Gambling Law Blurbs
Online Gambling Bill Introduced To Aid Foster Care
U.S. Representative Jim McDermott has recently upgraded proposed legislation from last year, which would tax Internet gambling in the United States. The tax revenues would go towards foster care in the United States.
In the new proposal both state and tribal governments would get 6% of Internet gambling taxes coming from residents in their states. The glaring health care need brought about this recent change of legislation.
In many states social services have been drastically cut, as there is simply a lack of money in budgets in states across the U.S. The new bill would let states gain from legal online gambling, which currently goes on but not taxed.
McDermott recently stated, “The major reason is to make it possible for states to have access to online gambling revenue.”
At the end of 2006 a Republican dominated Congress approved the Unlawful Internet Gambling Enforcement Act (UIEGA). This law puts the burden on financial institutions in the United States to half Internet gambling in the country. The institutions have to deny payment to and from operators of Internet gambling websites.
The UIGEA rules were to go into effect in December of last year, but Representative Barney Frank, as well as other politicians that opposed the law, was successful in lobbying to have the rule delayed 6 months. Frank has introduced legislation, which would overturn the UIGEA and give a blueprint for regulating the Internet gambling industry in the United States. As of late March Frank has 65 co-sponsors for the legislation, but the bill has not yet been formally discussed.
Owners of Net Gambling Websites come Forward in Kentucky Court Case
The Supreme Court gave the state of Kentucky a reprieve in ruling that the website domain name court case could not proceed, as there were no website owners present. The Interactive Media Entertainment and Gaming Association were representing the websites in court.
However, the Supreme Court ruled that there was not any evidence that the Media Entertainment and Gaming Association did not have any authority to represent the Internet gambling websites. The court ruled that for the case to go forward one of the website owners must be present and say they were an iMEGA member. This recently happened when the owners of TruePoker.com, Yatahay Limited, stated they were an iMEGA member. This gives the iMEGA the right to inquire if the Supreme Court can hear the case again.
That occurred this week when Yatahay Limited, the owners of TruePoker.com, acknowledged being a member of iMEGA. That assertion gives iMEGA the right to go back and ask that the case be sent back to the Supreme Court.
Joe Brennan, iMEGA Chairman stated, “The Commonwealth’s attorneys knew they were lucky to get this one into overtime.”
The next step may bring an end to the legal proceedings. If the Supreme Court rules in favor of the iMEGA and the Internet gambling websites then the state of Kentucky would not be allowed to seize the domain names. iMEGA stressed the importance of a quick ruling in the case. They are under the belief that if the domain names were to be seized it could have bigger and more reaching implementations for the Internet.
