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Congress to Hold Hearings Friday on Bills Affecting Online Poker

The House Committee on Financial Services is going to discuss a pair of bills that could have a huge impact on the future of online poker in the United States.

On Friday, the Congressional committee is set to examine two bills that were introduced by chairman Barney Frank (D-Mass.): the Reasonable Prudence in Regulation Act (H.R 2266) and Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267). The former would delay implementation of the Unlawful Internet Gambling Enforcement Act by a year — the rules for that bill are set to go into effect on June 1 of this year. The latter is a bill that would regulate and legalize online gambling. That bill, if passed, would essentially nullify the UIGEA. The UIGEA a law which tells financial institutions not to conduct business related to online gambling, directing banks to screen new commercial customers and reject applicants who plan to operate as an “illegal gambling entity.”

The hearing is scheduled for 10 a.m. on Friday, in the Rayburn House Office Building in D.C.

According to Michael Waxman, spokesperson of the Safe and Secure Internet Gambling Initiative:

This hearing will provide further evidence that UIGEA is a poorly-crafted law that simply does not work. A more common sense approach to protect Americans is required. We expect this hearing to provide further impetus for the House Financial Services Committee and Congress to address this issue and move forward Chairman Frank’s regulatory bill.

The UIGEA has been under fire by opponents because it is vague, ambiguous, and difficult for the U.S. government to enforce. Partly because of those concerns, the rules for putting the UIGEA into place have already been delayed once by the Treasury Department and the Federal Reserve System — from December of last year to June of this year. Reports have said that another delay will not take place, unless there is intervention by Congress.

While a delay of UIGEA implementation would be another victory for online poker players in the U.S., the goal for those players is to see the law taken off the books altogether. That’s what H.R. 2267 would provide. The bill, introduced to Congress about a year ago, would provide a regulatory framework for online gambling, and it would give states the ability to determine whether online gambling is allowed in their jurisdiction.

Before this announcement, there had been little good news legally for the online poker industry this week. A grand jury in New York is currently investigating Full Tilt Poker for money laundering, and Kentucky is suing the online poker site.

The hearing coincides neatly with a charity poker tournament in D.C. two days earlier, in which some congressmen are expected to play. An “Ante Up for Africa” event, hosted by Annie Duke, will give poker some good press heading into the hearing.

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