Federal bill looks to exploit DoJ's Wire Act clarification
Congressman Peter King states that federal legislation "needs to be updated" " bill would allow for all forms of gambling except sports betting
A federal egaming bill published by Republican Representative Peter King seeks to take advantage of the Department of Justice’s clarification of the Wire Act by pushing to legalise all forms of online gambling with the exception of sports betting.
King’s bill, first mooted in May, was originally expected to restrict egaming to poker only.
The clarification, issued in December 2011, states that the Wire Act did not apply to forms of online gambling other than sports. Representative King (Rep-NY) argues in that as this has prompted a number of states and Indian tribes to introduce online gambling legislation, a federal bill is necessary to ensure consumer protection.
In the text of the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013, he argues that federal legislation “needs to be updated” to “strengthen enforcement”. King adds that doing so would “ensure a framework that protects consumers and the ability of states to enforce laws relating to internet gambling.”
The bill explains that due to the number of different regulatory frameworks devised by the likes of Delaware, New Jersey and Nevada means that states “could have difficulty enforcing internet gambling restrictions within their borders, especially against out-of-State operators”.
As well as regulating all products aside from sports betting, King’s proposals would see a new treasury department, Office of Internet Gambling Oversight, set up to create a centralised standard for states and tribal associations looking to establish licensing regimes. These entities would also be able to opt out of regulating online gambling by giving notification to the Treasury, or passing their own laws to ban gambling within their jurisdictions.
Legislation would also seek to make no distinction between different types of licensees, treating Indian tribes, lottery, and casino operators equally, with no group to be shown preferential treatment in the licensing process.
King also proposes an amendment to the Public Services Act to allow for federal funds to be used to help fund treatment for gambling addiction, while the bill recommends a “Compulsive Gaming, Responsible Gaming, and Self-Exclusion Program” be devised. Strict controls would also be introduced to prevent underage gambling.
All licence applicants would have their systems subject to independent testing in order to “ensure the integrity, accountability, and randomness of play and network security”.
Nevada Senators Harry Reid and Dean Heller are also working together on separate federal online poker legislation. Reid (D-NV) and Heller (Rep-NV) had teamed up to devise a bill last year, which was ultimately not introduced due to a lack of support.