Online Gambling Legalization in The US Can Really Happen
Barney Frank – the chairman of the US Financial Services Committee – has introduced a bill that would legalize and regulate online gambling in the country. The bill is called the Internet Gambling Regulation, Consumer Protection, and Enforcement Act of 2009 (IGRCPEA). Though this new law can be considered similar to Frank’s previous bill called Internet Gambling Regulation and Enforcement Act of 2007, it is a more through carefully worked out law, where the main emphasis is laid on customer protection. This emphasis can convince oppositionist of online gambling legalization of the necessity of adopting the bill. The viewpoint of the previous law opponents was based on the children and problem gamblers concern. But the additions to the newly created bill carefully stipulate those controversial aspects.
According to the bill, any enterprise that wishes to provide online gambling services to citizens of The US must go through a severe licensing process that will be carried out by the Department of Treasury. Accepting wagers from US residents will be illegal for any online gambling enterprise without a license. The bill states that the US gambling licenses will be valid for 5 years with an opportunity to be renewed. The licensing process will involve deep and intensive inspection and check of such aspects as:
· Criminal background
· Financial condition
· Corporate structure
· Experience
· General suitability to run an online gambling business
Licensees will be obliged to guarantee that a number safeguards are in place and in full operation. This list includes:
· Prevention of underage gambling
· Ensure that customers are playing from permissible locations
· Collection of applicable taxes when proceeds from gambling are paid to the customer
· Payment of applicable taxes to the federal government, as well as proper record keeping
· Combat fraud, money laundering, and terrorist financing
· Combat problem or “compulsive” gambling
· Protect customer privacy
Also the licensees are obliged to obey the standards of such state programs as Problem Gambling, Responsible Gambling, and Self-Exclusion. The rules and standards of the programs will be elaborated by the Department of Treasury and the States.
It is also important to highlight the following limitation, made by Barney Frank:
“ELECTRONIC CHEATING DEVICES PROHIBITED — No person initiating, receiving, or otherwise making a bet or wager with a licensee, or sending, receiving, or inviting information assisting with a bet or wager with a licensee, knowingly shall use, or assist another in the use of, an electronic, electrical, or mechanical device which is designed, constructed, or programmed specifically for use in obtaining an advantage in any game authorized under this subchapter, where such advantage is prohibited or otherwise violates the rules of play established by the licensee.”
One of the most controversial aspects of the bill presented by Barney Frank is the state opt-out selection. Although the bill is aimed at legalizing online gambling US-wide, every individual state will have a right not to allow this kind of online business within its borders. It means that those states that will not support the bill adoption will simply opt-out and disallow online gambling in them. Anyway, the opt-out clause is needed to Barney Frank in order to get the necessary support for passing the bill and proceed with the legislation.
save this post as PDF
(2 votes, average: 5 out of 5)
Loading ...