The website Morning Consult published an op-ed piece by Poker Players Alliance executive director John Pappas on Monday in which he railed against the Restoration of America’s Wire Act (RAWA) and the upcoming hearing on online poker scheduled for Wednesday in front of the House Oversight & Government Reform Committee. The committee’s chairman is none other than Rep. Jason Chaffetz (R – Utah), who is the man who introduced RAWA into the House as a way to curry favor with Las Vegas Sands Corp. CEO Sheldon Adelson, who is the driving force behind RAWA and the crusade to rid the United States of online poker.
“Let’s be clear,” Pappas wrote, “this hearing is taking place because it fulfills the wishes of Mr. Adelson, not because of any law enforcement implications. However, there are implications for law enforcement should Messrs. Adelson and Chaffetz get their online gaming prohibition. Law enforcement will be forced to try to control an unregulated industry that operates in the shadows, rather than a regulated one that is transparent and accountable.”
He goes on to say how regulated online gambling is working well in Nevada, New Jersey, and Delaware and that the key is “a thorough vetting of potential operators.”
“The leading U.S. Internet gaming operators are a combination of companies that are household names in the gaming industry, and state-run lotteries, not fly-by-night, offshore companies that pose any risk to law enforcement,” he added.
Pappas goes on to criticize Chaffetz’s reasoning:
Despite all the evidence to the contrary, Mr. Chaffetz claims that a ban is necessary because there is no way that online gaming can be safely regulated. This claim is particularly mind-numbing when you consider that Mr. Chaffetz’s bill contains a carve-out that exempts fantasy sports and horse racing from the ban. Why does state-regulated online poker have “law enforcement implications” when unregulated daily fantasy sports supposedly have none? The fact is that both daily fantasy sports and online poker can be effectively regulated. In fact, across the country there is an active debate in state legislatures on the best way of achieving consumer protection for fantasy sports players. Not surprisingly, they are looking at regulated online gaming for the solutions.
The hearing, based on what we can see on the House Oversight & Government Reform Committee’s website, is likely going to be a farce, but that is to be expected with Chaffetz presiding over things. Right off the bat, the title of the hearing is “A Casino in Every Smartphone – Law Enforcement Implications,” already setting a biased, negative tone.
The “Purpose” and “Background” sections of the hearing’s webpage are also totally one sided. For instance, the bullet points for “Purpose” read as follows:
• To examine how due to the inherently interstate and borderless nature of the internet, the 2011 Department of Justice (DOJ) Office of Legal Council (OLC) memo potentially opens the door to a casino in every smartphone around the country.
• To examine how online gambling is vulnerable to being used for money laundering, terrorist financing, fraud, and other criminal activity.
In “Background,” Chaffetz cherry-picks articles and press releases suitable for his point of view, not matter how valid they are. Hell, one is his own press release.
The whole thing is going to be awful.