Now that the ineptitude of the Unlawful Internet Gambling Enforcement Act (UIGEA), or rather, as Congressman Barney Frank would say – “the stupidest law ever passed” – has been brought to light via the the US DOJ’s recent clarification of the outdated Wire Act (the federal law that makes online sports betting illegal), heavy weight trade groups like the Poker Players Alliance (PPA) and American Gaming Association (AGA), are beginning to issue their statements and help the movement to pave an open pathway toward legalizing and regulating online gambling in the United States.
The AGA, which only recently came round to openly support legalization (along with Caesar’s Entertainment) is putting the pressure on Congress to draw up federal framework forope taxing and regulating online betting operators, using the DOJ’s ruling as validation for the urgency to do so. According to the AGA, in 2012 there is likely to be a flood of both domestic and offshore operators catering to U.S. citizens, all of which will hold inconsistent regulatory credentials or the lack thereof. Specifically, the AGA is concerned that players will not be adequately protected from fraud and underage gambling safeguards, and that criminal activities such as money laundering and racketeering will able to prosper without uniform federal regulations that protect State’s rights.
While the AGA’s concerns certainly make a strong case for federal regulation, it’s hard not to notice the fact that the AGA’s strongest member, Caesar’s Entertainment, has been pushing for federal regulation, so as to avoid the costs and potential roadblocks of conforming to different regulatory requirements in multiple State’s, rather than needing to conform to a single federal law. However, it is also true that a “patchwork” of regulatory laws could prove confusing and make enforcement more difficult as an increasing number of State’s regulate by their own precepts.
As for the PPA, although it has not been as aggressive as the AGA in pushing for federal regulations, the world’s largest poker political advocacy group has expressed hope that policymakers will act quick to introduce and pass federal laws regulating online poker activities. To the chagrin of online casino operators, the PPA has rather pushed the concept that online poker should stand apart from other betting games of chance, and has even gone so far to urge lawmakers to pass laws that would make other forms of gambling illegal.
