U.S. Online Gambling Law Overhaul Postponed to 2010

Revision of the U.S. federal Internet gambling law has been postponed to 2010 because of the global economic recession and health care crisis, according to congressional sources.

U.S. Rep. Barney Frank (D-MA) proposed legislation to overturn the Unlawful Internet Gambling Enforcement Act of 2006. Unlike previous resistance, his congressional colleagues have been too busy with the fallout from the global recession to attack the online gambling issue. However, support is growing for changing American laws.

Recent activity by the U.S. Department of Justice has put a damper on casinos. Federal law enforcement has seized bank accounts and jailed American online players for refusing to testify about what they know of online casinos.

The online gambling industry sees the United States as the world’s biggest potential markets, so online operators are anxiously awaiting congressional action.

Internet Research on problem gambling a factor in law revision
Research on the effects of online gaming may become a focus as federal lawmakers consider how to revise Unlawful Internet Gambling Enforcement Act (UIGEA), reported PokerNewsDaily.com recently.

The Comprehensive Problem Gambling Act (HR 2906) was introduced in June, 2009 by U.S. Reps. Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA). The bill boasts 26 co-sponsors on both sides of the aisle and allocates $71 million over five years for problem gambling awareness, research, and treatment. Its language was incorporated into Senator Robert Menendez’s (D-NJ) SB 1597, the Internet Poker and Game of Skill Regulation, Consumer Protection, and Enforcement Act.

Poker News Daily interviewed Keith Whyte, head of the National Council on Problem Gambling. Whyte said that a lot of his organization’s research doesn’t pertain to online gaming and that there may be significant differences between Internet and live players.

Whyte noted that many online gamblers tend to be young men who gamble 14 hours a day online to the detriment of work and family life. He cited as risk factors for gambling problems the Internet’s “high speed of play, social isolation, use of credit cards, higher limits, and easy access.”

Whyte also was asked whether industry regulation such as that proposed by U.S. Rep. Barney Frank (D-MA) would deter gambling problems. He responded that his organization has had no confirmation that regulated gambling results in more responsible gaming, because state governments aren’t collecting or releasing statistics on problem gambling.