Yesterday the American Gaming Association (AGA) released a statement regarding the Commerce, Manufacturing and Trade subcommittee hearing entitled ‘Internet Gaming: Is there a safe bet? According to Frank J Fahrenkopf Jr, President and CEO of AGA, the safe bet would be to allow states, following federal guidelines, to licence and regulate online poker. “Such action would protect U.S. consumers, keep children from gambling on the Internet, and provide the tools law enforcement needs to shut down illegal Internet gambling operators. It would also create new jobs and tax revenue at a time when our country sorely needs both.”
Frank Fahrenkopf's testimony, entered into the record during the hearing, contends that new technology and processes used in ecommerce have been successfully adapted in jurisdictions where Internet gambling is legal, such as Great Britain, France, Italy and provinces in Canada, to keep minors from betting online and prevent illegal activities, such as money laundering and fraud. The AGA supports state licensing and regulation, following federal guidelines, on online poker because it is substantially different from other forms of gaming. First, it is a game that vast numbers of Americans have historically played and that millions of Americans still play. Second, unlike other forms of Internet gambling, poker is primarily a game of skill and is played between or among individuals, whereas in other forms of Internet gambling the customer is playing against the ‘House.’
“The subcommittee today heard clear evidence that millions of U.S. residents who play online are being put at risk
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because they are playing illegally with companies that are poorly regulated and, in the vast majority of the cases, outside the reach of U.S. law enforcement. The only way to protect U.S. consumers and ensure that minors aren’t gambling on the Internet is to allow the states to license and regulate the online poker.”
The AGA does not support any specific regulation but insists any new law should contain the following provisions: Each state should have the right to determine whether online poker should be legalized within their jurisdictions; Federal guidelines should be established that the states must follow to insure a consistent regulatory and legal framework; U.S. law enforcement should be provided with the ability to go after illegal operators and successfully prosecute them.
The statement issued by Frank Fahrenkopf concludes: “We welcomed the hearings today and urge Congress to act to protect the U.S. consumer and ensure that online poker is being provided by law abiding, responsible companies.” (E-10.26.11)
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