03 July 2007
The law may be changed where Americans were stopped from playing online.
The reasons why, read below:
Will the UIGEA be reversed, changed, or revised? Read below to find out our up to date details. You might be shocked at the major companies that are supporting Barney Frank and the bills presented to make this turn around.
Rep. Barney Frank, D-Mass, introduced a new bill to reform the UIGEA. The bill is IGREA- Internet Gambling Regulation and Enforcement Act. Congress held hearings on the bill in early June.
The bill, the Internet Gambling Regulation and Enforcement Act, was introduced by Rep. Barney Frank, D-Mass., in April. Congressional hearings on the feasibility of the bill were held in early June.
If passed it would reverse the bans from Internet Gambling passed by the USA to stop American banks and credit card companies from being used for online gambling.
Barney Frank’s bill would set terms to legalize, regulate, license and tax Internet Gambling. There is a great deal of stakes in the Frank bill.
The UIGEA bill was passed in October, after being attached to the Port Security Bill. Since Congress would sure vote to pass the Port Bill, it was sure to also pass the attached Internet Gambling bill. Ten years passed after first trying to stop the Internet Gambling with no avail.
As Barney Frank Quotes about the UIGEA: “one of the stupidest things I ever saw”. “I want to get it undone”. Frank also stated that “If an adult in this country with their own money, wants to engage in an activity that harms no one, how dare we prohibit it?” “Adults are entitled to do with their own money what they want”
Frank is chairman of the House Financial Services Committee. This committee oversees the activities of banks and credit card companies. Both of the companies have stated that they do not want to be considered as gambling police. Contributing to Frank’s 14 terms in Congress, the banks and credit card companies would no longer have to block transactions online as well as they would profit from the transactions.
The proposal is set so that American companies could legally run Internet casinos and gambling to accept United States customers. MGM Mirage Senior Vice President Alan Feldman has stated that “We would do so as quickly as we could”. “We would have it up and running with a year. I have to believe that major players and everyone will get involved at some level”. When ask if he was speaking of the major players in gambling, he responded “Yes”, but not just them. All major entertainment companies will get involved: Sony, Universal, Apple, Time Warner, and Columbia”. “It just seems logical that at some point they would find their way into the industry”.
Feldman also stated “That a family-oriented company such as Disney could get involved in opening an Internet Casino”. Feldman stated that “Disney has certain beliefs about its core brand structure that could prevent it” but stated that” They could always create a sub-brand, as they do with their movie company, Touchstone Pictures whom produces R-rated movies”
MGM Mirage had previously operated n Internet Casino from the Isle of Man in the British Isles. From 2001 through 2003, was open to the people in every country but the USA. Feldman said “The casino failed because of the ban”
MGM Mirage owns and operates several major Las Vegas casinos, which include: MGM Grand Mirage, Bellagio, Monte Carlo, Luxor, Treasure Island and Mandalay Bay.
Feldman said “Around 70 percent of the online wagering market is from the USA”. “That leaves only 30 percent of the market.” Not enough to be profitable”. Although under Frank’s proposal it would be Feldman says”.
MGM Mirage would operate its Internet Casino from Nevada, Feldman said, he also stated that “For the home state to get the tax benefits and that is the point”. In 2007 the Venetian Casino in Las Vegas has plans to operate from the Channel Islands and service United Kingdom only. They could possible turn more towards the USA market with what is still potential new law.
Several major casino corporations have made statements about Internet Gambling, to run from the United States. Ron Reese says “A casino run from the United States which Americans could patronize is surely something the company would be interested in, if it became legal”. Reese quotes “We see it as another opportunity to grow our business”.
Sen. Jon Kyl, R-Arizona co-sponsored the 2006 bill is speaking out against Frank’s bill. Kyl stated “Online poker is currently the most Addictive form of gambling activity among American youth”. He also stated “Online poker players are more likely to exhibit problem gambling symptoms than other types of gamblers, and half of the young people who gamble on the Internet displays signs of problem gambling.
Some web sites in the USA, which are legal, aren’t considered gambling sites because they will offer casino games to be played for free, so not financial risk to players. These sites have the key position to enter legal Internet gambling business in the US if it opened up, because they have already got the Internet infrastructure in place.
For instance: Triple Jack, operates in Coral Springs, Florida, which offers free online poker, with prizes as well as cash to the awarded winners. Triple Jack has been in business operation since 2005, and said to have more than 100,000 registered players.
David Finkelstein, chief executive officer of Triple Jack stated “The US Government is losing out on a lot of money (tax) by not allowing Internet gambling”. “European countries realized this and allow it.”
Robert Blagman co-owner of Media Options Inc. which is a Los Angeles ad agency, and have many clients that include some big hitters in the real money online poker business, such as foreign owned companies, River Belle Poker, 888 Poker, Full Tilt Poker and Party Poker .
Previously all four companies advertised in the USA before the UIEGA was passed. Blagman said “All of our online poker clients immediately stopped advertising in the USA”. This cost his agency more than $1 million in commissions.
Barney Frank’s House Financial Committee has focused on the effect of using new technologies to regulate Internet Gambling, as well as prevent any abuse by anyone underage. Frank gave no time limit on when he would expect the full House of Representatives or the Senate to take a vote on his bill.
Here you will find more on this article by the San Francisco Chronicle.
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14 May 2010Canadian Man Pleads Guilty in U.S. Online Gambling Charge
Douglas Rennick, a Canadian man, has pleaded guilty to a count of processing offshore bets of U.S. citizens. Originally Rennick was looking at a charge of conspiracy and bank fraud. He had allegedly laundered $350 million dollars for overseas internet gambling companies. Rennick was indicted in August and on Tuesday entered a guilty plea to the one charge in New York Federal court. Part of the plea was forfeiting $17.1 million and a possible prison term of 6-12 months.Read full article
29 May 2006Politics of US gambling makes for odd bedfellows
Politics of US gambling makes for odd bedfellows By Edward Alden in Washington Published: May 26 2006 22:36 | Last updated: May 26 2006 22:36 Financial Times Of the 50 states in the US, in only two – Utah and Hawaii – is it impossible to find a place to gamble legally. Casinos dot America’s landscape, from the neon palaces of Las Vegas to some 400 more modest facilities on Indian reservations.Read full article
27 June 2006New state online gambling law raises doubts
Monday, June 26, 2006 Seattle Post-Intelligencer / seattlepi.com New state online gambling law raises doubts Some legal experts say it’s too broad to hold up in court By BLYTHE LAWRENCE AND TRACY JOHNSON P-I REPORTERS Weeks after a new state law about online gambling took effect, some legal experts are questioning whether it would hold up in court. The new law echoes a federal law that already makes Internet gambling illegal and upped the crime to a felony.Read full article