A last-minute attempt by the Bush Administration to push through the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) has prompted the Poker Players Alliance (PPA), the online poker industry’s chief lobbying group, to mobilize its members. On Monday, the organization issued an action alert via e-mail and on its website to its 1.2 million constituents.
A Dow Jones Newswires story published on November 6th revealed that on October 21st, the United States Treasury had sent the final regulations of the UIGEA to the Office of Management and Budget (OMB) to approve. The target date, according to the PPA, of OMB approval is November 19th, as the regulations will then enter a 60 day review period which would end just before President-elect Barack Obama is sworn into office on January 20th, 2009. Members of the PPA are urged to call the Board of Governors of the Federal Reserve at 202-974-7008 or Public Affairs at 202-452-2955.
According to the PPA’s website, callers are asked to make the following four points:
1. The federal agencies responsible for our nation’s economy should not be focused on Internet poker regulations.
2. Finalization of the UIGEA rules will add additional burdens on our already crippled financial systems.
3. Internet poker is a game of skill and form of recreation for millions of Americans; it should be exempted from the UIGEA.
4. Please do not finalize the UIGEA regulations until their impact on our banking systems and average Americans has been fully studied.
Recently, Congressman Barney Frank (D-MA), who has been at the forefront of the fight both to overturn and clarify the UIGEA, authored a letter to Henry Paulson, Secretary of the Treasury, and Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System. Frank’s letter to Bernanke, in part, read, “I strongly urge you not to burden the new Administration with administering a statute which cannot be carried out.”
Jeff Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative, commented in a press release distributed by the organization on Monday, “At a time when the financial system is in crisis, it is irresponsible for the Bush Administration to rush through a fundamentally flawed regulation that even representatives of the Treasury Department and Federal Reserve have stated on record is unworkable.” The Bush Administration is attempting a number of “midnight rules,” according to the PPA.
The UIGEA was pushed through Congress in 2006 and was ultimately attached to the SAFE Port Act, an unrelated port security measure. The bill was not discussed in the Senate and instead passed by unanimous consent during the final hours of the Congressional session. It was signed into law on Friday, October 13th, 2006.
Adding fuel to the fire this time around is the influence of William Wichterman, who is a Special Assistant to President Bush. A Safe and Secure Internet Gambling Initiative press release explains, “As recently as March 2008, Mr. Wichterman was a paid lobbyist for the NFL, which has been a strong opponent of all forms of Internet gambling except for fantasy sports – an activity that generates more than $1 billion a year in revenues.” Congressman Steve Cohen (D-TN) wrote a letter to White House Counsel Fred Fielding, which is dated November 7th, asking for an explanation of Wichterman’s involvement.
In September, Frank managed to pass HR 6870, the Payments System Protection Act, out of the House Financial Services Committee. The bill seeks to clarify what the UIGEA deems to be “unlawful internet gambling” by drawing up a list of what is and is not allowed. It was passed by a 30-19 vote on September 16th, but was not discussed on the House floor, in part due to adjournment for general elections as well as the financial crisis in the United States and around the world.
Comments to the Federal Reserve can also be submitted online. Visit the PPA website for more information.
