|
Written by Thomas Jensen
|
|
Wednesday, 23 April 2008
|
 Momentum to overturn the Unlawful Internet Gambling Enforcement Act is in full steam on Capitol Hill this month. The Chairman of the House Committee on Financial Services, Barney Frank, and other leading committee members are seeking broad support for new legislation that would stop the U.S. government from taking any steps to implement regulations that require U.S. financial institutions to police Internet gambling. Testimony before Congress earlier this month clearly showed that the proposed rules to implement the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) are ambiguous and also not likely to stop millions of Americans from gambling online.
“Representatives from the regulatory agencies themselves admitted that there are substantial problems in crafting regulations to implement the UIGEA in a manner that does not have a substantial adverse effect on the efficiency of the nation’s payment system,” wrote House Committee on Financial Services Chairman Barney Frank (D-Mass.), Ranking Member Ron Paul (R-Texas) and committee members Luis V. Gutierrez (D-Ill.) and Peter King (R – N.Y.) in a letter sent to all members of Congress.
H.R. 5767 was introduced by Reps. Frank and Paul on April 10. It would prohibit the Department of the Treasury and Federal Reserve System from proposing, prescribing or implementing any regulations required by UIGEA.
“These bi-partisan congressional leaders understand that the proposed regulations can’t work. Their legislation would relieve U.S. financial services companies from the burden of policing the Internet and implementing a ban on Internet gambling that is doomed to fail,” said Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling Initiative. “U.S. financial services companies should be focusing their undivided attention on the economy, not trying to stop people from exercising their freedom to use the Internet to play poker, bet on horses, or engage in other types of gambling activities.”
Earlier this week, Reps. Frank, Paul, Gutierrez and King called on the Department of the Treasury and Federal Reserve System to cease implementation of regulations related to UIGEA. In letters addressed to Treasury Secretary Henry M. Paulson, Jr. and Federal Reserve Chairman Ben S. Bernanke, they wrote, “Given the many other priorities that are pending at your agencies…we believe it would be imprudent for you to devote additional agency resources to this Sisyphean task.”
Representatives from the Credit Union National Association, Financial Services Roundtable, American Bankers Association and Wells Fargo & Co. testified about the burden they would unnecessarily face before the House Committee on Financial Service’s Subcommittee on Domestic and International Monetary Policy, Trade, and Technology on April 2. They testified that both UIGEA and the proposed regulations were so ambiguous that they made it impossible to determine what may or may not be illegal activities.
Their comments reflect the concerns echoed in the more than 200 comments submitted to the Department of the Treasury and Federal Reserve System.
Frank introduced legislation last year, the Internet Gambling Regulation and Enforcement Act (H.R. 2046), that would regulate Internet gambling. The bill would require licensed Internet gambling operators to put in place safeguards to protect against underage and compulsive gambling and ensure the integrity of financial transactions.
A companion piece of legislation to the Frank bill introduced by Rep. Jim McDermott (D-WA), the Internet Gambling Regulation and Tax Enforcement Act of 2008 (H.R. 5523), would ensure the collection of taxes on regulated Internet gambling activities. According to a tax revenue analysis prepared by PricewaterhouseCoopers, taxation of regulated Internet gambling is expected to generate between $8.7 billion to $42.8 billion in federal revenues over its first 10 years.
A copy of the letter on H.R. 5767 can be found at:
http://www.safeandsecureig.org/media/hr5767.pdf
About Safe and Secure Internet Gambling Initiative
The Safe and Secure Internet Gambling Initiative promotes the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions. For more information on the Initiative, please visit www.safeandsecureig.org. The Web site provides a means by which individuals can register support for regulated Internet gambling with their elected representatives. |
|
Last Updated ( Wednesday, 23 April 2008 )
|
|
|
Written by Thomas Jensen
|
|
Monday, 21 April 2008
|
 Bodog Entertainment Founder and billionaire playboy Calvin Ayre has officially announced his retirement from the internet gambling industry effective immediately. Ayre’s role with the company over the last several years has been one of a Brand Ambassador for Bodog and he will no longer be involved with the company operationally.
In mid 2007 Ayre successfully transferred ownership of the Bodog brand in North America to the Morris Mohawk Gaming Group. Internationally, Bodog has put in place a very competent and significantly European executive team that is already managing Bodog Europe and Africa and plans to further expand to Latin America.
Ayre will be taking some time to himself in his home in Antigua and will continue to support charitable opportunities through the Calvin Ayre Foundation.
Calvin noted on his blog that, “While it has been great fun to live my life in front of the world’s cameras and online though my blog, I am looking forward to a more private and meaningful period of giving back and working to support the Calvin Ayre Foundation.” |
|
|
Written by Thomas Jensen
|
|
Friday, 11 April 2008
|
 The Safe and Secure Internet Gambling Initiative (SSIGI) announced its support for new legislation, H.R.5767, that would prohibit the Department of the Treasury and Federal Reserve System from proposing, prescribing or implementing any regulations related to the current ban on Internet gambling, as required by the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). The bill was introduced yesterday by Reps. Barney Frank (D-Mass.) and Ron Paul (R-Texas).
”The Frank-Paul bill would stop the U.S. government from taking any further steps on regulations that would require all of the country’s financial institutions to block Internet Gambling payments” said SSIGI spokesman Jeff Sandman. “It’s a bold move, but a necessary one, in light of the warnings from the Treasury and Federal Reserve that they did not know how to write regulations to solve the problems created by UIGEA. Further, witnesses representing a broad spectrum of the financial services community unanimously stated that the current ban on Internet gambling is dangerous to the payments system and ineffective in stopping people from using the Internet to play poker, make bets on horses, or engage in other types of wagering.”
The current Internet gambling ban creates significant additional burdens for U.S. financial institutions, which say that it is unfair to turn them into the Internet gambling police at a time when their undivided attention ought to be on the economy.
Testimony before Congress last week offered proof that financial services institutions would face serious regulatory burdens in attempting to enforce UIGEA and related regulations, which is unlikely to stop millions of Americans from gambling online.
Representatives from the Credit Union National Association, Financial Services Roundtable, American Bankers Association and Wells Fargo & Co. testified about the burden they would unnecessarily face before the House Committee on Financial Service’s Subcommittee on Domestic and International Monetary Policy, Trade, and Technology on April 2. The current UIGEA law is ambiguous and allows for multiple interpretations of what may or may not be illegal activities.
Their comments reflect the concerns echoed in the more than 200 comments submitted to the Department of the Treasury and Federal Reserve System.
Frank introduced legislation last year, the Internet Gambling Regulation and Enforcement Act (H.R. 2046), that would regulate Internet gambling. The bill would require licensed Internet gambling operators to put in place safeguards to protect against underage and compulsive gambling and ensure the integrity of financial transactions.
A companion piece of legislation to the Frank bill introduced by Rep. Jim McDermott (D-WA), the Internet Gambling Regulation and Tax Enforcement Act of 2008 (H.R. 5523), would ensure the collection of taxes on regulated Internet gambling activities. According to a tax revenue analysis prepared by PricewaterhouseCoopers, taxation of regulated Internet gambling is expected to generate between $8.7 billion to $42.8 billion in federal revenues over its first 10 years.
The Safe and Secure Internet Gambling Initiative promotes the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions. For more information on the Initiative, please visit www.safeandsecureig.org. The Web site provides a means by which individuals can register support for regulated Internet gambling with their elected representatives. |
|
Last Updated ( Friday, 11 April 2008 )
|
|
|
Written by Thomas Jensen
|
|
Thursday, 10 April 2008
|
 Lively debates are expected at the fourth European Gambling Briefing (EGB), taking place from 13 - 14 May 2008 in Amsterdam. EGB is already established as an essential part of the gaming events calendar, focusing on legal and regulatory issues for both the online and land-based industries. The conference will address the practical ramifications of these issues for operators and suppliers building an international gambling business.
A key debate will take place between Christofer Fjellner MEP, Sweden and Joel Hasse Ferreira MEP, Portugal on day one of the conference. These two politicians take a different approach to global gambling laws and visitors can expect an interesting and lively exchange of views. Whilst both support a socially responsible attitude, Fjellner believes that many EU jurisdictions are taking action which results in the violation of the freedom to provide services.
Fjellner’s appearance is particularly timely as Sweden, normally criticised by the European Commission for its stance on protectionism of its State Monopoly in gambling, has recently made a surprise legal u-turn. It has recognised that a Swedish law regarding online gambling advertising may well contravene European legislation.
The gaming industry continues to make the headlines in other areas, as in another recent development the French Tennis Federation is attempting to control betting outside stadiums during May’s French Open. This move, if successful, could set new precedents for case law in the industry, and is being monitored with great interest by lawyers and operators alike.
The gaming industry is frequently in the consumer press in a less than positive light and Bwin has confirmed that Karin Klein, Head of Regulatory Affairs for the EU, will be a panelist at the EGB conference discussing how the gambling industry can tackle this poor public perception and what operators and lobbyists can do to improve gambling’s image overall.
These and other key issues will shape debate at EGB, which will once again deliver serious, senior-level analysis and bring together the most influential politicians, regulators, lawyers and operators from Europe and beyond to tackle the many debates concerning the industry. Some of the topics under discussion include cross-border competition, the role of the European Union and European Court of Justice and opportunities in emerging European territories such as Asia, South America and Eastern Europe.
As well as the MEPs and Bwin’s Klein, speakers include Edward Feehan from the European Commission, regulators from Norway, Denmark, Gibraltar, Latvia and Alderney and lawyers from key jurisdictions such as the Netherlands, Sweden, Germany, France, Italy and Spain. These speakers will be contributing to the most comprehensive analysis of the legal and business issues shaping European gaming.
As well as high-level content, participants will enjoy plenty of networking opportunities, with a welcome drinks reception on 12 May (sponsored by Dutch law firm Van mens Wisselink) and a gala party on 13 May hosted by Holland Casino. The event looks set to exceed last year’s total of 150 attendees.
Clarion Gaming is the first choice provider of quality information, events and services to the global gaming, gambling and betting industries. It is dedicated to supporting the industry - whether traditional or new, supplier or buyer, trade association or government department. Clarion Gaming’s ongoing goal is to maintain its position of leadership both within the industry and in representing the industry to the business community at large, providing world class customer service in the process. |
|
Last Updated ( Wednesday, 09 April 2008 )
|
|
|
Written by Thomas Jensen
|
|
Wednesday, 02 April 2008
|
 Expert testimony to Congress today offered further evidence that the ban on Internet gambling won’t work. Witnesses unanimously agreed that U.S. financial service companies would face serious regulatory burdens in attempting to enforce the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), a law that is not likely to stop millions of Americans from gambling online.
“Testimony from the federal regulators and representatives of the financial services community made clear today that the prohibition on Internet gambling isn’t working now and will not work in the future,” said Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling Initiative. “U.S. banks and credit card companies, along with every other type of U.S. company involved in payment systems, would be forced spend substantial resources to force compliance with a ban on Internet gambling that can be easily circumvented by anyone in the U.S. that wants to continue to gamble online.”
Representatives of the U.S. Department of the Treasury and Federal Reserve System acknowledged at the hearing the challenges U.S. financial institutions will face in attempting to comply with UIGEA. Since most payment systems are not well designed to comply with this law, “it will be very difficult to shut off payment systems for use of Internet gambling transactions,” said Ms. Louise Roseman, Director, Division of Federal Reserve Bank Operations and Payment Systems, Board of Governors of the Federal Reserve System. "The implementing statute will not be iron clad at all."
Representatives from the American Bankers Association, Financial Services Roundtable, Wells Fargo & Co. and Credit Union National Association unanimously opposed regulations proposed to implement UIGEA in testimony to the House Committee on Financial Service’s Subcommittee on Domestic and International Monetary Policy, Trade, and Technology. They all questioned the fundamental approach taken by Congress in enacting legislation to force financial institutions to police online gambling.
“The UIGEA and the Proposed Rule do not provide a rational path towards halting unlawful Internet gambling,” said Wayne Abernathy, American Bankers Association’s executive vice president of financial institutions policy and regulatory affairs. “The path leads to an increased cost and administrative burden to the banks and an erosion in the performance of the payments system, but it will not result in stopping illegal Internet gambling transactions. Imposing this enormous unfunded law enforcement mandate on banks in place of the government’s law enforcement agencies is not likely to be a successful public policy.”
Mr. Leigh Williams, president of the technology division of the Financial Services Roundtable stated in his testimony concerns that enforcement of the proposed rules “could impose significant compliance burdens on financial institutions by increasing their role in policing illegal activities, determining whether a transaction is illegal, or by imposing ambiguous compliance requirements that could be subject to wide variations in interpretation by regulators and law enforcement agencies. We believe these functions are more appropriate for law enforcement agencies.”
The testimony supports over 200 comments submitted to the Department of the Treasury and Federal Reserve System on the burden and ambiguity in the proposed rules to implement UIGEA.
“Rather than trying to implement a ban that is unclear, burdensome and doomed to fail, Congress should instead look to regulate Internet gambling in order to protect consumers and collect billions of dollars that is being lost to offshore Internet gambling operators,” added Sandman.
Congressman Barney Frank (D-MA) introduced the Internet Gambling Regulation and Enforcement Act (H.R. 2046) last year, which establishes a regulatory and enforcement framework for licensed gambling operators to accept bets and wagers from individuals in the U.S. It would include a number of built-in consumer protections, including safeguards against compulsive and underage gambling, money laundering, fraud and identity theft. States would also have the right to control what, if any, level of Internet gambling is permissible within their borders and could apply additional taxes and restrictions.
A companion piece of legislation to the Frank bill introduced by Congressman Jim McDermott (D-WA), the Internet Gambling Regulation and Tax Enforcement Act of 2008 (H.R. 5523), would ensure the collection of taxes on regulated Internet gambling activities. According to a tax revenue analysis prepared by PricewaterhouseCoopers, taxation of regulated Internet gambling is expected to generate between $8.7 billion to $42.8 billion in federal revenues over its first 10 years.
Testimony provided at the hearing can be found at:
http://www.house.gov/apps/list/hearing/financialsvcs_dem/hr040208.shtml
The Safe and Secure Internet Gambling Initiative promotes the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions. For more information on the Initiative, please visit safeandsecureig.org. The Web site provides a means by which individuals can register support for regulated Internet gambling with their elected representatives. |
|
Last Updated ( Wednesday, 02 April 2008 )
|
|
|
