Internet Gambling Regulation, Consumer Protection, and Enforcement Act
Encyclopedia
The Internet Gambling Regulation, Consumer Protection, and Enforcement Act was a proposed 2009 bill in the United State House of Representatives that is intended "to provide for the licensing of Internet gambling activities by the Secretary of the Treasury, to provide for consumer protections on the Internet, to enforce the tax code, and for other purposes." The bill was originally introduced by Representative
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...

 Barney Frank
Barney Frank
Barney Frank is the U.S. Representative for . A member of the Democratic Party, he is the former chairman of the House Financial Services Committee and is considered the most prominent gay politician in the United States.Born and raised in New Jersey, Frank graduated from Harvard College and...

 (D
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...

-MA
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...

) on June 12, 2009 and as of July 20, 2009 had bipartisan support from 47 co-sponsors. The bill was held in the House Financial Services Committee
United States House Committee on Financial Services
The United States House Committee on Financial Services is the committee of the United States House of Representatives that oversees the entire financial services industry, including the securities, insurance, banking, and housing industries...

.

Description of the bill

The bill would have found the following:
  1. "Since the development of the Internet, millions of people have chosen to gamble online, and today Internet gambling is offered by operators located in many different countries under a variety of licensing and regulatory regimes."
  2. "Despite the increasing use of the Internet for gambling by persons in the United States, there is no Federal or State regulatory regime in place to protect United States citizens who choose to engage in this interstate activity, or to oversee operators to establish and enforce standards of integrity and fairness."
  3. "In the United States, gambling activities, equipment, and operations have been subject to various forms of Federal and State control, regulation, and enforcement, with some form of gambling being permitted in nearly every State and by many Indian tribes."
  4. "Internet gambling in the United States should be controlled by a strict Federal licensing and regulatory framework to protect underage and otherwise vulnerable individuals, to ensure the games are fair, to address the concerns of law enforcement, and to enforce any limitations on the activity established by the States and Indian tribes."
  5. That entities licensed to provide internet gambling in the United States would have to be heavily regulated and monitored.
  6. "There is a need to extend the regulatory provisions of this Act to all persons, locations, equipment, practices, and associations related to Internet gambling, with each State and Indian tribe having the ability to limit Internet gambling operators from offering Internet gambling to persons located within its territory by opting out of the provisions of this Act."


The bill then discussed the qualifications an organization would need to possess in order to operate an online poker site, legal requirements, fees and taxes, penalties, and regulations.

Had H.R. 2267 passed, it would have automatically created an exception for poker to the Unlawful Internet Gambling Enforcement Act of 2006
Unlawful Internet Gambling Enforcement Act of 2006
The Unlawful Internet Gambling Enforcement Act of 2006 is United States legislation regulating online gambling. It was added as Title VIII to the SAFE Port Act which otherwise regulated port security...

 (UIGEA). In the meantime, Frank also proposed another bill, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act (H.R. 2266) which would have delayed the full implementation of the UIGEA until 2010.

Reaction

On July 5, 2009, Frank addressed the players at the 2009 World Series of Poker
2009 World Series of Poker
The 2009 World Series of Poker was the 40th annual World Series of Poker . It was held at the Rio All Suite Hotel and Casino in Las Vegas, Nevada, and ran from May 27 to July 15. There were 57 bracelet events, culminating in the $10,000 No-Limit Hold'em Main Event...

 Main Event (day 1-c) concerning the status of this bill. During his address, he accused the Republican Party of being behind the Department of Justice's seizure of poker players' bank accounts
Southern District of New York Action Against Online Poker Players
The Southern District of New York Action Against Online Poker Players was a legal action taken by the Department of Justice in an effort to crack down on online poker. The action occurred around June 8, 2009, when the government ordered four banks to freeze over 34 million dollars in payments...

 in early June. After his address, Franks initiated the third day of the tournament with the words, "Shuffle up and deal."

Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...

issued a notice to its investors that online gambling would be legal in the U.S., and that the only question is when. They believe that the tax ramifications alone make the passage of regulated poker a foregone conclusion. "Were the market to be legalized," the Sachs report stated, "we believe that the size of the revenue opportunity could increase materially... Based on an assumption of 30% penetration of offline poker players and $300 gross gaming revenue (GGR) per player, we estimate that a legal poker market could be worth $3bn."
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