Frank Bill

I received this in my inbox this morning. Some info on the Internet Gambling Bill. Not a lot of info but some interesting tidbits. Especially regarding the other bills being proposed by Berkley and Wexler.

Internet casino and online gambling information - Interactive Gaming News Front Page


Rab

The Wexler bill sounds promising.

Franks proposed bill seems a little watered down from what we were expecting, still, a step in the right direction, I suppose.

Thank you for sharing that with us, Rabidus. Yeah, a little disappointing, and I agree Dave, the Wexler bill sounds much more promising.

I have some interesting news from today's national post that showed up on my company intranet. I can't find a link on the national post site. Is it okay to post the content here?

It's regarding the WTO decision and speculation that the ban will soon be lifted.

I didn't see this post until now. (Sorry. ) But please, go ahead and post it. We'll take a look and make sure it's ok. Sounds like some good info.

Here's the article from the National Post - April 26.



On March 30, a World Trade Organization tribunal handed down a potentially significant finding against U.S. restrictions on Internet gambling. The smart money now thinks that online betting could soon be liberated.

The panel was set up at the request of Antigua and Barbuda, who complained that the United States had not complied with the WTO's earlier decision that it must change the way it regulates gambling over the Internet. The previous ruling, in April, 2005, found that while the United States was within its rights to restrict the import of goods and services on "public morals" grounds, as it had argued in its defence, those rules must be applied in a non-discriminatory manner. If the United States finds online gambling offensive, it must be consistent in its restrictions and apply them equally to domestic and foreign providers.

And therein lies the rub: the United States allows interstate online betting on horse racing. The United States had also agreed during the Uruguay Round to open its markets to foreign suppliers of gambling and betting services, although the United States Trade Representative (through a spokesman) claimed in 2004 that the previous administration "clearly intended to exclude gambling from U.S. service commitments" when they signed the deal. Both of those inconsistencies lost it the original case.
The United States Congress passed the Unlawful Internet Gambling Enforcement Act in October, 2006, ostensibly to bring its laws into conformity with the April, 2005, ruling. But the compliance panel ruled that the United States has taken no satisfactory remedial action that would bring its laws into conformity with its previously established obligations. Moreover, it appears that the United States applies its laws in a discriminatory manner, by prosecuting foreign gambling entities more than it does U.S. gaming firms. Game, set and match: Antigua and Barbuda.
There is still no official word from the USTR about whether the United States will appeal this latest decision. If they do not, though, the United States would need to change its federal law either by closing the loopholes allowing domestic online gambling, or by freely allowing gambling online without any restrictions.

Of course, the United States could also choose to ignore the ruling, although it has a good record of complying with previous rulings against it. Antigua and Barbuda would in that case be entitled to retaliate against the United States. However, their options appear limited. As a tiny island nation of 80,000 people, the normal recourse of WTO members who have had their rights infringed -- the ability to increase tariffs on the perpetrating country's exports -- will probably be ineffectual, not to mention economically damaging to Antiguans themselves. One option that has been suggested is for Antigua and Barbuda to ask for permission from the WTO to "cross-retaliate": to suspend its obligations to protect the intellectual property rights of U.S. companies.

Establishing a haven for software, music and movie piracy would presumably get the attention of the United States, although it may be an undesirable industry for Antigua and Barbuda to encourage if it leads to other more nefarious activities such as money-laundering, and may threaten Antigua and Barbuda's preferential access to the United States market under the Caribbean Basin Initiative.

Presumably, though, the access granted to the United States under the CBI is less lucrative than would be a resolution to the gambling dispute in Antigua and Barbuda's favour.

If market expectations are any guide, though, the United States will likely end up allowing its citizens to gamble online. In the hours after the WTO ruling was announced, stocks in online gaming companies lifted. Investors clearly see the writing on the wall, even if the U.S. government does not.
- Sallie James is a policy analyst with the Center for Trade Policy Studies at the Cato Institute and author of "U.S. Response to Gambling Dispute Reveals Weak Hand."

Here's one from the National Post - April 27


Legislation that would lift an online gambling ban imposed by U.S. Congress last year was introduced yesterday by the chairman of U.S. House Financial Services Committee.

Calling the Internet gambling prohibition "imprudently adopted," Democratic Representative Barney Frank of Massachusetts outlined a bill to make it legal again for banks and credit card companies to make payments to online gambling sites.

"The fundamental issue here is a matter of individual freedom," Mr. Frank told a news conference, adding his committee would hold a hearing on the matter in June.

The bill includes provisions for licensing and regulating online gambling companies to protect against underage gambling, compulsive gambling, money-laundering and fraud.

But Mr. Frank conceded, "The votes aren't there to change it right away" and he listed only 11 co-sponsors in the 435-member House for lifting the ban.

Mr. Frank said his proposal could face opposition from religious conservatives, and from some liberals who find gambling "tacky." However, he also said the ban imposed by Congress had awakened many voters to the issue and predicted support for the bill could grow.

"There's a group of [voters] who've been activated here," Mr. Frank said.
The Internet gambling payments legislation was signed into law last October by George W. Bush. It had won support from majorities of both Republicans and Democrats.

The ban has been closely monitored by investors in some British- based gaming companies, such as Partygaming PLC and 888 Holdings PLC. In a crackdown on Internet gambling, U.S. prosecutors arrested BETon- SPORTS' then-CEO in July and its founder last month. Two founders of payments processor NETeller were arrested in January.