Financial Services Committee Passes Online Gaming Bill

The House Financial Services Committee approved a bill that would allow Internet gambling operators to acquire licenses allowing them to take wagers from Americans and overturn the ban on financial transactions between banks and online gambling sites. The Internet Gambling Regulation, Consumer Protection, and Enforcement Act passed the committee by a 41-22 vote.

The next step is for the bill to be considered by the entire House of Representatives. This step could occur as soon as September.

While the bill would provide a legal framework for online gambling in the United States, there are several restrictions that it would also put into place. For instance, the bill would continue the prohibition on sports gambling, which is a major sector of the online gambling industry. Gambling operators would also be prohibited from taking deposits by credit cards; they would need to use debit cards, prepaid cards, or online wallet services instead.

According to House Financial Services Committee communications director Steven Adamske, this provision was put into place to help prevent players from getting in over their heads.

"People can run up tens of thousands of dollars by using credit cards and this was a good way to put a check on gambling habits," he said.

Other rules that would be put into place would include restrictions on marketing to or taking bets from underage gamblers, the implementation of a voluntary exclusion list for problem gamblers, and stop loss limits. Licensees would also have to have a substantial presence in the United States, and consult with Native American tribes on how their sites would be implemented.

Several hurdles still remain before the bill could become law. The equivalent legislation in the Senate has yet to have a hearing, and there is relatively little time left before the midterm Congressional elections. However, the vote was still seen by a victory by the online gambling industry, as well as groups such as the Poker Players Alliance.

“I’m glad the Financial Services Committee today overwhelmingly chose to act and protect Americans, as well as preserve the fundamental freedoms of adults and the Internet,” said Alfonse D’Amato, who serves as the current PPA chairman and is a former U.S. Senator. “This is a great day not only for poker players, but for proponents of Internet freedom and individual liberty.”