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Barney Frank's Poker Hearing Concludes Without A Vote

Committee Will Continue Discussion of the Bill in 2010

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Rep. Barney FrankIn a sparsely attended hearing Thursday morning, Rep. Barney Frank delivered the case for the regulation of the online gaming industry. The 90-minute hearing featured several expert witnesses and questioning from a handful of members of the House Financial Services Committee. No committee vote was taken, and Rep. Frank concluded the meeting, saying, “We will be returning to this subject next year.”

The meeting was mostly informative, as various panel experts explained their background, what stance their organization held on Frank’s bill to regulate the industry, and answered questions. However, it was sometimes contentious, as Rep. Frank and Rep. Spencer Bachus (R-AL) traded their very opposing viewpoints.

Rep. Frank opened the hearing with a statement on the necessity of regulation, and reiterated his belief that Congress was wrong to originally pass the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, a law that makes it difficult for payment processors to transfer money to online gaming sites.

“I continue to believe that it is a great mistake for the Congress of the United States to tell adults what to do with their own money on a voluntary basis,” said Rep. Frank, the chairman of the committee.

Rep. Spencer BachusRep. Bachus, the ranking minority member of the committee and a staunch opponent of Frank’s bill, said that the chairman’s bill would undercut the committee’s past efforts to protect children.

“I believe that Internet gambling is, has been, and will continue to be a substantial threat to our youth … It leads to addiction, bankruptcy, and crime,” said Rep. Bachus.

Rep. Bachus also shared some of the contents of a letter he received from an official of the FBI’s cyber division, which claimed that “there are several ways to cheat at online poker,” specifically referencing potential collusion by players at a table. Shawn Henry, the assistant director for the division, did acknowledge that poker sites had the capability to detect such cheating, saying, “The online poker vendors could detect this activity and put in place safeguards to discourage cheating, although it is unclear what the incentive would be for the vendor.”

The Poker Players Alliance blasted the claim a few hours later in a press release entitled, “PPA: FBI Letter Wrongfully Cites Online Poker Myths, But Underscores Need for Licensing and Regulation.”

“Every concern the letter raises is better addressed by licensing and regulation than by prohibition,” said John Pappas, the Poker Players Alliance executive director. “The letter misconstrues much about the current state of online poker, but it does so in a way that clearly makes the case for why federal oversight is necessary.”

The committee called upon seven witnesses during the hearing: Robert Martin, the tribal chairman of the Morongo Band of Mission Indians; Parry Aftab, the executive director of WiredSafety; Malcolm K. Sparrow, of John F. Kennedy School of Government at Harvard University; Keith S. Whyte, the executive director of the National Council on Problem Gambling; Jim Dowling of the Dowling Advisory Group; Samuel A. Vallandingham, the chief information officer and vice president of The First State Bank on behalf of the Independent Community Bankers of America; and Mike Brodsky, the executive chairman of Youbet.com.

Martin, whose tribe has independently pursued intrastate online poker in California, was the only person on the panel who officially opposed Frank’s call for federal regulation.

Parry AftabPerhaps the most persuasive testimony in support of online poker regulation came from Ms. Aftab, who admitted she had qualms with online gaming and even went so far as to commend the efforts of Rep. Bachus. But she said that her experiences have led her to support Rep. Frank’s bill.

“I get about a thousand e-mails a day from people who come to us for help, and many of those are relating to online gambling,” said Aftab. “It is particularly interesting, and I call it ironic, that I am sitting here today, saying that the only way to protect consumers from online gambling risks is by legalizing it. I never thought I would ever say such a thing, but if we don’t legalize it, we can’t regulate it.”

Aftab said the current policy on online gaming is flawed, saying it represents a “hear no evil, see no evil” strategy.

After each witness testified and answered questions from the members of Congress in attendance, Rep. Frank adjourned the meeting and said that Congress would continue the conversation after the New Year.

 
 
 
 

Comments

permanentilt
over 7 years ago

Republicans are such morons, the ONLY way to protect our children is through LEGALIZATION and REGULATION. Be it online gambling or marijuana.

 
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TheDeputy02
over 7 years ago

Permanentilt: Rep. stands for "Representative" not "Republican," if you knew anything at all you would know that Barney Frank is one of the biggest Libs out there. If they were denoting party affiliation in this article, they would've typed: "Rep. Barney Frank (D)"

 
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omegacrep
over 7 years ago

lol. I guess the house of representatives is all republican now. Funny how little poker players know about anything outside of their bubble.

 
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demonspawn
over 7 years ago

TheDeputy02, I believe permanentilt was referring to Rep. Bachus, who is, in fact, a Republican, and Rep. Bachus' stand that online gambling should be illegal. I agree that the article doesn't make Bachus' affiliation clear (which it probably should), but I agree with permnaentilt's statement that online gaming should be legalized and regulated, so that adults in the land of the free and the home of the brave can play poker online with their own money if they want to. Do you agree?

 
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Sazzle
over 7 years ago

To TheDeputy02... Permanentilt is referring to what has long been a stubborn stance by the conservative right to outlaw and prohibit anything that they perceive to be a sin to their almost entirely christian constituency. Rep. Bachus is a republican, as denoted by (R-AL) Republican - Alabama.

A 4th grade reading comprehension level is required.

 
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Scootsy
over 7 years ago

The government should not play the role of parent. I raised a son, monitored what he saw on the Internet and now he's a responsible adult. I don't need to government to tell me what I can and can't see when I'm online -- or what I can play. This is a further eroding of our rights, and if we don't stop it now, it will continue. And frankly, yes, Republicans tend to be the party looking to take away our rights.

 
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problempoker
7 years ago

Ethel, LLC, the owner of ProblemPoker.com, a website that helps those affected with online gambling addiction comments on the proposed Intrastate Gambling Bill. ProblemPoker.com has been successfully providing their Gambling Addiction help services since early 2006, and California’s consideration of legalizing online gambling causes some concern.

Two major safeguard that are known to prevent individuals from gambling online is the legality of gambling online, and the concern of Internet scam websites that could essentially steal money from an individual’s account. These concerns have been reinforced through Ethel, LLC’s many interactions with gambling addicts and during numerous corporate visits to various gambling addiction wellness centers throughout the country. It is the opinion of Kevin Jones, Director of Marketing, “…if the state decides to legalize online gambling, gambling reduction software like ours should have a presence in order to blunt the negative social concerns that such legalization would cause.”

Ethel, LLC does not take a position on legality of gambling. Nevertheless, the Company believes that support services and State funding must be provided to treat the thousands of individuals adversely affected by gambling.

 
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