PSPA in the Spotlight

Previous legislation
Thanks largely to an act called the UIGEA (Unlawful Internet Gambling Enforcement Act) all forms of internet sports betting and online gambling are illegal in the USA. This includes online poker, slots and roulette, among others, and all forms of sports wagers. After unsuccessful attempts to have the online gambling industry regulated, Representative Barney Frank (D-Mass) has finally managed to secure a victory for online gamblers. This however is not as cut and dried as it initially appears. Frank, along with Representative Peter King (R- NY), prevailed by securing the passing of the Payment Service Protection Act (PSPA 6870) by a 30 -19 vote. This has serious implications for the future of online gambling in the USA.

What is the PSPA?
At its core, the PSPA calls for greater clarity on which online gambling activities should be outlawed. The former legislation - the UIGEA - was a blanket ban on all online gambling activity. This is something that Representatives Frank and King, among others, fail to see the logic of. The PSPA is a call to regulate the online gambling industry in the USA. This means that there will be checks and balances on what online gambling will be permissible; how it will operate and to whom it will be accountable. Ordinarily, regulation entails licensing and strict adherence to federal and state laws, tax law and internationally accepted gaming standards.

What happens next?
The PSPA requires that both the Federal Reserve and the Treasury Department draft and apply regulations that prevent sports betting transactions from being processed within 60 days of the bill being enacted. The PSPA goes further: any regulations beyond sports betting will be stopped, until an administrative law judge determines exactly what is legal and illegal Internet gambling. This means that online poker for example, will have its day in court. Further, the bill compels the Treasury Department to create and maintain lists of unlawful Internet gambling businesses. Any companies not appearing on those lists cannot be blocked until a judge has determined so. Banks in the USA are prevented from processing any transactions related to online gambling sites. Now however, the courts will decide which sites get the green light.

Responses
The Poker Players Alliance (PPA) applauds the measure while opponents (Spencer Bachus and co) decry its passing. Professional Sports Leagues are opposed because they supposedly want to retain the integrity of American sports. To them gambling is seen as a corrupting influence. It is a tad strange, given the legal gambling strongholds in Nevada and New Jersey, to which Pro-Sports Leagues don't object.