The more the United States government looks into Internet gambling the sooner it may be before the laws are changed. Recently Goldwater Bank agreed to forfeit over $730,000 in order to settle a claim by the US Justice Department in money that was brought in as a result of illegal Internet gambling.
It has been a busy year for the Justice Department since they have been sending a serious message to the Internet gambling industry. This June the Unlawful Internet Gambling Enforcement Act (UIGEA) went into effect and, already, the government has had a few cases that have dealt with funds dealing with online gambling.
Goldwater Bank has made the claim that the money that is question came from transactions that was not legal. THEUIGEA put a lot of burden on financial institutions in the US to thwart Internet gambling transactions and the recent Goldwater Bank settlement indicates that the government will prosecute banks that do not follow the laws of the UIGEA.
In the past few months the government has shut down a few payment processors that have taken money in by residents in the US that are gambling online. The major money amounts may lead to the legalization and regulation of the Internet gambling industry.
Gaming Analyst Steve Schwartz recently states, “The government has been told how much money is being spent on online gambling, but the numbers have been projections. Now, as they bust these processors, they are seeing first hand just how many millions of dollars are heading to offshore online gambling sites. With that much money involved, it may not be long before the laws change.”
Rep. Barney Frank already has begun the process to change the laws in the US. One of Frank’s bills was passed in the House Financial Services Committee, which the overturn the UIGEA as well as come up with a blueprint for regulating the online gambling industry in America.
Goldwater Bank was accused by federal officials of accepting financial transactions that were traced back to the gambling website of PokerStars. That will not be good for the PokerStars site, as they were in hopes to get a license to operate their website in the United States when and if the laws are changed.
An amendment to Frank’s legislation states that if any company is seen to be in violation of laws currently on the books in the US would then not be eligible to get a gaming license. Both Full Tilt Poker and PokerStars websites that were seen to be a main reason for the amendment, therefore the PokerStars and Goldwater Bank connection will not help the gambling site in the time to come.
The issue dealing with the Goldwater Bank came about after Ahmad Khawaja and his processing companies, Allied Wallets Inc., and Allied Systems Inc. had agreed to forfeit the amount of $13,3 million in funds that dealt with money laundering. The US government is under the belief that the money was used in transactions that came in from Internet gambling sites and gamblers residing in the US.
September 19th, 2024 | Posted in News, Rumors | No Comments
Recently, Playtech has begun preparations to enter the United States gambling market if the laws to overturn to UIGEA go through. The Chief Executive Officer for Playtech Mor Weizer thinks that the online gambling industry will be totally dominated by gaming companies within the U.S.
The main U.S. based companies that Weizer may have been talking about are MGM Mirage, Las Vegas Sands, Harrah’s Entertainment, and Wynn Resorts. Steve Wynn, who is the owner of Wynn Resorts, has been against online gambling being legal in the U.S. for a long time.
Playtech is a company that gives online gaming software to companies that run Internet gaming sites the world over. Playtech has taken recent steps to make sure that when online gambling is legal in America, the operators will be able to get licenses to use the software that Playtech offers.
Weizer recently stated to Dow Jones Newswires, “The timing is not clear but we see a genuine and positive momentum (towards online gaming regulations). We see a lot of interest from operators in the US, and we are in discussions with various local groups.”
One of the American groups is Harrah’s Entertainment, which has already moved into the Internet gaming industries in countries around the world. Harrah’s launched Internet casinos, with the Caesars brand, even though they do not take player from within the United States. Many gambling experts are under the belief that Harrah’s was getting ready for the online gambling market to be legal and open in the U.S.
U.S. Representative Barney Frank has already passed an Internet gambling bill through the House Financial Committee, which Frank chairs. The bill will move to the House, but it is not likely that the gambling legislation will get to the floor before the November mid-term elections. If the legislation id delayed past January 1, 2024 Frank will have to begin the process to make online gambling legal and regulated all over again.
There has been a lot of support within the legislature, which has been steadily growing for the last few years, to overturn the controversial Unlawful Internet Gambling Enforcement Act of 2006. The UIGEA has crated a ton of controversy, as since the law was implemented this June it has not done much at all to thwart the online gambling that is rampant in the United States even though it is technically illegal. Many think it is only a matter of time before online gambling is legal in the U.S. since the country has the biggest Internet gambling market in the world.
August 31st, 2024 | Posted in Gambling Thoughts, News, Rumors | No Comments
The Internet gambling issue will be at the forefront in the Nation’s Capital and leaders of the Democratic party that want online gambling to be legalized and regulated now have a little more ammunition in their arsenal. Carte Goodwin will take over the Senate seat in West Virginia for the departing Robert Byrd.
The Internet gambling debate will start in the House Finance Committee, which is chaired by Rep. Barney Frank who has been on the forefront of the online gambling issue. Frank has proposed legislation that will overturn the Unlawful Internet Gambling Enforcement Act (UIGEA) and has set up a blueprint for online gambling regulations. If the legislation makes it out of the House Finance Committee the House will then debate the issue.
If the legislation passes the House the online gambling issue would then go to the Senate. It is the Senate where Goodwin may play a key role in the future of Internet gambling in the United States. The Senate is currently controlled by the Democrats, but they need, pretty much, every member of their party for Frank’s legislation to not be stalled in the Senate. Since Goodwin, who is a Democrat, is taking over a seat of a Republican it gives them another vote for their party in the Senate.
Gaming Analyst Steve Schwartz recently stated, “If Frank can get his legislation to a vote before the November elections, there is a stronger chance it will be approved. Having another Democrat on board can only be a good thing for Frank and other Internet gambling regulation supporters.”
Frank has also begun to receive some non-partisan support for his legislation. There have been several Republican lawmakers that have signed onto his bill to legalize and regulate online gambling. Frank’s bill is H.R. 2267 Internet Gambling Regulation, Consumer Protection, and Enforcement Act.
West Virginia Governor Joe Manchin wants a vote on the issues to come this November to find a permanent replacement for Byrd’s seat. There are 2 years remaining on Byrd’s term and Goodwin is the early favorite to win the seat election after he was recently appointed the seat.
July 18th, 2024 | Posted in Gambling Thoughts, News, Rumors | No Comments
US Representative Shelly Berkley was not in favor of the Unlawful Internet Gambling Enforcement Act (UIGEA) even before it became a law. She opposed the UIGEA and is currently a leading legislator in overturning the controversial law.
Berkley has stated that the UIGEA should be called the “Unworkable” Internet Gambling Enforcement Act since it places a major burden on US financial institutions. This is even more important for Berkley since she is a Representative from the state of Nevada, which is the biggest gambling state in America. Other lawmakers in the state have been hesitant to stand behind the legalization of gambling over the Internet thinking it will take away revenue from the state.
However, Nevada gaming officials are beginning to warm up to the idea of online gambling. The owner of Wynn Resorts Steve Wynn is a huge gaming mogul and he has not been quiet in his opposition to online gambling being legal. He has suggested that if the online gambling industry was regulated it would be detrimental to the land based gambling industry.
Conversely, Harrah’s Entertainment has already launched Caesar’s Palace on the Web where people can make wagers online outside of the United States. Harrah’s sees that online gambling will eventually be legal in the US and they are getting ready for it.
Representative Berkley has the same school of though that Representative Barney Frank does, as both are against the UIGEA. They both believe that citizens of the United States should be allowed to gamble online if they wish.
Berkley recently stated, “I firmly believe adults have the right to choose how they spend their leisure time and money, and that includes the ability to participate in Internet gaming from the privacy of their own homes and computers.”
Berkley has also explained that technology has changed and that websites can put safeguards in place that will keep underage people from laying wagers. Both underage gambling and problem gambling have been at the forefront of issues why Internet gambling should be illegal.
Frank has already introduced legislation that would overturn the UIGEA and make online gambling legalized and regulated in America. That legislation was to be talked about early in 2010, but the economic woes in the nation was a more important issue for the House Financial Services Committee, which Frank chairs.
The issue of Internet gambling will likely be spoken about in the fall or it may be the case that Frank will wait until the November elections are over. This would mean that talks would not happen until the early part of next year. However, Berkley is one lawmaker that wants to deal with the issue now stating, “Just as our nation learned from prohibition, when the law actually helps the bad guys instead of protecting Americans against criminals, and only makes matters worse all around, it’s time to start over.”
July 13th, 2024 | Posted in Casinos, Gambling Thoughts, News, Rumors | No Comments
Representative Barney Frank has been on the forefront of legalizing online gambling in the US. He is looking out for the millions of Americans that want to gamble over the Internet, as Frank not only wants to legalize online gambling but regulate the industry as well. However, there is a group that is not in favor of Frank’s proposed legislation.
For the most part US Attorney Generals are not in favor of any kind of online gambling regulation on a federal level. The reason for this is that if the federal government licenses Internet gaming companies to offer American residents the chance to gamble online stats may be powerless to stop it.
Indiana Attorney General Greg Zoeller recently stated, “While I recognize that Congress considers various scenarios for plugging the deficit in the federal budget. “Our concern is that licensing and taxing Internet gambling in this way would circumvent and preempt the autonomy of state government.”
Zoeller’s comments are not only his, as there have been several Attorney Generals that have made similar statements in Washington to try to make sure that they do not regulate the Internet gambling industry. However, it looks as if Washington legislators are heading to regulate the industry, as there have been studies that have shown that by doing so would reap the US government billions of dollars in tax revenue.
The states know that if the federal government is ahead of them in regulating Internet gambling they will lose out on licensing fee rights, as well as other revenue that is derived from online gambling. This is the reason that the states of Florida, California, and New Jersey are looking into their own regulations of the online gambling industry.
Another revenue generating idea that states are looking into is sports gambling. The state of Delaware has already authorized the legalization of sports gambling and New Jersey may soon follow. However, there is a law on the federal level that will prohibit the expansion of gambling on sports within the United States.
Frank will likely start online gambling talks in the House Finance Committee in the next few months. There has been speculation that Frank may have to wait until after the elections in November before he can really begin the fight to legalize Internet gambling in the US.
June 17th, 2024 | Posted in Gambling Thoughts, News, Rumors | No Comments
In 2006 the Unlawful Internet Gambling Enforcement Act (UIGEA) was not a bill by itself, but part of a bigger bill dealing with port security. In 2006 lawmakers in America saw past the perils of the law and in the House the UIGEA was passed by a vote of 317-93. Of the majority vote more than a third came from Democrats.
Legislators in the US that have become more knowledgeable about the online gambling industry will not look to overturn the UIGEA. The House Ways and Means Committee will have the first chance to change the law, as they will he a proposal from Representative Jim McDermott.
In McDermott’s proposal online gambling would be taxed in America and is a part of a bigger legislation from Representative Barney Frank. The bigger bill would not only legalize online gambling, but it would also create the blueprint for regulating the online gambling industry in the U.S.
When the UIGEA was passed in 2006 there was less info available to the lawmakers about the online gambling issue. Since then there have been studies that have shown that the United States would reap billions of dollars in taxes from the gambling revenue.
Since the U.S. economy is struggling right now the billions of dollars would be of great help. McDermott has stated that he has come up with tons of ideas on how to increase revenue and that taxing the Internet gambling industry was the best one.
A major complaint against Internet gambling is the problems that may arise from more options for gambling. However, supporters of the legislation that Frank has proposed have seen how the Internet gambling industry has taken measures to protect underage gambling and curb problem gambling. These days there are many safeguards that are in place at Internet gambling websites.
Millions of residents of the United States already gamble over the Internet. Lawmakers in American, unlike a few years back, now know that cannot keep gamblers from finding ways to gamble over the Net. Frank thinks this is yet another reason why the online gambling industry should be a regulated one, as U.S. residents will feel ok with putting their money in gambling accounts that are government regulated.
The landscape has changed politically in the past few years in the nation’s capital and that may help push through the regulation of the online gambling industry. Currently, the House and the Senate are controlled by the Democrats and there are also Republicans that are aware their votes will have ramifications for the elections this fall. Because of these reasons the online gambling industry has a good shot at becoming legalized and regulated in the not too distant future.
May 19th, 2024 | Posted in Gambling Thoughts, News, Rumors | No Comments
Even though it looks unlikely that there will be no legislation on the federal level to regulate Internet poker in the United States there is a politician that thinks the next 8 months will have the first state to legalize online gambling.
New Jersey Senator Raymond Lesniak recently stated in a phone interview, “I believe we will have established Internet gaming with poker-type games by the end of the year. It means a lot to New Jersey because we have a wealthy state and a densely populated state. It will be a big boost to the economy if we are able to get it going.”
Legislation was introduced by Lesniak in the New Jersey state senate in January of last year, which would allow casinos in Atlantic City to run online gambling websites that would have poker games and casino games for New Jersey state residents. A bill similar to this one was already introduced in the state assembly of New Jersey. There has also been a hearing on that bill in the New Jersey senate and Lesniak is planning another hearing later this spring and then there will be a vote this fall.
There is talk on the federal level that Senate Majority Leader and Nevada state senator Harry Reid could introduce another similar bill regarding online gambling regulation. A Reid backed bill may gain momentum even though it is not clear how much a bill from Reid would be endorsed by the poker community after he will not be looking out for his constituent casinos in his home state of Nevada.
Since it is already May there is no movement on the online gambling bill by Barney Frank on the federal level so it looks unlikely a bill would pass this year. The best thing that can happen is a talk about the issue on Capital Hill.
If New Jersey if online poker would become legal it may have a domino effect that may pressure the federal government to get the ball rolling on the issue.
Earlier this year Interactive Media Entertainment and Gaming Association chairman Joe Brennan Jr. said, “If it looks like the states are going to start moving on this one by one, the federal officials might realize they have to start some sort of federal license tax or the states are going to take over and they will be cut out.”
Also, Lesniak has introduced New Jersey state legislation that would offer betting on sports and he filed a federal lawsuit that challenged the law that makes it illegal to bet on sports in every state except Montana, Oregon, Delaware, and Nevada. Lesniak has stated that he would like to get a decision on this by the end of this year so New Jersey could look further into that bill.
May 9th, 2024 | Posted in Gambling Thoughts, News, Poker, Rumors | No Comments
Representative Barney Frank has been at the forefront of trying to repeal the online gambling ban and now he may have another weapon in his arsenal to do so. There has been a recent study done by H2 Gambling Capital that showed that around 32,000 jobs could be created if the United States were to legalize and regulate the Internet gambling industry.
Frank has already introduced legislation that would regulate Internet gambling in the United States. There is also another bill that would also do away with the Unlawful Internet Gambling Enforcement Act (UIGEA), which was made a law in the Bush Administration back in 2006.
The H2 Gambling Capital is a group that is seen as one of the best in their field in terms of both collecting and looking into data for the gambling industry around the world. Since the unemployment rate continues to increase in the United States the group has stated that within a period of 5 years there may be up to 32,000 jobs that would be created by the Inter gambling industry.
As it stands now, companies that are set up offshore deal with most of the gambling market in the United States. Companies cannot get legal gaming licenses in the United States, since the UIGEA is in effect, so US gamblers must gamble at these unregulated websites in order to play. Frank has stated that the US Government has to protect American citizens against these websites, which are not regulated and are really not legal for US players.
It has been planned that the House Financial Committee would be talking about the legislation Frank put forth, but the hearing was delayed until a later time, as there are more important issues on the docket. Frank and the people who believe in his cause will have to wait until June of this year for the legislation to be heard and passed and if it is passed the UIGEA rules would be more clear and come into effect.
Besides the jobs that would be created by the regulation of Internet gambling in the United States, the US Government would reap billions of dollars. There has already been a study performed that has shown this. There will be various gaming and financial experts that will take part in the legislative discussions that will show the effect that regulating the Internet gambling industry will have on America.
Not only does it look like the Federal government will reap the benefits of legal Internet gambling, but many states would as well, which is why online gaming may be legalized on the state level before the federal one.
April 22nd, 2024 | Posted in Gambling Thoughts, News, Rumors | No Comments
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.
March 31st, 2024 | Posted in Gambling Thoughts, News, Rumors | No Comments
There have been rumors that Florida may be one of the first states that would regulate Internet gambling. Recently, state Representative Joseph Abruzzo filed the Internet Poker Consumer Protection and Revenue Generation Act of 2010.
The legislation shows a regulated system of Internet gambling in the state of Florida. If the legislation is approved the state would be the first to use the rules of the Unlawful Internet Gambling Enforcement Act (UIGEA) in order to aid in regulating online gambling. The UIGEA was passed to get rid of online gambling in the United States, but in the last few years online gambling has grown and not shrunk.
There is a clause in the UIGEA that lets states regulate and conduct intra-state online gambling by law. The legislation of Abruzzo takes advantage of the clause. The bill that was recently filed would let operators of Internet hubs to run Internet poker websites. To get a license operators of the hubs would have to be hand picked by Florida and there are strict guidelines in the bill that would have to be adhered to.
First, the hub operator must have a business license in the state of Florida. Second, the operator must be licensed in more than one state. Third, the operator has to be licensed to offer Internet poker in a country outside of the United States.
If these guidelines were met there would then be a $500,000 application fee that must be paid to the Pari-Mutuel Wagering Trust Fund of the Department of Business and Professional Regulations. If the application is approved the operator would have to pay an annual license fee of $1,000.
When the Internet poker website is set up there are stringent rules in the proposal of Abruzzo. The minimum gambling age would be 21 and this safeguards against both underage gambling as well as money laundering. The online hub operators also have to fully insure all of the software that is being used on the site.
Safeguards for the online players have been a main reason that US Representative Barney Frank has proposed legislation to overturn the UIGEA. There are currently millions of Americans that are gambling over the Internet at websites that are not regulated by the American government.
In the state of Florida and person attempting to get a license has to make sure that the player online is protected against fraud. One of the big problems for lawmakers that are looking to legalize online gambling is addiction to gambling and Abruzzo has that taken care of in his recent proposed Bill.
The Internet hubs have to have limits on the amount of deposits and how much money a player is allowed to deposit daily. Also, a limit has to be placed on how much money a player online can lose in a certain amount of time. There will also be a time limit placed on how long a player can gamble.
Another issue that lawmakers are dealing with is the percentage of taxes on the winnings. In the Internet Poker Consumer Protection and Revenue Generation Act of 2010, Abruzzo has set a plan for 20% of the winnings every month that will go to paying taxes.
If the recent legislation will be passed remains to be seen, but it will depend on the ability of the lawmakers to foresee the financial potential and to come to a middle ground on the differences they have on the issue of online gambling.
Abruzzo has laid out a good Bill that covers all the aspects that makes most bills get thrown out, which may make Florida the first state in the United States where online gambling would be regulated and legal.
March 4th, 2024 | Posted in Gambling Thoughts, News, Poker, Rumors | No Comments
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