Social Security Payroll Tax Extension Bill Could Carry Online Poker Measure

Harry Reid this past week confirmed he is in talks with Senator Jon Kyl of Arizona to draft legislation that would essentially override the Unlawful Internet Gaming Enforcement Act (UIGEA) and make online poker legal at the federal level.  Kyl was the architect of UIGEA, which requires banks to halt transactions related to Internet gambling, with some exceptions.  Financial institutions have, however, chosen to ignore those exceptions, opting instead to block nearly all gambling-related transactions. 

The timing is critical.  Last month the US Justice Department revealed it will no longer apply The Wire Act to poker, thus creating an environment where individual states began in earnest to consider legislation at the local level as well as entertaining multi-state coalitions. 

Connecticut, Maine, New Jersey, California, Iowa, Nevada, Ohio each have hinted or – in the case of Nevada – pushed through legislation for intrastate Web poker.  Every few days, another state seemingly steps into the ring.

“We cannot have a series of laws around the country related to gaming,” Reid said. “I know a lot about gaming… I’m a former chairman of the Nevada (Gaming) Commission and I think it’s very important that we have a national law.”

The Senate Majority Leader was quoted as saying:  “I’m not going to get into how we’re going to get it done. We’re going to work together to get it.”

The idea of pushing a standalone piece of legislation within a relatively short time frame seems highly unlikely.  Instead, speculation has arisen that Reid might add such a measure to a possible Social Security Payroll Tax Extension bill.  The current payroll tax cut extensions expires on Feb. 29.

Supporters of legalized Internet poker in the US claim the multi-billion dollar industry will help boost the economy, whether at the local or national level, through job creation and taxation. 

Congressional Republicans are already eyeing the Social Security Payroll Tax Extension for its next attempt at pushing through the controversial Keystone XL pipeline, claiming the project will create upwards of 6000 construction jobs. 

- Chris Costigan, Gambling911.com Publisher