Hearing on Internet gambling to be held Friday
12 April 2010
WASHINGTON, D.C. -- (PRESS RELEASE) -- On Friday, April 16, the House Committee on Financial Services will discuss the expected challenges from enforcement of the Unlawful Internet Gambling Enforcement Act (UIGEA) – a law that seeks to prohibit some forms of online gambling activity while permitting others. Previously, representatives of the financial services sector, as well as of the Department of the Treasury and Federal Reserve System, expressed concern to Congress that UIGEA is ambiguous, burdensome for banks and financial institutions and unlikely to achieve its main objective, stopping Americans from gambling online. Two pending bills introduced by House Committee on Financial Services Chairman Barney Frank (D-MA), the Reasonable Prudence in Regulation Act (H.R 2266) and Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267), seek to delay implementation of UIGEA for one year or replace it with a regulatory and enforcement framework for licensed gambling operators to accept bets and wagers from individuals in the U.S. The hearing is scheduled to begin at 10 am in Room 2128 of the Rayburn House Office Building .
"This hearing will provide further evidence that UIGEA is a poorly-crafted law that simply does not work. A more common sense approach to protect Americans is required," said Michael Waxman, spokesperson of the Safe and Secure Internet Gambling Initiative. "We expect this hearing to provide further impetus for the House Financial Services Committee and Congress to address this issue and move forward Chairman Frank's regulatory bill."
In November 2009, the Department of the Treasury and Federal Reserve System announced an extension to the compliance date of the final UIGEA regulations by six months to June 1, 2010. Recent news reports indicate that there will not be another extension of the compliance date, allegedly the result of a deal struck between the Treasury Department and Senator Jon Kyl (R-AZ) in order to lift a block on certain administration appointments.
H.R. 2267, introduced by Chairman Frank in May 2009, would put in place practical and enforceable standards to bring transparency to Internet gambling by licensing gambling operators who meet strict business operations criteria. In addition to consumer protections, the legislation reinforces the rights of each state to determine whether to allow Internet gambling activity for people accessing the Internet within the state and to apply other restrictions on the activity as determined necessary.
A revised companion to Chairman Frank's bill, the Internet Gambling Regulation and Tax Enforcement Act of 2010 (H.R. 4976), introduced by Rep. Jim McDermott (D-WA), is projected to generate $42 billion in new federal government revenues and $30 billion in new state government revenues over ten years. The primary source of the revenue would come from ensuring applicable taxes and license fees on regulated Internet gambling activities are collected.
SOURCE
12 April 2010
WASHINGTON, D.C. -- (PRESS RELEASE) -- On Friday, April 16, the House Committee on Financial Services will discuss the expected challenges from enforcement of the Unlawful Internet Gambling Enforcement Act (UIGEA) – a law that seeks to prohibit some forms of online gambling activity while permitting others. Previously, representatives of the financial services sector, as well as of the Department of the Treasury and Federal Reserve System, expressed concern to Congress that UIGEA is ambiguous, burdensome for banks and financial institutions and unlikely to achieve its main objective, stopping Americans from gambling online. Two pending bills introduced by House Committee on Financial Services Chairman Barney Frank (D-MA), the Reasonable Prudence in Regulation Act (H.R 2266) and Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267), seek to delay implementation of UIGEA for one year or replace it with a regulatory and enforcement framework for licensed gambling operators to accept bets and wagers from individuals in the U.S. The hearing is scheduled to begin at 10 am in Room 2128 of the Rayburn House Office Building .
"This hearing will provide further evidence that UIGEA is a poorly-crafted law that simply does not work. A more common sense approach to protect Americans is required," said Michael Waxman, spokesperson of the Safe and Secure Internet Gambling Initiative. "We expect this hearing to provide further impetus for the House Financial Services Committee and Congress to address this issue and move forward Chairman Frank's regulatory bill."
In November 2009, the Department of the Treasury and Federal Reserve System announced an extension to the compliance date of the final UIGEA regulations by six months to June 1, 2010. Recent news reports indicate that there will not be another extension of the compliance date, allegedly the result of a deal struck between the Treasury Department and Senator Jon Kyl (R-AZ) in order to lift a block on certain administration appointments.
H.R. 2267, introduced by Chairman Frank in May 2009, would put in place practical and enforceable standards to bring transparency to Internet gambling by licensing gambling operators who meet strict business operations criteria. In addition to consumer protections, the legislation reinforces the rights of each state to determine whether to allow Internet gambling activity for people accessing the Internet within the state and to apply other restrictions on the activity as determined necessary.
A revised companion to Chairman Frank's bill, the Internet Gambling Regulation and Tax Enforcement Act of 2010 (H.R. 4976), introduced by Rep. Jim McDermott (D-WA), is projected to generate $42 billion in new federal government revenues and $30 billion in new state government revenues over ten years. The primary source of the revenue would come from ensuring applicable taxes and license fees on regulated Internet gambling activities are collected.
SOURCE
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