Online Gambling Lobbyists Split on Which Bill to Support

Safe and Secure Internet Gambling Initiative Supports McDermott Bill

WASHINGTON, DC  -- The Safe and Secure Internet Gambling Initiative announced its support for the Internet Gambling Regulation
Poker Players Alliance  and Tax Enforcement Act, introduced today by Congressman Jim McDermott (D-WA). The bill would create a taxation regime for online gambling companies to be licensed under the recently introduced Internet Gambling Regulation and Enforcement Act (H.R. 2046).

As Congress works to find funding for critical government programs, Congressman McDermott's legislation is expected to generate between $6 billion and $25 billion in revenues for the U.S. Treasury in the first five years of enactment.

"The government should not be telling Americans what we can and can't do on the Internet," said Jeffrey Sandman, spokesman for the Initiative. "By prohibiting a popular, recreational activity that many millions enjoy in the comfort of their own homes, the U.S. is also losing out on the opportunity to collect billions in revenue."

Regulated Internet gambling would protect an individual's freedom to use the Internet as they choose, generate funding for critical government programs and protect against underage gambling, compulsive gambling, money laundering, identity theft and fraud. Current efforts to prohibit Internet gambling are futile. Americans continue to gamble online, but without safeguards and protections.

Congressman McDermott's legislation functions as a companion bill to the Internet Gambling Regulation and Enforcement Act, which would establish a licensing and enforcement framework for regulated Internet gambling in the U.S.

Under the licensing legislation, each Internet gambling operator licensed by the Financial Crimes Enforcement Network (FinCEN) would be required to pay a fee of two percent of all funds deposited by any person placing a bet. The license fee would be paid solely by the Internet gambling operator and would not be deducted from the deposit of the person placing a bet. Licensed operators would also be required to ensure the collection of applicable federal and state taxes from licensees and from individual gamblers.

Congresswoman Shelley Berkley (D-NV), who is also a co-sponsor of the Internet Gambling Regulation and Enforcement Act, recently introduced another Internet gambling bill. This increasing activity in Congress further indicates the growing interest and support for reform that allows American's the freedom to gamble online.

The Safe and Secure Internet Gambling Initiative is mobilizing supporters across the country to support regulated Internet gambling. Founders of the Initiative are the UC Group and Baker Tilly. Additional endorsers are highlighted on the Safe and Secure Internet Gambling Initiative Web site. The UC Group provides integrated payment processing services and logistical support to online product and service providers. Baker Tilly is an independent member of Baker Tilly International, the 8th largest accountancy network in the world by fees.

Poker Players Alliance Supports Wexler Bill

WASHINGTON, DC -- The Poker Players Alliance (PPA), a grassroots advocacy group of nearly 550,000 members, is enthusiastically supporting Congressman Robert Wexler (D-FL) legislation that clarifies existing law and provides rightful protections for poker and other games of skill under both the Unlawful Internet Gambling Enforcement Act (UIGEA) and the WIRE Act of 1961.

"Congressman Wexler's bill is a positive development for the millions of American poker players who enjoy one of our nation's great pastimes," Senator Alfonse D'Amato, PPA Chairman of the Board. "Poker and other games of skill have fallen victim to bad public policy. Wexler's plan will give skill games the rightful protection they deserve and it will require the proper safeguards to protect children and those prone to abuse."

The online gambling ban that Congress passed last year, UIGEA, created confusion as to whether or not it applies to skill games such as poker, chess, bridge, and mah jong. The Wexler plan clarifies existing law by recognizing that skill games -- games where individuals compete against each other -- are separate and distinct forms of gaming and should be afforded protection under the law. In addition, the bill goes further than the UIGEA to require real safeguards for consumers. The plan requires that Web sites use the best age verification technologies, provide services for problem gamblers and abide by monetary controls to detect and stop money-laundering activities. Currently, no form of Internet gaming (i.e. horse racing, lotteries and fantasy sports) is subject to these types of regulations under current law.

"Congressman Wexler's legislation is necessary to provide equitable treatment for true games of intellect and competitions among individuals," said Senator D'Amato. "This skill based competition is the true spirit of the game, and the reason for its popularity whether it is played at the World Series of Poker, over the internet or at your kitchen table. Americans have played poker responsibly throughout our history and the Wexler bill will ensure that the game is enjoyed for years to come."

The Poker Players Alliance is a nonprofit organization advocating on behalf of American poker players.