstrating lately in the form of new lobbyists.

Trying to argue that Poker is a game of skill whereas sports betting is not will only lead to more frustration and failure. 

The strategy I believe most effective has to do with our individual 'rights' and 'freedom' to choose online gambling as a form of entertainment we value within the confines of our own homes.  

For complete coverage of the legality of Internet gambling, please visit our forums below.

http://forums.eog.com

--EOG