Frank's On a Mission

On June 8th at 10am, the US House Committee on Financial Services will conduct a hearing to discuss the viability of regulating online gambling in the United States at the Rayburn House office building on Capitol Hill. The hearing, titled "Can Internet gambling be effectively regulated to protect consumers and the payment system?" will be lead by newly appointed House Committee Chairman Barney Frank, who released the Internet Gambling Regulation Enforcement Act in late April this year.

Congressman Frank's bill will repeal the Unlawful Internet Gambling Enactment Act passed by President Bush in October Last year. Frank stated that "the existing legislation is an inappropriate interference on the personal freedom of Americans and this interference should be undone". The prohibition of Internet gambling in the US has indeed left American citizens who choose to gamble online without any meaningful consumer rights or protections. Frank's legislation proposes practical and enforceable standards to bring clarity to the business, and provide consumers the security they both expect and deserve.

In addition, the act will establish a federal regulatory and enforcement framework to licensed online betting and wagering companies accepting US players, to the extent outlined by the individual's state, sports league, or Indian tribe. Such licenses would in turn prevent underage and obsessive gambling, money laundering and fraud. If the act is passed, it will exempt the ban for properly licensed operators, which as a result, will allow Americans to lawfully engage in their activities.

Regulation will also bring about several other factors that have been considered by the House Committee, including the accumulation of billions of dollars to be used for paying expensive taxes, healthcare, and other domestic legislation.

According to Congressman Frank, resistance is growing against the ban on financial transactions online. Already 19 Congress members have listed their support as co-sponsors of Frank's bill, including committee members Ron Paul (R-TX) and Paul King (R-NY). Congressman King has also pointed out that not all members who voted for the UIGEA necessarily opposed it, and that the conditions in which this meeting will take place are significantly more favorable. Lawmakers are hearing from people who don't like it now so I'd say the situation is very fluid, said Frank.

Nevertheless, Frank admits that the congress may not be able to amend the ban too drastically, and the bill will in any case face an uphill battle. Therefore, many leading online gambling websites are now planning the encouragement of massive US player support for Congressman Frank's bill. Many players have also offered their support as witnesses to testify at the meeting, and the list of witnesses ranges from professional player Howard Lederer, to Gerald Kitchen, CEO of Secure Trading, LTD.
The meeting which will discuss the feasibility of regulation is able to influence the UIGEA dramatically, and possibly even abolish it. With the combined support of both players, operators, and the entire community, online gambling in the US may eventually be lawful once again, and nullify what Frank calls one of the silliest laws that was imprudently adopted.