New Jersey Democrat to launch new bill Thursday
A new bid to license and regulate online poker will be launched today (Thursday) by New Jersey Democrat, Senator Robert Menendez, a member of the senator’s staff told the Dow Jones news service this week.
The proposal - S 8309, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act - seeks to create a regulatory framework allowing online poker companies to register in the U.S. and subject to taxation and stringent regulation that includes consumer protections relating particularly to age verification, fair gaming, the prevention of fraud and money laundering, and problem gambling. There will also be requirements to ensure that the player is logging in from a jurisdiction where gambling is legal.
Taxation provisions of 10 percent on all deposits made by players to gambling sites are envisaged, with the proceeds split evenly between the state and federal governments.
One of the most vocal proponents of lifting the online gambling ban is the banking industry. Banks say the existing rules don’t define what types of gambling are illegal, leaving them unsure whether to reject individual transactions. In some parts of the country, for example, betting on horse racing is legal, but in others it isn’t, reports Dow Jones.
The difference between the Menendez bill and HR2267 introduced in May this year by Representative Barney Frank is that the former applies only to online poker and other “games of skill,” while Frank’s legislation aims to regulate other forms of gambling, including sports betting and online casino action.
Both bills have been careful to respect the rights of individual states when it comes to gambling laws autonomy.
UPDATE:
Senator Menendez introduced his bill , and was applauded by Poker Players Alliance chairman, former Senator Alfonse D’Amato, who said: “The PPA is pleased that Senator Menendez chose to introduce his bill to license and regulate Internet poker and include additional consumer protections. His continued support for protecting the Internet freedoms of poker players specifically, and Americans generally, is greatly appreciated.
“Today’s action by Senator Menendez is yet another powerful step towards protecting Internet freedom, protecting consumers and protecting online poker. On behalf of the members of the PPA and online poker players nationwide, I thank Senator Menendez for his leadership on this important issue.”
Key provisions of the bill include:
• Creation of a registry of unlicensed online gambling operators that will strengthen enforcement efforts of truly unlawful gambling;
• Mandatory implementation of technologies to protect against underage gambling and to monitor and detect individuals with excessive gaming habits;
• Dedicated funding to develop and implement prevention and treatment programs for problem gamblers;
• Mechanisms to collect the billions of dollars in tax revenue that is currently being lost; and
• Clarification of the Wire Act to create consistency in how online gambling activities, such as horse race betting, are treated under Federal law.