Senate hearing reinforces calls for federal regulation
State-by-state solution not seen as effective enough to tackle egaming "Wild West" by US Senate subcommittee
US lawmakers including Senator Dean Heller criticised the existing online gambling environment and called on Congress to introduce federal regulation to address illegal activity during a senate subcommittee hearing yesterday.
Speaking at the Senate Commerce Subcommittee on Consumer Protection, Product Safety and Insurance, Heller described the current internet gaming industry as “the Wild West” which a patchwork of state laws would not be efficient enough to combat.
Jack Blum, an attorney who specialises in money laundering cases, said a federal regulatory body was needed for licensing and called for “sophisticated legislation that should happen sooner rather than later”.
Senator Claire McCaskill added regulation was needed from Washington to protect consumers as “the borderless internet does not recognise the boundaries and jurisdictions of individual states”.
Other concerns highlighted during the hearing included gambling addiction, child protection, advertising, money laundering and terrorism.
Speakers praised the 2006 Unlawful Internet Gambling Enforcement Act but derided the 2011 interpretation of the 1961 Wire Act which suggested the legislation only applied to sportsbetting.
“The reason the administration changed this was so their friends in Illinois and New York could put their lottery tickets online,” Senator Heller said. “With one decision, the DOJ effectively rendered all laws that have been on our books, put together by members of Congress over 50 years…useless to regulate and stop internet gambling.”
The hearing follows the introduction of a new federal online poker bill, the Poker Freedom Act, by Representative Joe Barton last week. Barton said earlier this week he expects to hold talks with Heller and fellow Senator Harry Reid in the near future.