Internet gambling has been thrown under the bus by the Republican leadership in the United States. Congressman Spencer Bachus (R-AL), who has been directing the opposition to the return of the industry to the United States, has claimed that allowing online poker to exist will do nothing more than bring this social ill right into our children’s bedrooms. Congressman Jim McDermott (D-WA) has struck back, introducing HR 6501 on Wednesday. The bill offers up to $40 billion over the next ten years to individuals currently or previously in foster care as well as workers in declining economic industries. With this new money, these individuals can seek out job training and secondary education opportunities in order to improve their skills in the workplace. All of the money comes from taxation of the internet gambling industry in the United States, assuming Congress decides to regulate it.
A letter sent from McDermott to his fellow Congressmen asserts, “Critical needs in America are going unmet. A sign of a well-functioning society is the opportunity for upward economic mobility, particularly for those on the lower rungs of the economic ladder. Americans need new opportunities in a transitioning economy: opportunities like job training for workers learning new skills, and educational assistance for foster children.” This is the first time that the money which could be derived from the internet gambling industry has ever had a tangible purpose. In this case, these are two populations who are most likely near and dear to McDermott’s heart. Both will reap the full benefits from the multi-billion dollar internet gambling industry.
Michael Waxman, Spokesperson for the Safe and Secure Internet Gambling Initiative, commented to PokerNewsDaily, “McDermott’s new legislation is an important step in the effort to regulate internet gambling. We are now finally entering into a conversation about where the new revenue that would be created can be used. The bill seeks to support many Americans who need the government programs that would be funded.”
The timing of the bill’s introduction comes just weeks after HR 5767, a bill by Barney Frank (D-MA) and Ron Paul (R-TX) that would have halted the Unlawful Internet Gambling Enforcement Act’s regulations from being implemented, was defeated in a House Financial Services Committee markup hearing. Waxman talks about when he first found out about the new bill: “I only recently found out about McDermott’a bill, but I’m not surprised that we’re seeing it. There are very few sources for new revenue and I would have assumed that the $40 billion created through regulation would be attractive to any Congressman.”
Original co-sponsors of HR 6501 include George Miller (D-CA) and John B. Larson (D-CT). Miller is the Chairman of the House Democratic Policy Committee. Larson is the Vice Chairman of the Democratic Caucus. What does this mean for the future of the bill? Waxman explains, “It’s a positive sign that key members of the Democratic Congressional leadership have signed on as co-sponsors of this new legislation. Their support signals that many key members of Congress are paying attention to this issue and are willing to get behind it.”
While Republicans in the House Financial Services Committee, led by Bachus, debated the morality behind gambling rather than the UIGEA itself, Democrats often focused on civil liberties and regulation of the internet. HR 6501 signifies a change of course for the Democratic leadership, which has been unsuccessful in bringing the industry back to the United States after it was buried in 2006. Waxman notes, “This gives the industry another piece of legislation to talk about. We can now draw a connection between the revenue that would come in through regulation of the industry and how it can be used for very worthwhile purposes. This issue should not just be about internet gambling and about freedom.”
It’s important to note that HR 6501, by itself, won’t bring internet gambling back to the United States. Rather, it will serve as companion legislation to a bill such as Frank’s Internet Gambling Regulation and Enforcement Act, which defines the process that online operators must go through in order to solicit U.S. customers legally. McDermott is heavily involved in tax-related bills in Congress. This is actually the third piece of legislation he’s introduced that concerns this industry.
Stay tuned to PokerNewsDaily for all of the fallout from Capitol Hill.
