AGA to Propose New Online Gambling Bill

In one of the first bits of negative news around the proposed bill, the American Gaming Association has reportedly announced that they will not be backing Joe Barton’s legislation that would legalize and regulate online poker in the United States. The AGA has said that they will instead push their own bill, though it is unclear how it would differ fundamentally from the Barton bill.

The Barton bill – known officially as the Internet Gambling Prohibition, Poker Consumer Protection, and Strengthening UIGEA Act of 2011, came in response to the outrage following the Black Friday indictments of several figures involved with the largest poker rooms serving consumers in the United States, including PokerStars and Full Tilt Poker. The bill would allow American casino operators or race track owners toset up online poker sites that would be regulated by the federal government. Individual states would have the right to opt out of the legislation, though all states would default to being included when the bill was passed.

According to a report at CompatiblePoker.com, the AGA’s bill is largely similar. Both bills would be expected to generate significant revenue both for the states and the federal government. Individuals who made a profit playing online poker would be expected to report that income and pay taxes as appropriate. It appears that the AGA bill would also add user fees that would collected by the federal government, something Barton’s bill does not specify.

The AGA – a powerful lobbying group that represents the casino industry – originally seemed mildly positive on the Barton bill, and it doesn’t appear as though they strongly oppose it. Originally, the group’s stance was to praise the bill’s attempt to properly regulate the industry, but not back any one bill in particular.

It remains unclear if or when the AGA bill will be introduced. Barton’s bill must first pass through relevant committees, and would then be subject to a vote in front of the entire House of Representatives. Given the many steps required and the time it would take to organize a working structure, it will likely be a year or more before government-regulated poker sites are a reality in the USA.