It was only a matter of time before the Poker Players Alliance, the main lobbying group for the online poker industry in the United States, weighed in on the cheating scandal that has rocked Ultimate Bet, one of the world’s largest online poker rooms. After all, the cheating occurred in an online environment that was not regulated by any U.S. entity, which is exactly what the PPA has been seeking ever since the Unlawful Internet Gambling Enforcement Act was enacted into law in 2006. With regulation and oversight, in theory, future situations like the ones that occurred at Ultimate Bet and Absolute Poker could be avoided altogether.
A press release distributed by the PPA offers the following statement from Chairman Alfonse D’Amato: “Because of the current legal uncertainties and the lack of federal regulation and oversight, it is especially troubling when cheating occurs in online poker. This has created an untenable atmosphere and has denied the proper means to investigate allegations, administer due process and then apply appropriate penalties for the wrongdoers.” D’Amato’s arrival at the PPA sparked a sizeable increase in the number of members, which has recently surpassed one million. Its size has given the PPA additional leverage in formulating legislation, as evidenced by the recent introduction of Congressman Jim McDermott’s HR 6501. D’Amato is a former three-term Senator from New York and has publicly supported Republican Presidential candidate John McCain.
Barney Frank’s HR 2046, the Internet Gambling Regulation and Enforcement Act, would provide a regulatory framework for legalized internet gambling in the United States. The bill was discussed in Committee last summer, but still awaits its time on the floor of the House of Representatives. D’Amato comments on why the bill, or others that would bring regulation of online gambling to the U.S., is so important: “The recent cheating scandals underscore the need for U.S. licensing and regulation of online poker to help protect consumers. While even the most highly regulated industries are susceptible to fraud and abuse, regulation does provide assurances that when consumers are harmed they have recourse.”
In the Ultimate Bet scandal, the company’s former owners, allegedly including Russ Hamilton, exploited a vintage auditing tool that enabled its users to see the hole cards of every player at the table. Armed with this critical information, the conspirators took money from some of the highest-stakes games on UB. D’Amato continued, “Remaining consistent with our organization’s mission, we will continue our efforts on Capitol Hill to ensure lawmakers are well educated about the benefits of regulation to protect consumers and enable the rights of poker playing adults.” In essence, the scandal underlines the need for proper, centralized regulation in online poker. In the UB cheating scandal, players who were affected were refunded. UB is regulated by the Kahnawake Gaming Commission, a Canadian organization whose clients also include Full Tilt Poker, PokerStars, and Hollywood Poker.
The opposition to legalized internet gambling in the United States is led by Congressman Spencer Bachus, a Republican Representative from Alabama. He recently concocted a statistic claiming that one-third of college students who gambled online attempted suicide. The study in question, one from McGill University in Canada, never actually took place. PPA Executive Director John Pappas comments on the false statements given by Bachus: “Representative Bachus’ clear misuse of the facts to help defeat a common sense clarification of UIGEA is troublesome. It demonstrates the lengths our opponents will go to legislate morality even when creating sound public policy is at stake.” Bachus will likely lead the charge against bills such as HR 2046.
The PPA continues its lobbying efforts on Capitol Hill every single day. The DC-based organization has grown from 50,000 members in 2006 to over one million today.
