Details on Barney Frank's Online Gambling Bill Released
06 May 2009
Wow, this looks great. The “Internet Gambling Regulation Consumer Protection & Enforcement Act regulation” (say that 10 times fast!) details were released today, and what this bill proposes is awesome.
With the safeguards in place (listed below,) I really don’t see how this bill wouldn’t pass with flying colors.
Key Points include:
- The bill proposes issuing licenses to operators who are ‘‘in good financial and legal standing and of good character, honesty, and integrity” and “whose prior activities, reputation, habits and associations do not pose a threat to the public interest or to the effective regulation and control of of the licensed activities.”
- Operators will have to demonstrate that they have sufficient expertise in online gambling and sufficient financing to take bets, and that they have the systems and technology in place to combat money laundering and fraud, enforce relevant federal, state and Indian tribal laws including tax collection on bets, and to protect children and problem gamblers.
- The proposed licenses would last for five years. Anyone would be able to apply for a license provided they meet the conditions above and that they provide their financial statements, and the criminal and credit histories of directors.
- The document proposes that the exact procedures for running background checks will be decided by the Secretary of the Treasury later. The Secretary will be charged with approving and monitoring licensees, and may call on the Attorney General to compel compliance.
- The bill would provide Treasury the authority to terminate the licenses of operators who fail to comply with the bill’s provisions, as well as to imprison them for up to five years.
I especially love #4. I can guarantee you that no rogue operation would even think about applying for a license when they know that their background will be investigated. This will protect players to the utmost extent.
The rest of the story…