In a recent article by the Associated Press, it was revealed that the Poker Players Alliance (PPA), the major lobbying force for the poker industry, plans to spend $3 million for lobbying efforts on Capitol Hill during the current Congressional session.
The online poker industry is on the cusp of seeing new internet gambling legislation introduced by Congressman Barney Frank (D-MA). It will need to sway a Congress that is engulfed with a struggling economy and ongoing war in Iraq to address the need for internet gambling or online poker legislation. The PPA’s method will be to lay out $3 million during the 111th Congress, which began in January and runs through the end of 2010. According to the Associated Press, The group gets its money from the “Interactive Gaming Council (IGC), a Vancouver, British Columbia-based trade association for online casinos, as well as from its poker player members.”
The PPA has over one million members worldwide, a number that it reached last year, and offers premium versions for a one-time fee of $20. Many of its constituents, however, are of the free variety. Benefits of upgrading to a premium membership include access to the PPA’s extensive Litigation Network, which puts poker players in need of legal counsel in touch with local pre-screened lawyers, as well as a discount program that touts potential savings of over $2,000 per year. Other benefits of the $20 membership include a PPA card protector and window decal, discounts on PPA merchandise, and the ability to donate to the organization’s Poker Political Action Committee (PAC).
The National Football League (NFL) has been among the advocates of continuing the enforcement of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed into law during the final minutes of the 2006 Congressional session. Last month, it was revealed that the NFL had hired lobbyist Jeff Miller, who will serve as its first in-house counsel and keep the pulse of Capitol Hill. In an interview with the Associated Press, when asked whether he would continue to support upholding the UIGEA and Wire Act, Miller responded, “We want to maintain the integrity of the game, and gambling threatens that.”
The UIGEA does not clarify what is legal and illegal under it. Instead, the doctrine defers to existing federal, state, and tribal laws and charges the financial services industry with its enforcement. The Associated Press article notes that half of the $16 billion internet gambling industry is “fueled by bettors in the United States.” The entire industry underwent a makeover as a result of the 2006 law, which sent the largest online poker site at the time, PartyPoker, packing from the market. In addition, payment processors such as Neteller and Citadel Commerce fled. A subsidiary of a publicly traded company, PartyPoker is now the fourth largest site or network worldwide according to PokerScout.com. It has also rebounded to become the second largest that does not accept players from the United States.
NFL spokesperson Brian McCarthy told the Associated Press, “We understand that illegal gambling currently occurs, but there is little we can do about that. However, we can exercise our right to oppose Internet betting on our games. Gambling on our games – online or offline – threatens the integrity of our games and all the values they represent.” A recent study by U.S.-based PricewaterhouseCoopers noted that up to $52 billion could be raised by taxing and regulating the internet gambling industry over a ten year period. However, that figure relied heavily on professional sports leagues opening up betting on their games, a concept the NFL appears to be ardently opposed to.
Frank told the Associated Press in a previous interview that he plans to introduce internet gambling legislation before the end of April. Congress was on a recess for the Easter holiday last week. The Chairman of the powerful House Financial Services Committee had originally intended to submit a bill in March, but it was ultimately postponed due to the ongoing economic meltdown. What form the legislation will take is also not yet known.
Stay tuned to Poker News Daily for the latest from Capitol Hill.
