Recently, 2004 World Series of Poker (WSOP) Main Event Champion Greg Raymer appeared on Fox Business on behalf of the Poker Players Alliance (PPA) to discuss the legality of online poker as well as efforts by Barney Frank to regulate and tax the industry. Among his notable assertions was that the Unlawful Internet Gambling Enforcement Act (UIGEA) does not apply to online poker. The PPA is the main lobbying voice for the online poker industry.
Donning a shirt that featured the logos of PokerStars and the PPA, Raymer also put on his trademark ‘Fossilman” sunglasses to open his appearance. His five minute interview on Fox Business began with an assessment of online poker. Cheryl Casone, one of the hosts of Raymer’s segment, commented, “Most people assume it’s illegal to gamble on the internet.” Raymer, who was a patent attorney prior to being crowned the champion of the 2004 WSOP Main Event, responded “As far as I can see, there is no federal legislation that makes online poker illegal. If you want to play online poker, I don’t think you’re breaking any federal laws.”
A short analysis of the UIGEA then ensued. Raymer explained what the UIGEA, which was passed during the final moments of the 2006 Congressional session at the prodding of former Senate Majority Leader Bill Frist (R-TN), was designed to do: “That bill says it’s illegal to engage in a financial transaction with an illegal online casino, but it doesn’t say what is illegal. I don’t think the UIGEA applies to online poker at all.” His comments were in stark contrast to those given by the CBS News program “60 Minutes,” which claimed it was illegal to play online poker in the United States on multiple occasions. That program was narrated by Steve Kroft and involved a joint investigation with the Washington Post newspaper.
Raymer noted that billions of dollars could be generated for the United States Government from taxing internet gambling. A recent study released by PricewaterhouseCoopers estimated that up to $52 billion could be raised over a 10 year period. Raymer explained, “All of these companies are headquartered outside of the United States. Therefore, they pay taxes to other countries. What Barney Frank wants to do is set up a structure to license and regulate online poker rooms in the U.S.” Congressman Barney Frank (D-MA) is slated to introduce internet gambling legislation sometime this month. No timeline has been given for the bill.
When asked whether so-called “sin taxes” become attractive when the government is in need of money, Raymer responded, “It’s a matter of general safety. We have the FDA to regulate food and drugs to make sure that everything is safe for Americans. Why aren’t we doing the same thing for all online companies, not just online poker? You want to make sure these companies are being run properly according to correct business laws and that the proper protections are in place for the consumer.” Internet gambling legislation has run into pushback from Congressmen concerned about underage gambling and problem gambling. The PPA has argued that proper regulations will prevent minors from playing online and will allow problem gamblers to seek treatment.
Raymer summed up his arguments by saying that regulating the online poker industry is “good for the online industry. I think it’s good for the consumer. It’s even better for the economy.” The Team PokerStars Pro member is fresh off an appearance at the Conservative Political Action Conference (CPAC) in Washington, D.C. There, the organization took its message to several of its staunch opponents. It came armed with Raymer, who drew a crowd to the PPA’s booth and signed autographs. Among those who the PPA spoke to were former Christian Coalition Director Ralph Reed and Americans for Tax Reform President Grover Norquist.
The PPA also brought its message to the 2008 Democratic National Convention in Denver and the Republican National Convention in Minneapolis. The organization held charity poker tournaments benefiting the Paralyzed Veterans of America at both events that were won by actor Ben Affleck and Americans for Tax Reform staffer Adam Radman.
