The Benefits of Regulating Internet Poker and HR 2267

Millions of Americans play poker on the Internet

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Internet poker is a worldwide phenomenon which has continued to grow for more than adecade. It is estimated that approximately 10 to 15 million Americans play Internet poker with some regularity.

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Internet poker has created thousands of online communities dedicated to discussing poker playing strategies, sharing news and information about poker and related games and other forums of free and open expression.

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Wagering on Internet poker is separate and distinct from traditional forms of casinogambling. In poker, individuals compete against each other based on their own skilllevels, and not the house (as in roulette, bingo, or sports wagering). This is truly a peer-to-peer, almost social networking, environment.

The U.S. has a responsibility to protect consumers who play online

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Currently, companies that offer Internet poker are licensed, regulated and taxed in their home country jurisdictions. However, the United States has failed to exercise oversightand control of Internet gaming even though the U.S. represents the largest percentage of Internet poker players worldwide.

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The millions of Americans who play Internet games of skill will benefit greatly from theadditional protections U.S. regulation can provide. Moreover, licensing and regulationwill help guarantee the proper safeguards for our nation’s most vulnerable populations.

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HR 2267 establishes the needed licensing and regulatory framework for the United Statesto exercise appropriate control and oversight over Internet poker and other gaming on theInternet.

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This oversight includes:

Thorough vetting of potential licensees; mandatory implementation of technologies to protect against underage gambling and to monitor and detect individuals withexcessive gaming habits; high standards to thwart fraud and abuse of customers; regulation to prevent money laundering; and, processes to prevent tax avoidance.

Current U.S. policy fails to protect Americans and provides no industry oversight

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The Unlawful Internet Gambling Enforcement Act (UIGEA) signed into law as part of the 2006 Safe Ports Act (Pub.L. 109-347) does nothing to prevent underage gambling or protect problem gamblers. Moreover, it fails to protect the millions of responsibleAmerican men and women who continue to enjoy Internet poker from the few “badactors” who choose to sacrifice their customers’ trust for short-term gain.