Recently, Chicago Tribune sports columnist Steve Rosenbloom participated in a panel discussion in his newspaper. The question asked to four Tribune writers was, “What would you like an Obama presidency to mean for Chicago?” Rosenbloom’s response was one that his editors were not expecting: a repeal of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was unceremoniously passed in late 2006.
In the Chicago Tribune article, Rosenbloom stated, “I want our Poker Player-elect to obliterate the unworkable Unlawful Internet Gambling Enforcement Act, which was deviously attached to the SAFE Port Act in 2006 and hastily rushed to finalization last week by the lame-duck Bush administration.” Instead of banning an industry that was featured in last weekend’s episode of CBS News program “60 Minutes,” Rosenbloom instead called for regulation: “Regulate it, tax it, reap millions. Governments back lotteries, which prey on the stupid. Why should people playing a game of skill such as poker get the criminal treatment?”
It was one of the few mentions of online poker in mainstream media outlets, especially one with as great of a reach as the Tribune. Rosenbloom told Poker News Daily, “What [Bill Frist] did was despicable. There was no way that the SAFE Port Act would not have passed. I think it’s very short-sided. You are denying the opportunity for the country to help solve some of its financial problems if your regulate it, license it, and tax it.”
Poker-related websites were up in arms when the UIGEA was ushered through by Frist during the final moments of the 2006 Congressional session. Similar outrage was seen when the law’s regulations became a part of the Bush Administration’s “midnight rule-making” and are now set to go into effect on January 19th, 2009, one day before Obama is sworn in as President. Rosenbloom explained, “I knew if the call to regulate internet gambling came from some place other than a poker website, it might carry a little bit more weight.”
When Obama takes office in six weeks, he will be joined by a Senate and House of Representatives controlled by Democrats. In fact, the party actually gained seats on its primary opponents, the Republicans, during the recent 2008 general elections. Many have speculated as to whether internet gambling will be on the agenda in the New Year. Rosenbloom weighs in: “I would be surprised if anything happened in 2009. However, I do think that it has a chance to be discussed because Democrats traditionally tax and spend. The opportunity for a Democratic President to be able to find a way to bring in money will appeal to him.”
A study by PricewaterhouseCoopers that was performed one year ago estimated that up to $42.8 billion could be raised by taxing the internet gambling industry. Washington State Congressman Jim McDermott went so far as to introduce HR 6501, the Investing in Our Human Resources Act, which would have funneled the money to those Americans currently or formerly in foster care as well as those working in declining industries. It was introduced in July, but failed to muster any steam. Still, it was one of the first attempts to demonstrate how money derived from internet gambling could be used. Nevada Congressmen Shelley Berkley and Jon Porter lambasted the move by McDermott, with the former saying it was putting the proverbial cart before the horse.
The Poker Players Alliance, which is the main lobbying group for the online poker industry, has laid claim to the fact that poker is a game of skill and thus should be treated differently than online blackjack, slots, and sports betting. Florida Congressman Robert Wexler introduced HR 2610, the Skill Game Protection Act, which would have exempted online poker, bridge, mah jong, and other player versus player games from all existing legislation, including the UIGEA and Wire Act of 1961. Rosenbloom commented on poker as a skill game by telling Poker News Daily, “Every game or sport has an element of luck. A ball can bounce off the ground a certain way in baseball. If you can take something like a lottery and say that it’s legal, then you can certainly have a game with a lot more skill like poker that would also qualify.”
Existing pieces of legislation that have not yet become law must be reintroduced during the next Congress. Wexler, McDermott, and internet gambling champion Barney Frank will all return to Capitol Hill in 2009.