Integrity Legal

On what could be described as a sad day for civil liberties in the United States it was recently noted that America is in something of a figurative de facto state of war upon the internet manifestation of the game of Poker. To quote directly from what would appear to be a Daily Mail article posted on the website ThisIsMoney.co.uk:

Three of the largest online poker sites were taken over by the FBI on Friday in the probe that could bring about the death of the internet gambling industry. Websites Full Title Poker, Absolute Poker and PokerStars were all shut down and replaced with warning messages. Their owners were charged with bank fraud and money laundering.

The acronym UIGEA noted above is used to condense the name of the provisions of the so-called SAFE Port Act‘s section which was, at one time prior to enactment, referred to as the Unlawful Internet Gambling Enforcement Act. There remains a great deal of controversy surrounding the UIGEA provisions of the SAFE Port Act especially as the addition of the UIGEA language occurred through what could be described as legislative chicanery. In order to better shed light upon this issue it may be best to quote directly from Wikipedia:

The Act was passed on the last day before Congress adjourned for the 2006 elections. Though a bill with the gambling wording was previously debated and passed by the House of Representatives,^[6][7][8] the SAFE Port Act (H.R. 4954) as passed by the House on May 4th (by a vote of 421-2) and the United States Senate on September 14th (98-0),^[9] bore no traces of the Unlawful Internet Gambling and Enforcement Act that was included in the SAFE Port Act signed into law by George W. Bush on October 13th, 2006.^[10] The UIGEA was added in Conference Report 109-711 (submitted at 9:29pm on September 29, 2006), which was passed by the House of Representatives by a vote of 409-2 and by the Senate by unanimous consent on September 30, 2006. Due to H.RES.1064, the reading of this conference report was waived.

Clearly, the passage of the amended version of the SAFE Port Act was accomplished via a rather circuitous legislative route. Meanwhile, the enforcement of this Act’s provisions have been noted by some to have had a massive impact upon both the online gaming industry as well as other industries whose business models dovetail those of many online gaming endeavors.

How this whole situation will ultimately play out remains anyone’s guess, but there is little doubt that legal matters pertaining to online gaming are likely to be at the forefront of many judicial dockets in the upcoming months.

As a former licensed poker dealer himself, this blogger is somewhat saddened to hear this news as the game of Poker, both in its real-world and online forms, is a favorite pastime of many players both in the United States of America and around the world.

For related information please see: Online Gaming Lawyers.

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Online gaming is an interesting phenomenon, from a legal perspective, as it has only been in existence for a relatively short period of time. Therefore, a great deal of legislation that addressed gaming issues of the past have been rendered obsolete while new technology allows for transactions and platforms that were not even thought of only 5 years ago. That said, there are some jurisdictions which have made the decision to allow online gaming in most forms pursuant to rather stringent regulation and official oversight. The United Kingdom is a prime example of this approach to dealing with online gaming. The UK has created a statutory scheme for regulating and overseeing legitimate gaming enterprises operating on land or over the internet and/or world wide web. In a recent article posted on the website CasinoPeople.com, it was noted that online gaming has become more popular in recent years:

While it is quite clear that online gambling has increased in popularity recently, the figures that came out of a study by Nielsen, an independent media measurement company, are somewhat surprising.

The study by Nielsen shows that online gambling in the United Kingdom has gone up by 40 percent in the last year. The numbers show that there have been about 3.2 million more people in Britain who have logged onto Internet gambling sites in the past year, than there were the year before. In the same time period, the number of additional visitors who accessed various social media sites such as Facebook, and others who offer similar services, only totaled 2.2 million.

There were a number of other interesting statistics that Nielsen published as part of their study of the United Kingdom online gambling world, such as the division of how many men and how many women take part in online gambling, and information regarding the ages of online gamblers, as well as the incomes of the online gamblers.

This author finds it interesting that while internet gaming sites saw over three million new registrants in the past year, the highly popular Facebook  service only saw a little over two million registrations. It should be noted that Facebook is a single website while the gaming website statistics cover multiple sites. This tends to show that gaming websites are not as monolithic in their appeal to consumers compared to some social media sites, but overall demand for online entertainment in the form of gaming seems to be high and steadily increasing. What was really interesting to this author was the fact that women appear to be significant players on online gaming platforms, at least in the UK:

It seems that around half of the online gamblers in the UK earn over £30,000 each year. Of all those gambling online in the United Kingdom, women make up 46 percent of the players. Hopefully for the women out there, this will give online gambling site more incentive to offer sites that appeal to women. While there are some of these sites out there, with the high percentage of female online gamblers, the market may be able to sustain even more of them.

Female players may pose interesting new challenges to online gaming websites as marketing strategies to attract such players would likely be different compared to the strategies employed to bring in new male players. It was encouraging to note that many of the players online come from a comfortable income bracket. That said, legitimate gaming operations ought to strive to eradicate problem gambling regardless of the income or assets of the players concerned.

Whether demand for online gaming in the UK will increase in the future remains to be seen. However, there are strong reasons to believe that demand can only increase as the world wide web continues to expand and new sites are added daily. Furthermore, new gaming markets may open up in the future which could result in an overall increase in global demand for such services.

For related information please see: online gaming lawyer.

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Those who read this blog regularly may note that we usually focus on matters which have an impact upon American Federal law. As the Congressional Session is about to begin anew, this author found an interesting piece regarding the regulation of online gaming in the United States of America. Those who are unfamiliar with current American gaming law should note that while gaming itself is not illegal under US Federal law, the methods of transferring funds to online gaming websites is restricted pursuant to provisions of the UIGEA (the Unlawful  Internet Gambling Enforcement Act of 2006). The ramifications of the UIGEA have yet to be fully explored as the law was passed in a rather unusual manner compared to legislation of a similar nature. Furthermore, some of the provisions of the law remain vague and regulations have yet to be fully implemented. This has lead to a rather precarious situation from a legal perspective. United States Congressional Representative Barney Frank has authored legislation aimed at allowing online gaming in a regulated environment. To quote a recent posting by Mr. Larry Rutherford on the website: casinogamblingweb.com: 

[T]he Congressional session in the US begins again in both the House and the Senate. One of the pieces of legislation that may be discussed is Representative Barney Frank’s online gambling bill. Online poker players and gamblers are urged to call their senators and representatives to support the bill.

Rep. Frank introduced HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act earlier this year. Before the recess of the House, the House Financial Services Committee passed Frank’s legislation. The next step will be to take the issue to the entire House, and then possibly on to the Senate.

For the process to get done in a timely manner, it is recommended that all online poker players, or anyone interested in seeing online gambling prohibition stopped, call their representatives in their jurisdiction. The more pressure that is put on these representatives, the better chance that Frank moves his bill along in the coming session.

To pass the law in the coming months is essential to the millions of Americans who currently engage in online gambling. In November, the political structure may change and Republicans may seize control of the House. If that occurs, it is likely that Rep. Frank would lose his Chair status in the House Finance Committee. Frank’s likely successor would be Rep. Spencer Bachus, one of online gambling regulation’s biggest opponents.

Proponents of regulated online gaming point to the numerous economic benefits which could be accrued through effective regulation of online gaming in the United States. This argument is ringing especially true in the USA as unemployment and other economic issues weigh heavily on lawmakers and the public at large. There are those who argue that regulated online gaming would create jobs and tax revenues for a Federal government that could use both. To quote the aforementioned posting further:

With only one month left before the mid-term elections, many analysts believe it is unlikely that Frank would move forward with the controversial issue leading up to the elections. Republicans could force Democrats into taking a position on Internet gambling, and then use that to gain leverage in many upcoming House battles.

Frank, however, may understand that if the climate changes and he is ousted as the Chairman of the Finance Committee, then the likelihood of gaining Internet gambling regulations will become slim. That fact alone may sway Frank to push hard for the regulations in the coming weeks.

It is unknown what the future holds for Frank’s bill, but one thing is certain, the millions of people who enjoy playing poker online need to be heard. CGW is encouraging everyone who wishes to have the online gambling laws changed in the US, to contact their representatives and senators in the coming days and have your voice heard.

This author does find logic in the argument that regulated online gaming may create major economic benefits for Americans and the Federal Treasury. That said, there are those who feel that it is unlikely that this legislation will be passed in this session of Congress. This Bill could have a significant impact on the American economy at a critical time, but there may not be enough political will to pass this legislation at this time. Online businesses continue to bring incredible opportunities to the United States of America. The internet is still a significant platform for all types of trade and commerce. This author can understand any government’s desire to regulate and monitor the activities of online gaming enterprises. However, the current state of affairs in the USA would seem to be virtually untenable from a legal standpoint as the law itself is somewhat vague on certain issues and enforcement of these rules could prove nearly impossible. Furthermore, there are multiple Constitutional issues which could be raised by those challenging the provisions of the UIGEA. Therefore, due to all of the uncertainty surrounding the online gaming industry in the USA, it may be time to promulgate rules which clearly and effectively regulate the US online gaming industry.

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