Frank bill passes mark-up stage

Leiglsation seeking to regulate online gaming in the US passed a crucial committee vote on Wednesday as it continues to gain momentum in the House of Representatives.

The Barney Frank sponsored Internet Gambling Regulation, Consumer Protection and Enforcement Act (HR 2267) was passed with support from both parties by a vote of 42-21.

'This is a great day, not only for poker players, but for proponents of internet freedom and individual liberty,' Alfonse D'Amato, chairman of lobbying group the Poker Players Alliance, said.

It will now pass to a report stage before potentially facing a full vote in the House later this year, although the bill will raise some concerns for existing poker operators.

Several amendments were added to the bill, including one seemingly requiring all facilities to be based in the US in addition to a majority of employees.

Another withdrawn amendment, which is likely to be reintroduced with alternative wording, would seek to ban any site operating in the US post-UIGEA from obtaining a licence.

Other crucial amendments would ban the use of credit cards, block and site from offering sports betting and raising the minimum player age to 21.

The sum of these amendments would on the face of it make it unlikely any major poker site would be able to operate under its current format in the US market due.

Although the PPA was keen to stress nothing in the existing bill would restrict PokerStars and Full Tilt Poker from becoming licensed.

But it would suggest as some analysts have predicted a regulated US market would more likley see partnerships and joint ventures between online gaming firms and major US brands.

Bwin and PartyGaming have both previously announced they have started talks with interested parties in the US over partnership deals in a regulated market.

The bill, however, still faces an uphill battle to pass in this Congressional session and it may be next year before any final legislation is produced for a vote.