US Poker regulation in the balance

With the UIGEA finally coming into effect in June this year and talk of grand jury investigations into online poker sites it hardly seems like a time to be upbeat about the possibility of online poker legislation in the US. But as the Barney Frank bill continues to make slow progress through congress online poker’s proponents, and there are many, continue to claim regulation is just around the corner. From a wider perspective, however, the picture seems less clear.

The Frank bills HR 2266 (Reasonable Prudence in Regulation Act) and HR 2267 (Internet Gambling Regulation, Consumer Protection, and Enforcement Act), were scheduled for discussion in April but the date was delayed for later in the year. HR 2266 seeks to delay the implementation of the UIGEA, while HR 2267 seeks to introduce a licensing system for online gambling in the US. No date has been rescheduled to discuss either bill. It was not a good sign for those who have pinned hopes on a regulated US online market

The Fightback Continues

Despite the setback there are reasons to be cheerful, with the hugely influential American Gaming Association coming out in favour of licensed regulated online gambling in the US. And Frank remains confident his bill will attract support when it receives another hearing later in the year. But not only are the wheels moving slowly, but online gaming’s detractors are sniping from the sidelines.

According to press reports in the US a Republican memo tying jailed lobbyist Jack Abramoff to online gambling made its way around Capitol Hill. Abramoff was indirectly linked to lobbying for online gambling firms in the past, although there is no implication of any links to firms currently lobbying.

Other influential groups, such as Focus on the Family have also come out against any potential legislation. But while we wait for the outcome of HR 2267, the UIGEA will come into effect on 1 June and there will be a nervous few months as the industry waits to see what impact this has on a fascinatingly poised sector.