You are here: Home / Why HR 6663 is a Joke, Won’t Pass, and The Poker Community Needs to Wake Up

Why HR 6663 is a Joke, Won’t Pass, and The Poker Community Needs to Wake Up

Submitted by C Costigan on Mon, 08/25/2008 - 09:35.

Online Poker

For anyone in the poker community who believes that HR 6663 - a bill introduced by Republican Congressman Pete Sessions - is good for the online gambling industry, it's worth noting one of the main reasons Internet poker exploded the way it did in recent years has a great deal to do with sports betting.

First, HR 6663 looks to interpret the Unlawful Internet Gaming Enforcement Act as applying only to sports betting. Unfortunately, the UIGEA was intended to make poker just as bad as sports betting. In fact, sports betting has always been deemed less of a threat to the casino industry.

Just look at Washington State. Sports betting was not even considered in its rationale to pass a law making Washington the first - and only state to date making it illegal to place a bet or play poker online. Massachusetts is trying and - like Washington - this all has to do with pressure from the land based and powerful Indian casino groups who do not want online casino games (including poker) getting in the way of their revenue. The only real threat to sports betting has come from the professional sports leagues and horse racing industry, none of which give an iota of interest in ridding us of online poker.

But getting back to sports betting and its impact on web poker. We should point out that it was the sports books that first aggressively began fueling the online poker craze. Without the "skins" provided to their own customers, the industry would likely still be in its infancy. You see, somewhere around 90 percent of sports bettors also love to play online poker.

To its credit, the Poker Players Alliance has refused to support Sessions plan. They understand the implications of such a law and that the US Justice Department will still be able to come after online poker operators. Neither will the banks have time to try and sort out the difference between "good" online gambling transactions (poker) and the so-called "bad" one's (sports betting). It is difficult enough for them already.

And anyone who thinks the US Justice Department does not look the same way at online poker the way they do sports betting needs to seriously get their heads out of the sand. It was just a few years ago that the DOJ fined Esquire Magazine for featuring a Bodog Poker ad. Similar actions have been taken against media for advertising Paradise Poker, which doesn't even offer sports betting. PartyGaming's founders are attempting to work out a deal with the US Government to prevent potential future prosecution for having taken millions of dollars of revenues from US customers in the past. While that company may have voluntarily pulled out of the United States market in late 2006, the DOJ still wants blood. They want prison time and massive fines. Hardly sounds to us like the Department of Justice is drawing any distinction between online poker and sports betting.

The only hope for the industry is to get beyond the discrimination. Poker, sports betting, US-facing gaming companies and European gaming companies all need to work together the same way that the porn industry has worked together when they were in the same dilemma just a few years back. It should be noted that there are plenty of parallels between the two industries - more specifically, political forces have used "easy access by minors" as the motive for eradicating both porn and online gambling.

As Gambling911.com reported extensively over the past weekend, Bodog is coming dangerously close to leaving the US market. Bottom line - nobody wants to process for them. Very soon there may be nowhere else to play. For anyone sick and tired of the current situation - supporting Pete Sessions bill is a waste of time and effort.

Get on board with real efforts to help maintain the online gambling industry. Poker players and sports bettors alike are encouraged to join the Poker Players Alliance (see website here) and iMEGA.org, which is currently challenging the UIGEA and its policy enforcement in a US Appeals Court (see website here).

----

Christopher Costigan, Gambling911.com Publisher

Comments

Wait, did you read UIGEA, Mr. Anonymous Poster?

Here's the fact about UIGEA: it does not define what an "unlawful internet gambling transaction" is. There is NO CARVE OUT FOR POKER. Why, dear haughty previous posters, do you think that the PPA has been so resolute in trying to promote legislation that would void UIGEA, or lobby to get an explicit exemption (like the one granted for horse racing and fantasy leagues). Just because previous prosecutions have focused primarily on sports betting in no way implies that internet poker is in anyway illegal. In fact, all you have to do is read Catherine Hanaway's testimony before Congress earlier this year: to paraphrase, 'all forms of internet gambling - even horse racing, despite the exemption provided by UIGEA - are considered ILLEGAL by the Justice Department. So, before you trolls out there try to come down hard on g911 and their level of knowledge on this, GET YOUR FACTS STRAIGHT you moron. And guess what: as long as you "poker-only" guys continue to try to go your own way, and punk casino and sports book, you only give more opportunity to people like Kyl, Dobson and the rest of their ilk an easy "divide and conquer" victory. PPA didn't accomplish anything this year. They spent a lot of money, and they came away empty handed. Here's the biggest indicator about UIGEA and poker, for those of you who still don't get it. Party Poker was the biggest site, bar none. As soon as UIGEA passed, they pulled out of the US - more than 85% of their market - and left because of their fear of that law. Duh. Do you think a company with a $10 billion market cap would flush over 85% of their value if the law in question didn't focus on all internet gambling (except horseys and fantasy dorks)? Please, stay in your angry little basement and keep your uninformed assertions to yourself. You read like an idiot.

Did you actually READ UIGEA?

UIGEA does NOT define unlawful transactions. It clearly says those are defined UNDER STATE AND FEDERAL LAWS. Therefore your theory that it was meant for POKER as well as Sportsbooks is rediculous. The intent of the bill was to make it illegal for financial instituion to process "unlawful transactions" and that is it. The only federal law that applies is the WIRE ACT and that has been proven in COURT to apply only to SPORTS BETTING. There are a few States that have ANTI POKER laws but the States that do not are fine to play in. How about you actually consult a laywer and learn how this stuff works?

???

I can only assume you are relatively new to this industry to write what you have done in this article. Whilst I agree that the DoJ doesnt differentiate between sports and poker, when it comes to fines for companies and individuals the lack of any precedence for poker being illegal versus sports betting (Wire Act) will come into play so its not factually 100% correct. Your comments surrounding the rise of poker being dependent on sports is completely incorrect however. Poker was actually about 5 years old online before it took off and sports betting was around during this time so its not the driver. The driver was ESPN's televised coverage and the introduction of cameras under the pocket cards, combined with PartyPoker's million dollar cruise. It was these two events that led to its explosion - the rest is history. Discrimination between products will also continue. Barney Frank's bill allows both states and sports to opt-out. I suspect we will orginally see sports such as NFL opt out. Why should the industry "get beyond discrimination" therefore? Legalise poker and casinos first and sports will surely follow. Lump them together and sports will likely hold poker and casinos back and it delays the whole process.

Please do some more research!

Sports Betting is already ILLEGAL under the WIRE ACT. How come you do not understand that? Every single major arrest has been based on violating the WIRE ACT due to Sports Betting and they had nothing to do with UIGEA. Please educate yourself before writing articles like this.

re: research

G911.com spouts almost entirely lies in virtually every article .. nothing surprising here.

Pay No RakeSportsinteractionPaddy Power Casino

Gambling News

User login