AGA Gives Support to Online Poker Regulation

The American Gaming Association has announced their support for an online poker bill that would regulate the industry at a federal level in the United States, but says that none of the current proposals match the vision they see for regulated online poker.

AGA Chief Executive Frank Fahrenkopf says that he expects a new online poker bill to be introduced to Congress before the end of the year. According to Fahrenkopf, a bill introduced by Representative Joe Barton (R-Texas) is closer to what the industry would find acceptable than one introduced by Representative Barney Frank (D-Massachusetts). However, both included regulation at the federal level, while the AGA would prefer state-level regulation.

In addition, the AGA would like to include their “code of conduct” in any online poker legislation. This code would require poker sites to undergo regular audits of their software, include controls that prevent underage gambling, and take steps to prevent money laundering.

Much of the momentum behind the move to regulate online poker has come in the wake of Black Friday, when indictments were made against Full Tilt Poker, PokerStars, Absolute Poker and several payment processors. The story shed light on just how many Americans had significant money on offshore poker sites – as well as how the current system both failed to stop Americans from playing and left those same Americans with little in the way of consumer protections.

"We're perhaps closer to federal legislation than we've ever been," Fahrenkopf said. "There's a buzz in Washington about the need for action."

Regulating online poker inside the United States would allow players to have protections afforded by US law enforcement, he added. In addition, a regulatory scheme in the United States would allow the government to collect tax revenues from online poker sites – a popular idea during a time of heated debate over budget issues.