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Bill Excludes Online Casino Offenders

The new online casino gambling bill that passed through the House Financial Services Committee has some elements that have watered down the initial intention of the bill although the core of legalization of the industry remains true. One of the key controversies spawned from revision of the bill in the Committee stem from the fact that internet poker sites that have operated in the US throughout the UIGEA will not be allowed licensing under the new regulatory structure. This is a hotly debated addition because the PPA and several interest groups claim that the UIGEA does not actually make internet poker illegal because it is not akin to the offshore online casinos. Internet poker is considered a game of skill by many so the currently operating US poker sites are outraged that the new bill amendments will exclude them from the US market.

Some of the major international poker operators though are not concerned by the wording that online casinos and internet poker sites that operated illegally are banned from receiving licensing because these sites feel they have always operated legally. PokerStars, a leader in the European and international markets noted that the controversial UIGEA did not specifically ban internet poker as a part of the illegal gambling activities and thus PokerStars’ current operations within the US market remain entirely legal.

This new online casino gambling bill is designed to really clarify the definitions regarding gambling in the US and give a much more structured definition moving forward. A good number of industry analysts feel that the provision about banning licensing of illegally operating gambling sites will mainly apply to online casinos and sports betting companies that accept US players – the first because of violation of the UIGEA and the latter because of the US Wire Act.