ONLINE POKER FOR US PLAYERS

In early 2006, the Republican led Congress of the United States, backed by the President, effectively made it illegal for American citizens to gamble online and for online casino or poker rooms to deal with American clients. This ban resulted in many big poker rooms and online casinos shutting down their dealings with American clients. Other sites found loopholes to get around the ban. It may all be moot. In late April 2007, Congressman Barney Frank of Massachusetts introduced new legislation that would make it legal for American citizens to wager online, thus returning online gaming to the states. The U.S. now has a Democratically controlled Congress and many people think the IGREA bill will pass, no problem.

The IGREA Bill

The Internet Gambling Regulation and Enforcement Act of 2007 (IGREA) will return gambling to the U.S., but with strict new rules of enforcement. The new act promises to regulate gaming, something that has never occurred in the history of online gambling. For years, online casinos and poker rooms have been able to reap huge profits without having to pay taxes just because they were based offshore. The IGREA legislation, if it passes, promises to put an end to that anarchy.

The bill promises to introduce stringent new regulations to the online gambling industry that will make it hard for new start up sites, and favor the big titans in the industry, like Bodog, and the Party Gaming network. For example, the new law will force companies to go through comprehensive background screenings. In addition, online gambling businesses can expect to deal with complex licensing agreements, as well as strict taxation. Many online gambling companies were hoping that the new law would simply reverse the old law, and it would be back to business as usual. That is not the case.

The Breakdown of the Bill

The IGREA bill promises that all online operators set up safeguards to protect against fraud and compulsive gambling. Also, there will be strict regulations ensuring that all players are over the age of 18. Also, gaming operators need to locate themselves in a jurisdiction that permits the form of Internet gambling. The new law, if it is passed, may change considerably. Still, as of this writing, it seems like the new law bodes well for American players, and tax payers, in general.

A Few Thoughts

Gambling is legal in many states in the form of pari-mutuals. Many states also have Indian based land casinos. Then, there's Las Vegas and Atlantic City, where gambling is completely legal. Not to mention people are still playing online. Why not legalize online gambling and generate tax revenue? It makes sense, and that's why the bill is likely to pass.