Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013

TheEngineer

TheEngineer

PPA VP of Player Relations
From the office of U.S. House Rep. Peter King (R-NY)

FOR IMMEDIATE RELEASE
June 6, 2013

King Introduces Legislation to Legalize Internet gambling, Protect Consumers

Washington, D.C. – Today, Rep. Peter King (R-NY) introduced the “Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013” which will legalize online gambling and address the regulatory uncertainty surrounding online gambling resulting from a December 2011 Justice Department ruling.
After years of prohibiting online gambling, DOJ’s 2011 ruling made online gambling of every type, except sports betting, legal at the federal level if it is lawful at the state level. But while online is legal, it is not uniformly regulated, the operators are not licensed, and consumers lack protection from fraud and abuse. With states approaching this issue piecemeal, it can lead to conflicting or inconsistent laws from state-to-state, varying levels of consumer protection, and a perverse incentive for a race-to-the-bottom on standards to attract gaming operators and revenues.
The current situation is not in the best interest of the American people. “A common federal standard will ensure strong protections for consumers, protect against problem and underage gambling, and make it easier for businesses, players, lawmakers, and regulators to navigate and freely participate,” said Rep. King.

The Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013 will remedy this situation by establishing a system of licensing and regulation at the federal level, while grandfathering any existing state activity that is limited to the geographic confines of the state, such as the laws in place now in Nevada, Delaware, and New Jersey. Online gambling on horseracing, currently permitted in the U.S. under the Interstate Horseracing Act, would also be grandfathered in. Specifically, the bill:

• Establishes a uniform federal system for states that choose to participate, enabling adults to gamble online, with controls to protect against compulsive gambling and to prevent underage persons from gambling.
• Creates an Office of Internet Gambling Oversight in the Department of the Treasury, and establishes criteria for state and tribal bodies to carry out licensing activities on behalf of the federal government. The federal government retains overall jurisdiction and oversight, but relies on state expertise for licensing of operators, enforcement and other activities, under a common federal standard.
• Gives any state or tribe that does not wish to participate in the federal interstate system the ability to opt-out and prohibit online gambling or to operate intrastate gaming within its borders as authorized under state or tribal law.
• Applies tough penalties to unlicensed operators. One major goal of this bill is to put them, and their off-shore, untaxed, unregulated services, out of business, forever.
• Shuts down money launderers and criminals seeking to use internet gambling to move funds. Regulating online gambling at a federal level will clearly separate illicit operators from law-abiding licensed operators.
 
TheEngineer

TheEngineer

PPA VP of Player Relations
More from Mr. King's office; one page summary of the bill.

Outline of the King Internet Gaming Legislation
“Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013”

1. Legalizes all forms of online gambling, with the exception of sports betting, when offered by federally licensed and regulated operators who meet strict standards for integrity and controls to protect consumers.

2. The federal government retains overall jurisdiction and oversight over federal internet gambling, but relies on state expertise for licensing and enforcement under a common federal standard. The rationale for a federal standard is that, as a result of the DOJ revised opinion on the Wire Act released in December 2011, states are racing to adopt varying laws legalizing online gambling. A common federal standard will ensure strong protections for consumers, protect against problem and underage gambling, and make it easier for businesses, players, lawmakers, and regulators to navigate and freely participate.

3. Creates an Office of Internet Gambling Oversight in the Department of the Treasury. As the federal regulator, the Office would oversee state and tribal agencies carrying out licensing activity, and would have independent authority to carry out licensing activity for any entity that chose to apply directly to the Office instead of an existing state or tribal authority. The bill establishes criteria for state and tribal bodies to carry out licensing activities on behalf of the federal government.

4. Gives any state or tribe that does not wish to participate in the federal interstate system the ability to opt-out and prohibit online gambling or to operate intrastate gaming within its borders as authorized under state or tribal law. To opt-out, the state governor or tribal leader would simply notify the Treasury of the decision to opt-out, or the legislature can pass a law to opt-out.

5. The Act treats casinos, Indian tribes, lotteries, and other potential operators equally. None would receive preference in licensing, and once licensed an operator would have the authority to take play on all types of online gambling as authorized under the Act.

6. Requires qualifying licensing bodies to prescribe regulations to prevent underage gambling and enforce fair play, and for the development of a compulsive gaming, responsible gaming, and self-exclusion program for each licensee to implement as a condition of licensure, and minimum standards applicable to such programs.

7. Revises the Public Health Services Act to allow federal funds to be used to treat gambling addiction – currently federal health funding cannot be used to help those who suffer from this addiction.

8. Applies tough penalties to unlicensed operators. One major goal of this bill is to put them, and their off-shore, untaxed, unregulated services, out of business, forever.

9. Shuts down money launderers and criminals seeking to use internet gambling to move funds. Regulating online gambling at a federal level will clearly separate illicit operators from law-abiding licensed operators.

10. Grandfathers online gambling operations offered by states and tribes as of the date of enactment.
 
kingphil02

kingphil02

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Dont know?

Could be a good thing but may be a bad thing. Just have to c the end result if it compleatly gets regulated approved.
 
dj11

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134 pages of Legal Mumbo Jumbo mostly. That makes it longer than any previous attempt at Federal Legislation that I have read, and I at least scan thru all the relevant legislation that I run across.

It seems to cover most of the concerns that have popped up in Government hearings. Indian Tribal gaming rights, underage gambling, addictive gamblers. There seemed to be less mentioned about money movement on and off sites than I would prefer.

One of my concerns was how this would affect pokerstars in particular. Many Bad Actor clauses have shown up in other legislation, and while there is no specific Bad Actor clause in this, Pokerstars would have to re-locate to the US to serve us. We all know that Pokerstars is the Gold Standard by which all other sites will be measured.

This one has it pretty well covered with few remaining concerns. But since it is still legal mumbo jumbo, it sure would be great to get a lawyer to summarize the bill in terms we poker players can absorb.

There is a peculiarity in here where no foreign entity could provide OLP services to the US, but US entities could provide OLP to any worldwide jurisdiction where it is legal.

If thought through, that is the equivalent of saying that the US will not allow Mercedes Benz to sell cars here, but the US can sell cars to germany. Silly in this modern day.
 
xdeucesx

xdeucesx

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I'm a big fan of the piece allowing ROW players to play on US sites. Looks good overall, but not sure why sports betting isn't allowed? How does SB not fall into the " game of skill" classification, while slots and keno do?

Again, have to wait and see what processors move in and how they run the games before believing this is really good or bad tbh
 
Debi

Debi

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Concerns me that it includes all those other forms of gambling. In states like Georgia that is really going to hurt our chances I think.
 
xdeucesx

xdeucesx

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Concerns me that it includes all those other forms of gambling. In states like Georgia that is really going to hurt our chances I think.

I was thinking that too, we might lose a pretty big handful of southern states who won't approve :(
 
kidkvno1

kidkvno1

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It will also kill any games that are running in the US, will make it hell for a lot of Forums to run any games, for US players.
Applies tough penalties to unlicensed operators. One major goal of this bill is to put them, and their off-shore, untaxed, unregulated services, out of business, forever.
:(
 
curtinsea

curtinsea

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Very unlikely Tribes will support his. Even though it offers an 'even playing field,' Tribes do not want to see house-banked casino games online, because it will tend to kill their casino businesses. All those expensive casinos left empty because slot players can do so from home is not good for the Tribes, even if they are still profiting from those at home players.

With no companion bill in the Senate, I think the likelihood of Reid bringing this up in the Senate, in the very unlikely chance it were to pass a full House vote, is nil.
 
curtinsea

curtinsea

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It will also kill any games that are running in the US, will make it hell for a lot of Forums to run any games, for US players.
:(

Federal legislation of any kind is going to drastically change the affiliate industry.
 
curtinsea

curtinsea

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I'm a big fan of the piece allowing ROW players to play on US sites. Looks good overall, but not sure why sports betting isn't allowed? How does SB not fall into the " game of skill" classification, while slots and keno do?

Sports betting violates the Wire Act.
 
xdeucesx

xdeucesx

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Sports betting violates the Wire Act.

I know that, I just meant it more as a general question how one could possibly think that there is more skill involved in slot machines or keno as opposed to SB
 
xdeucesx

xdeucesx

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It will also kill any games that are running in the US, will make it hell for a lot of Forums to run any games, for US players.
:(

I think it was more talking about the Merge Network or Revolution network....sites that are offering real-money games to US players currently. Although these sites offer to ROW as well, obviously they would die w/o US support.
 
curtinsea

curtinsea

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I know that, I just meant it more as a general question how one could possibly think that there is more skill involved in slot machines or keno as opposed to SB

Skill is not being used as a factor in determining which games are allowed under this bill. This bill encompasses all games not prohibited by the Wire Act. Nobody is claiming any skill is involved in lots
 
curtinsea

curtinsea

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I think it was more talking about the Merge Network or Revolution network....sites that are offering real-money games to US players currently. Although these sites offer to ROW as well, obviously they would die w/o US support.

US regulated poker is the best way to eliminate the current crop of foreign sites operating in the US today, without a doubt. But with US regulation is going to come a change in marketing as well, IMO. The days of sites giving away $$ in the form of freerolls and sponsored leagues would likely be over, as more conventional marketing is likely to displace affiliate marketing. I don't think affiliate marketing will completely go away, but just how much % will go to affiliates is likely going to be far less than current levels.

Without player penalties for playing unlicensed sites, the current networks would likely increase their giveaways to try to hold on to market share. But the risk to players will be too high. Not only would they have no protection if the sites went under, but they would also forfeit their balances should the Feds intervene.
 
curtinsea

curtinsea

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Concerns me that it includes all those other forms of gambling. In states like Georgia that is really going to hurt our chances I think.

I suspect that Barton's bill is going to be poker only. Between the two, I would tend to support Barton over King. Less because of what I think should be law, more because of what I think could become law.
 
hobonc

hobonc

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I think as far as regulation is concerned, it would be in OLP's best interest to keep online poker seperate from traditional wagering such as craps, video poker, keno, and the like. There are too many cons when it comes to traditional wagering that would only be excess bagage for the OLP industry. One big thing is that poker is a match of wits, skill, and sometimes luck; with players vying against each other while those other games are players verses the house. One of the most commented threads on CC is the "Rigged Megathread". Wait until people start complaining because they lost directly to the house. IMO, poker should not allow itself to be lumped together with all online gaming.
 
kidkvno1

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I think it was more talking about the Merge Network or Revolution network....sites that are offering real-money games to US players currently. Although these sites offer to ROW as well, obviously they would die w/o US support.
ROW players and us in the US would lose any cash we have on them.

I suspect that Barton's bill is going to be poker only. Between the two, I would tend to support Barton over King. Less because of what I think should be law, more because of what I think could become law.
Can you post a link to the Barton's bill?
 
Aces2w1n

Aces2w1n

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So all in all... they have banned online gambling because they are delaying the fact ppl will be gambling from home.

While every other country is moving forward, U.S will be left behind in the poker world. Hopefully you guys soon will be allowed to play poker online, we need more skill/fishies in the crowd.

Miss the chat that the U.s people bring to the tables :) It's very quiet these days.
 
dj11

dj11

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In a nutshell.

The lure for any athlete to bet against himself, at any level, is where the problem lies with Sports Betting. Then add in all the difficulties with those wanting to fix contests.
 
TheEngineer

TheEngineer

PPA VP of Player Relations
I know that, I just meant it more as a general question how one could possibly think that there is more skill involved in slot machines or keno as opposed to SB

It's not a question of skill. The bill authorizes many games that are designed to ensure there is no skill involved.
 
dj11

dj11

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It has a number now, and I assume that means it has been officially introduced. However that might be a premature assumption. Googling HR2282 shows a bill from the last Congress about having all the flags of all the states and territories of the US circle the Washington Monument. :confused:

HR 2282.

The complete text is linked to in the latest PPA newsletter which I will assume everyone here gets in e-mail. And if you don't get it, you are not subscribed, and should be.
 
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