In a recent letter authored by Poker Players Alliance (PPA) Chairman Alfonse D’Amato to The Hill, the former three-term Senator from New York forecasted bipartisan support for Congressman Barney Frank’s (D-MA) upcoming internet gambling legislation.
In a recent interview with The Hill, Frank alluded to introducing legislation favorable to internet gambling next week after Congress returns from its Easter recess. During the break, the PPA, the main lobbying organization for the poker industry, has gone on the offensive, headlined by D’Amato’s recent contribution to The Hill. The PPA surpassed the one million member mark last year in part due to the visibility and involvement of the former high-profile Senator.
D’Amato claims that both Democrats and Republicans have reason to disapprove of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was attached to the SAFE Port Act and passed during the waning moments of the 2006 Congressional session. He noted in his letter to The Hill, “It does nothing to prevent children and problem gamblers from playing online; it overly burdens the banks, making them, not the federal government, policemen of the internet; it costs the taxpayers billions in unearned revenue, not to mention the loss of capital and jobs when these companies are forced to move out of the U.S.; and it’s simply unenforceable.” The UIGEA was not debated in the Senate; instead, the SAFE Port Act was passed by unanimous consent.
Frank was originally slated to introduce internet gambling legislation in March. However, a faltering economy has delayed the announcement of a bill that may outline a complete licensing and regulatory framework for the industry. The previous version was HR 2046, the Internet Gambling Regulation and Enforcement Act. It was introduced in 2007, but was not enacted into law. According to D’Amato, “Both conservatives and liberals alike know that UIGEA was simply a bad bill turned into worse policy, and it must be redone in order to put a more effective system in place.”
Frank’s two previous attempts to clarify the UIGEA both came with bipartisan support. The Massachusetts Congressman and former Republican Presidential Candidate Ron Paul sponsored HR 5767, the first version of the Payments System Protection Act. The bill was struck down in the House Financial Services Committee, of which Frank is the Chairman, last June. An amendment introduced by Congressman Peter King (R-NY) that called for a list to be developed of what was illegal and legal under the UIGEA failed by virtue of a 32-32 tie vote. The bill itself was then put to an oral vote, where the “Nays” outweighed the “Yays.”
HR 6870 marked the second version of the Payments System Protection Act. It was passed by a 30-19 vote in Committee last September. King once again spoke on behalf of the bill in its mark-up hearing, as did Congressman William Lacy Clay (D-MO). King was its lone co-sponsor, but despite bipartisan support, HR 6870 did not see time on the House floor due to the then-emerging financial crisis. A study recently released by PricewaterhouseCoopers noted that up to $52 billion could be generated by regulating and taxing the internet gambling industry over a 10 year period, although that figure relies heavily on the involvement of professional sports leagues.
The PPA held fundraisers at both the Democratic and Republican National Conventions prior to the general elections in the United States last year. In addition, the organization hosted a booth at the Conservative Political Action Conference in February. D’Amato concluded his call for bipartisan legislative support saying, “Now is the time to do what’s right for all interested parties, not based on party politics. That means protecting internet freedom and the public interest through taxation, licensing, and regulation – not prohibition.”
