Bill HR2267 has been passed by the House Financial Services Committee but with several amendments. The bill, approved yesterday by a 41-22-1 vote, is intended to licence and regulate online gambling in the US. Barney Frank's Internet Gambling Regulation, Consumer Protection, and Enforcement Act has benefitted from bipartisan support and the bill was passed after being amended significantly.

One amendment called for changes on both the administrative and consumer protection sides of the proposed legislation, giving states and tribal authorities parallel authority to administer licenses and enforce regulations. It also requires licensees to maintain all online gambling facilities targeting U.S. residents within the United States. Another amendment gives states a full legislative session to opt out of the federal plan and specified that in order to get a licence the majority of the company's operation must be in the US. The bill in its present form maintains the illegality of sports betting on the Internet.

Player protection was a major concern expressed by amendments to the bill. Unethical marketing will be prohibited and controls must be in place to stop underage gambling. Players will be unable to use their credit cards to fund their gambling but debit cards and pre-paid cards will be allowed. A major amendment rules out the possibility of any person or entity applying for a licence if previously involved in online gambling in violation of state and federal laws.

Despite the success of the bill yesterday, HR2267 has a long way to go before it can become law. It must now pass a vote in the full House before going to the Senate. If it gets over these two hurdles then the law must be signed by President Obama before coming into effect, and all this must occur before the end of this year’s legislative session or face the whole process again next year. (E-07.29.10)

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