Michael Waxman: Vey Optimistic About Online Poker Legislation Passing

Gambling911.com Senior International Correspondent Jenny Woo sat down with Safe and Secure Initiative (www.safeandsecureig.org) founder Michael Waxman, who has been at the forefront of pushing for legalized online poker and gambling in general. 

For now, the focus is on legalized Internet poker as part of a measure that passed through a House Subcommittee last month.

Michael is the son of California Congressman Henry A. Waxman and certainly has plenty of connections throughout Washington.

His organization bills itself as promoting the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions.

Additionally, the Initiative is a resource for information about legislation to regulate Internet gambling and provides individuals, organizations and companies an opportunity to engage their elected officials on this issue.

JENNY: What is your feeling regarding the chances of online poker legislation passing?  Is this the most optimistic you have been to date?

WAXMAN: We have certainly hit a high water mark in our efforts to get Internet gambling regulation/legislation through Congress. The mark up of the bill in the House Financial Services Committee and overwhelming support for the legislation clearly shows that there is an appetite, a willingness and broad support for moving Chairman Frank’s regulatory bill forward. What was especially encouraging is having representatives from both sides of the isle come together on this issue, which in this partisan climate is not often seen. I’m very optimistic that the momentum will continue in the coming months and through the end of the year. It’s hard to predict whether the legislation will get past in this next year but I firmly believe it’s just a matter of time before it does get through.

JENNY: Is it possible for it to pass in 2010?

WAXMAN: It is certainly possible. Working in our favor are a couple of factors. One, we have this vote that shows there is broad support for the legislation and bipartisan support. This sends a very clear signal to Congressional leaders in both the House and Senate that Internet gambling is an issue that deserves to be addressed. Also, to our advantage is the new revenue that would be generated in a regulated environment. With Congress looking to cover the cost of unfunded or under funded programs, there is significant amount of revenue sitting on the table for their use and I’m hopeful that they’ll incorporate the Frank and McDermott bills into a larger legislative package not only as a way to protect consumers but to put this good money to use.

JENNY: What are your biggest concerns as we move forward with the bill to the House and Senate floors?  To date, Spencer Bacchus and Jon Kyl have provided bitterness towards the industry, Do you see them as a serious threat moving forward?  What about the group of state attorneys who sent letters protesting the legislation?

WAXMAN: I’m not concerned at all by Bacchus, Kyl, or the state attorney generals who don’t seem to have their facts straight. Just looking at the fact that this legislation got passed with seven Republicans out of the House Financial Services Committee goes to show you that Spencer Bacchus is speaking for himself and not for his party. And in the Senate, I’m optimistic that there will be support for this common sense policy approach since the laws on the books now have shown to be an utter disaster and complete failure.

JENNY: I recently had the opportunity to interview Congressman Barney Frank proved that he could bring Democrats and Republicans together after a 41-22 vote with H.R 2267. In the future, do you think there will be more representatives on board after more information comes to play?

WAXMAN: I believe that as this legislation moves forward members of Congress will be forced to pay attention to the issue as it’s put in front of them. We’ve spent a lot of time educating members of the House Financial Services Committee. There’s been a hearing in the Ways and Means Committee and the potential for markup on McDermott’s bill in that committee in the coming months. As members are forced to face this issue because of appending vote or even because their constituents are asking for their position statement I’m optimistic that we’ll continue to pick up support from members across the country.

JENNY: Is it your position that all forms of online gambling should be legalized, not just poker?

WAXMAN: Completely. If you look at what is legal now in land based casinos that should be what we should be striving for. From a prospective, it’s about giving Americans the freedom to gamble online whether they want to play poker, place a wager on sporting event, or take their chances at playing slots. For me there shouldn’t be a distinction between the online gambling activities. If they’re available and legal now in some place around the country, I would hope that the Federal Government would allow the activity to occur and the states would follow in their lead.

JENNY: We spoke to an industry expert who predicts that big players will enter the arena should online poker legislation pass (PayPal as a processor for example).  What do you see as the future of online gambling?  Will Full Tilt and PokerStars still have a role?

WAXMAN: I believe that the biggest beneficiaries of online gambling regulation are going to be the land based casinos already operating in the U.S. They have the brand loyalty, they have opportunity to develop customer loyalty programs, and they are recognizable entities where Americans have traditional gone to gamble in person and I would expect that they would want to continue that relationship and gambling online with the same entities. It’s hard for me to say what will happen with other operators but I would hope that this market opens up to all operators that qualify based on the regulatory requirements.

JENNY: There is much activity on the state front.  What do you see happening in states such as New Jersey, Florida and California?  How will that effort coordinate with federal legislation?

WAXMAN: It’s great to have online gambling regulation pushed at all levels and around the country. Our goal is to have the market place opened up. Certainly we believe the best opportunity is to create a federal framework for online gambling regulation. However, we fully support efforts at the state level that would allow Americans to gamble online. If it happens at the state level first, we hope that only goes to show that regulation can be successful and would hope that it open the door for other states to allow the activity as well.

JENNY: Going back to my interview with Congressman Barney Frank who isn’t necessarily for online gaming but instead for the freedom rights for the U.S. citizens. With that said, H.R. 2267 in which Frank introduced was recently passed. In my interview with him, he reiterated that U.S. citizens that he’s fighting for must contact their local representatives in order to bring online gaming into the “now”. In your opinion, is there anything else that the American citizens can do to move online gaming forward in 2010?

WAXMAN: Well I believe that Chairman Frank is giving the right advice. Our elected representatives are there because we’ve given them the opportunity to represent us and to best represent our views.  I would hope that anyone interested in supporting online gambling regulation will reach out to their members and encourage them to get on board. If they’re not on board, it may be enough of a reason to search for other candidates and support other candidates who understand this issue and support our common sense approach.

JENNY: New York Representative King introduced Amendment 3, which prohibits Internet bets or wagers on sporting events with the exception of federal horse racing. Firstly, do you know how involved he is with Frank on H.R 2267? And what’s stopping the sports community to not speak out and ask to be involved?

WAXMAN: Congressman King has been a supporter of online gambling regulations in Chairman Frank’s approach from the very beginning. He has been a great champion of our cause and movement. The amendment to restrict online gambling activities as they relate to sports wagering has been a necessary evil because the sports leagues have historically been one of the most vocal opponents of any expansion of online gambling activity. When Chairman Frank’s bill gets passed, I would hope that in the future this amendment would be replaced with regulations that allow sports wagering online to occur. What’s frustrating is that without allowing online sports gambling in a regulated environment we’re just going to leave American’s vulnerable as they place wagers with bookies or online operators that are not licensed and properly monitored.

JENNY: Your dad is Henry Waxman, a Representative out of the state of California - Is he also active in local or federal initiatives concerning legalization of online poker?

WAXMAN: Is he active in the issue? He’s certainly not active on the issue.  I believe that he is monitoring the legislation and looking to figure out what makes the most sense.

JENNY: Lastly, what’s next for you? What’s going to be on your agenda?

WAXMAN: Our focus is continuing to support the legislative efforts and to draw attention to this issue. We’d hope that Jim McDermott’s bill gets brought up in the Ways and Means Committee for a vote in which case we’ll be out there looking to educate members of that committee about the issue and encourage for their support for the bill. At the same we’re going to continue to reach out across the country to members that need to be reminded about this important issue and why they should support it.

Jenny Woo, Gambling911.com Senior International Correspondent