The House Financial Services Committee voted today to defeat H.R. 5767, a bill that would prohibit the U.S. Treasury and Federal Reserve from finalizing the proposed regulations for the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). Also known as the “Payment Systems Protection Act,” the bill is co-sponsored by Congressmen Barney Frank (D-MA) and Ron Paul (R-TX), and it failed to pass by a vote of 32-32.
The following is a response issued by former Senator and current chairman of the Poker Player’s Alliance (PPA) Alfonse D’Amato:
“The PPA is surprised that the Financial Services Committee today failed to clarify what constitutes ‘unlawful Internet gambling’ under the Unlawful Internet Gambling Enforcement Act (UIGEA). The King Amendment would have required a separate formal rulemaking with an administrative law judge to determine the definition of unlawful Internet gambling.
“The Federal Reserve, Department of Treasury, and the banking industry have all testified before Congress that the lack of a definition of ‘unlawful Internet gambling’ makes it extremely difficult, if not impossible, to enforce this law and would result in a broader review and denial of financial transactions because they could possibly be deemed unlawful under the UIGEA.
“It is disappointing to realize that opponents of this legislation still do not truly understand the intent of the bill. It was clear today that those who oppose this bill chose to focus on emotional and non-germane issues, such as the harmful impact of gambling on children, instead of on the merits of the bill itself.
“As it stands, the UIGEA is a completely unworkable and unenforceable bill that would do little to address the main concerns of its sponsors — namely, protecting underage and compulsive gamblers, as well as cracking down on money laundering. To truly address these issues, the PPA firmly believes that Congress should implement thoughtful and effective regulation of the online gambling industry as opposed to outright prohibitions, which history has shown do not work.
“Unfortunately, debate over the morality of gambling trumped debate on the fact that the UIGEA is completely ineffective and unenforceable.”
