In the January 27th edition of Capitol Hill publication Roll Call, a familiar name and face spoke out about the importance of legalizing and regulating online poker in the United States. The piece, entitled, “The New Deal: Regulate and Tax iPoker,” was authored by Poker Players Alliance (PPA) Chairman Alfonse D’Amato, a former three-term Senator from the state of New York.
With two sizeable stimulus packages on the table totaling over $1 trillion, part of the money to fund such programs may come from new forms of revenue. A simple solution, according to D’Amato, who spoke on behalf of the online poker industry, is to tax and regulate the game we all enjoy. He commented, “The online poker industry and the millions of Americans who play on the internet have been crying out for regulation and taxation. The absence of government regulation, and in fact the quixotic efforts to ban internet poker, has left U.S. consumers vulnerable and left billions in potential tax revenue on the virtual poker table.” It’s not very often that an industry volunteers to become taxed and regulated by the U.S. Government. However, in the case of online poker, online poker has held its hand high.
Addressing Congressmen who may be wavering over whether a tax on online poker should be implemented, D’Amato offers the following words of encouragement: “This is not a new tax. It’s not politically risky tax increases. Regulation simply allows for the collection of taxes that are currently going overseas to the other countries that have already seized on the global poker phenomenon.” The former three-term Senator also reminded his audience that poker is indeed of a skill. In fact, it’s enjoyed by one of the most powerful figures in the world, President of the United States Barack Obama.
The call to regulate online poker in the United States also received high marks in the Citizen’s Briefing Book, which gave average Americans the chance to suggest policies that the Obama administration should take on in the New Year. Regulating online poker had consistently placed around number 10. The most popular ideas in the Citizen’s Briefing Book will then be compiled and handed to the new President; voting has already closed. D’Amato reminded readers, “While the U.S. has been asleep at the wheel, other countries have stepped up to protect their citizens, and by default ours. The vast majority of poker web sites are highly regulated in their home jurisdictions, such as the United Kingdom, Isle of Man, and Alderney.”
D’Amato sums up his entry into Roll Call by saying, “If Obama applies his poker skills to his job in the White House, he will reject politically unpopular and economically untenable tax increases and look seriously at other potential revenue streams like internet poker.” The question, then, becomes how much the internet gambling and, more specifically, online poker industries are worth. A study by PricewaterhouseCoopers found that up to $40 billion over a 10 year period could be generated by taxing the industry. However, the actual total hinges on the likelihood that states would accept the new form of revenue as well as whether online wagering on sporting events would be included. This has led many in the industry to believe that the true number is lower.
In March of 2007, D’Amato officially signed on with the PPA, boosting its visibility and credibility in the process. As a result, the PPA’s membership swooned, eventually crossing the one million mark one year later. In June of 2006, the PPA stood at just 50,000 members. The organization is based in Washington, D.C.
