 Online
Gambling Prohibition
Stands 100-1 Odds of
Being Reverted by
Congress Before 2010
The good news: The
New York Giants were
bigger long shots to
win the 2008 Super
Bowl than 100-1 odds
heading into this
past NFL season.
The bad news - we
here at
Gambling911.com are
perhaps being a
little too generous
giving online
gambling prohibition
those types of odds.
You may have read in
the press how on
Tuesday June 24, The
US House Committee
on Financial
Services is to vote
to dissolve the
controversial
Unlawful Internet
Gambling Enforcement
Act of 2006.
News flash: The vote
related to the UIGEA
is scheduled to be
discussed after
other issues on
Tuesday's docket.
We suspect the home
mortgage crisis is
among the more
pressing priorities.
Likewise, the vote
on an Internet
gambling prohibition
repeal might not
happen until
Wednesday as the
meeting will take
place over a two day
period. And
while sources close
to Gambling911 said
that online gambling
could come up some
time Tuesday as
opposed to Wednesday, there is also
the possibility it
will not come up at
all.
It matters in one
sense and doesn't
matter in another.
Spearheaded by
Congressmen Barney
Frank and Ron Paul,
(H.R. 5767) would
prohibit the
Department of the
Treasury and Federal
Reserve System from
proposing,
prescribing or
implementing any
regulations related
to the current ban
on internet
gambling.
Frank's bill,
however, must be
passed in the House
and the Senate
before the end of
this year.
That may seem like
plenty of time to
the uninformed but
for anyone inside
Washington, it's
common knowledge
that the
Congressional
calendar varies
greatly from
everyone else's.
In other words, six
remaining months
barely translate
into two remaining
Congressional
months.
For those who may be
unaware, Barney's
bill cannot carry on
to the next year.
If it's not passed
by November, H.R.
5767 is no more and
Barney must start
his efforts from
scratch beginning
after January.
This is the exact
reason the online
gambling industry
was caught off guard
when Arizona Senator
Jon Kyl finally
managed to get the
UIGEA passed.
We will emphasize
the word "finally".
That's because it
took seven years for
Kyl and his friends
to finally get a
bill passed that
would make some
forms of gambling on
the Web illegal.
October 2006
followed the same
trends as in
previous years,
legislation needed
to pass in both the
Senate and House
just as Congress was
preparing to recess
for the year.
Things were
different in 2006
though. Kyl
mastered his skills
with the 6th attempt
(note - he skipped
over one of the
aforementioned seven
years). This
enabled the coy
Senator to build key
alliances and tack
his bill onto an
unrelated port
security act.
But this was before
earmarks became a
major election issue
and few if any
politicians will
want to be caught
engaging in such
activity over the
next year.
Therefore, Kyl's
strategy is not
available to Barney
Frank in the near
term (next twelve
months).
Essentially time is
not on the side of
Barney Frank and his
friends in Congress
when it comes to
getting his Internet
gambling measure
passed before the
end of 2008.
Is it really logical
that Frank will wipe
out the UIGEA in a
matter of days?
Not only is it
illogical, it's
impossible.
The voting scheduled
for either Tuesday
or Wednesday will
only serve as a
"procedural speed
bump" in order to
buy time.
"This attempt will
force the US
Treasury to go back
and describe
precisely what an
unlawful online
gambling transaction
actual is," a source
within Washington
told
Gambling911.com.
"This is not voting
to do away with the
UIGEA, it is voting
to slow things down
and garner more
support."
The vote would take
place within the
House Subcommittee
and essentially
prevent enforcement
of the UIGEA for a
brief period of time
while Frank and
friends muster up
more support.
The pro online
gambling lobbyists
have been pouring
plenty of money into
their efforts, make
no mistake about it.
But all the money in
the world won't
erase the fact that
there remain
powerful members in
both the House and
Senate who do not
want to see Barney's
bill passed, which
leads us to our next
point.
The bill must pass
in both the House
and the Senate.
Forget the House for
a moment and the
potential opposition
that may arise
there. The
Senate does not even
have a comparable
bill related to the
mortgage crisis.
Is anyone to believe
they will have a
bill related to
online gambling by
year's end?
"Let's say you find
someone in the
Senate who can fast
track this (Barney's
efforts), it must
then be brought to
committee," our
Washington insider
points out.
"In the current
environment you can
only fast track the
stuff that deals
with national
security.
There won't be any
unrelated
attachments with the
American people
watching so intently
during an election
year."
Congress takes close
to a two month
summer vacation that
the conventions
begin.
"Important bills do
not get passed
between Election Day
and January 21 (when
the new
administration comes
into office)," our
source made clear.
"George Bush will
not bomb Iran during
this lame duck
period of time.
Only minor
housekeeping takes
place during this
time. It's
tradition."
So you can forget
November and
December for trying
to get Barney
Frank's bill passed.
Again, that leaves
us with barely two
months to work with.
And one can forget
all of 2009 as well
for that matter.
"The first year of
change (in the
administration)
won't be sympathetic
to online gambling.
The new politicians
will be too busy
jockeying for
positions, settling
in and making sure
they are on their
best behavior.
By best behavior,
they will be focused
intently on matters
that have gained the
most public interest
for which legalizing
online gambling is
not one of them.
We are talking
national security,
the economy, the oil
crisis, etc..."
The only expedient
means of abolishing
the Unlawful
Internet Gaming
Enforcement Act:
Have it struck down
in the courts.
That's where The
Interactive Media
Entertainment &
Gaming Association (iMEGA)
comes into play (see
site here).
Joe Brennan, Jr.,
Founder of iMEGA,
remains skeptical
that anything can
take place in
Congress before the
year is out.
His organization is
currently
challenging the
legality of the
UIGEA in the Supreme
Court and has the
backing of most
major online
gambling
establishments based
out of Costa Rica,
considered among the
industry pioneers.
"Our attitude (iMEGA
and its members) is
that we are most
concerned with
defining what an
unlawful Internet
gambling transaction
is because this is
something that we
feel Congress should
be making a
determination,"
Brennan Jr. told
Gambling911.com.
"We are talking
about Americans
rights online
arbitrarily being
tossed around and
determined by a
small group - The
Treasury Department
(in this case).
We feel it is
important the law
needs to be struck
down in the Courts.
Congress needs to
affirm Americans
Constitutional
rights online so
that they are
consistent with
American's
Constitutional
rights off line.
"Absent that, this
is one more step
down the slippery
slope our members
have feared since
the UIGEA passed
because our rights
are being determined
or taken away by a
small handful of
people who were not
duly elected."
The vote slated for
Tuesday or Wednesday
a death knell to the
Unlawful Internet
Gaming Enforcement
Act?
"Not even close!"
Brennan, Jr. said,
emphatically.
-----
Christopher
Costigan,
Gambling911.com
Publisher
CCostigan@CostiganMedia.com
Originally published
June 23, 2008 9:50
pm EST
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