If Rep. Joe
Barton had his way, it would be legal for Americans to bet money on online
poker.
The Texas
Republican, senior member of the House Energy and Commerce Committee and an
avid poker player, is readying a bill that would legalize online poker and
create a new federal regulatory agency to oversee the websites.
But Barton
isn't the only lawmaker pushing the issue
on the federal level. Rep. Jim McDermott, D-Wash., will reintroduce legislation
to tax licensed Internet gaming in the United States. His measure is a companion to
legislation introduced by Rep. Barney Frank, D-Mass., that would legalize and
regulate online gambling.
"Legalizing,
regulating and taxing Internet gambling just makes sense," McDermott said.
"Right now, the U.S. loses billion of dollars to
off-shore gambling and illegal gambling rings because of an unrealistic and
virtually unenforceable policy."
A spokesman
for Barton on Monday said the bill is still being drafted and he expects it to
be released next week, at the earliest.
"He is
very serious about getting something done," said Sean Brown,
communications director for Barton, who has faced angry, poker-playing
constituents upset by the U.S. Department of Justice's April crackdown on PokerStars, Full
Tilt Poker and Absolute Poker.
Federal
officials claimed the websites violated a 2006 law banning payments for online
gambling and requiring payment processors to block payments for online wagers.
Online poker
is not illegal in the United States, but processing payments is.
While the bill
would legalize online poker, other forms of Internet gambling and wagering
would remain illegal. Barton describes his measure as a "consumer
protection bill."
Under the
legislation, online poker sites would have to be registered in a state where
gambling is already allowed, such as Nevada. The Nevada Gaming Commission would
be in charge of ensuring the sites operate within state guidelines.
Barton's bill would also create a new
regulatory body to oversee Internet poker at a federal level.
"The
current prohibition of online gambling has failed and made countless American
vulnerable to fraud, identity theft and money laundering," said McDermott,
who first introduced his legislation in 2009.
His revised
bill's provisions include an incentive for
states and tribes to participate in the form of a 6 percent tax on gambling
deposits; two new revenue set-asides designating 25 percent of the funds for
foster kids; and 0.5 percent reserved for historic preservation and the arts.
Tax
incentives would be used to encourage illegal sites to operate within the law,
while Internet gambling would not be part of the current tax exemptions given
to the horse and dog racing as well as jai-alai.
McDermott
said the revised legislation "would help states collect much-needed
revenue."
Contact
reporter Chris Sieroty at
or 702-477-3893.
