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Breaking News

UIGEA's regulations will not be taking effect on December but have been delayed six month to June 1, 2010. Announcement will be made Friday in Washington D.C.

The House Financial Services committee will have a hearing on Rep. Franks (D.MA) Bill H.R. 2267 "The Internet Gambling Consumer Protection and enforcement Act of 2009 on Thursday, December 3, 2009.

Airtime: Wed. May 6 2009 | 5:20 PM ET

Rep. Barney Frank, D-Mass., introduced on Wednesday a bill to legalize Internet gambling. Supporters say it could yield billions in tax revenue, but others say it could raise gambling addiction. Les Bernal, of Stop Predatory Gambling, and Gary Ehrlich, of Catania Gaming Consultants, debate the issue.

Play the video:
http://www.cnbc.com/id/15840232?video=1116070423&play=1

For Immediate Release: Contact: Steve Adamske (202) 225-7141
May 5, 2009 or Elizabeth Esfahani (202) 226-3314

Advisory: Frank to Hold Press Conference to Unveil Internet Gambling Legislation

Washington, D.C. – Tomorrow, Financial Services Committee Chairman Barney Frank (D-MA) will hold a press conference to unveil legislation that will enable Americans to bet online and put an end to an inappropriate interference with their personal freedom.

The new bill would create an exemption to the Unlawful Internet Gambling Enforcement Act (UIGEA) for operators that are licensed and regulated. UIGEA, which was enacted in 2006, restricts the use of the payments system for Americans who seek the freedom to gamble online.

WHO: Financial Services Committee Chairman Barney Frank
WHAT: Press Conference to Discuss Legislation to Enable Americans to Bet Online
WHEN: Wednesday, May 6, 2009 10:00 a.m.
WHERE: Room 2220, Rayburn House Office Building

Reporters who cannot attend the press conference will be able to access a listen-only conference call. For dial-in information and password, email Elizabeth Esfahani at elizabeth.esfahani@mail.house.gov.

European Commission Investigation Finds U.S. Laws on
Internet Gambling Violate Trade Agreement

U.S. regulation of Internet gambling would resolve trade dispute

(Washington, D.C. – March 27, 2009) As part of a formal investigation, the European Commission has issued a preliminary report that finds U.S. laws on Internet gambling are legally not justified and discriminatory. The report found that the treatment of foreign Internet gambling operators by the U.S. under existing domestic law constituted a barrier to market access for European companies and is inconsistent with World Trade Organization (WTO) rules. Legislation previously introduced by Rep. Barney Frank (D-Mass.) would resolve the trade dispute by regulating Internet gambling and creating a level playing field among domestic and foreign Internet gambling operators.

“The European Commission investigation further highlights the need for the Obama Administration and Congress to regulate Internet gambling not only to protect consumers, but in order to restore integrity to the international trade system,” said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative. “The Obama Administration should seek to forge a new direction on Internet gambling, rather than keeping in place a protectionist trade policy that hypocritically discriminates against foreign online gambling operators.”

E.U. Trade Commissioner Catherine Ashton released a statement that encourages the U.S. to regulate Internet gambling as a way to address this issue. “It is for the US to decide how best to regulate Internet gambling in its market, but this must be done in a way that fully respects WTO obligations. I am hopeful that we can find a swift, negotiated solution to this issue," said Commissioner Ashton.

Rt Hon. David Blunkett MP, former U.K. Home Secretary and current Member of the U.K. Parliament joined in calling for U.S. regulation, saying, "I fully support the call by the EU Trade Commissioner, Cathy Ashton, for urgent U.S. action to regularise the trade relationship, respect WTO rules and to regulate online gambling. This would provide not only fair competition, but protection for individuals and families, and a legal basis on which substantial revenue could be raised at a time of considerable pressure on public finances."

The investigation by the European Commission is the result of a Trade Barrier Regulation complaint filed by the Remote Gambling Association (RGA), which represents the largest remote gambling companies in Europe. In its complaint the RGA claims the United States violates international trade law by threatening and pursuing criminal prosecutions, forfeitures and other enforcement actions against foreign Internet gambling operators, while allowing domestic U.S. online gambling operators, primarily horse betting, to flourish.

At the conclusion of the investigation, the European Commission could pursue discussions with the U.S. to find an appropriate solution to end the discrimination. If the parties cannot settle the matter themselves, the Commission could bring a case against the U.S. to the WTO.

A recent analysis found that the U.S. could receive as much as $51.9 billion in federal revenue over the next decade if Internet gambling is regulated as proposed in legislation previously introduced by Representatives Barney Frank (D-Mass.) and Jim McDermott (D-Wash.).

Press release issued today, March 27, 2009 by Safe and Secure Internet Gambling Initiative

A Kentucky Court of Appeals Reverses Lower Court Ruling Allowing Internet Domain Seizures
January 21, 2009

The Kentucky Court of Appeals in a ruling yesterday reversed a lower court ruling that allowed seizure of 141 Internet domain names. Kentucky Governor Stephen Beshear had sought to seize the gaming domain names alleging it was to protect Kentucky’s gaming industry.

In a 2-to-1 majority opinion, the court over ruled lower court Judge Thomas D. Wingate by blocking the seizure orders issued by the Judge Wingate for the Internet gambling domain names. Judge Michelle M. Keller, in her majority opinion, found that Internet domain names for online gambling web sites were not illegal "gambling devices" as defined by Kentucky law, as had been claimed by attorneys representing the Kentucky, in their attempt to take control of the domain names from their owners. Judge Keller stated “[I]t stretches credulity to conclude that a series of numbers, or Internet address, can be said to constitute a "machine or any mechanical or other device...designed and manufactured primarily for use in connection with gambling." Judge Keller further stated. "We are thus convinced that the trial court clearly erred in concluding that the domain names can be construed to be gambling devices."

Judge Jeff S. Taylor, also writing for the majority, added that the Commonwealth could not seek a civil forfeiture based on a criminal statute when there had been no criminal proceeding. Since there had been no criminal proceeding or conviction against any of the Internet domain name owners, the Commonwealth could not take control of their property.

Plaintiffs in the action were iMEGA and the Interactive Gaming Council. John Fitzgerald, executive director of the Interactive Gaming Council said, “As a result of the appeals process an informed and judicious decision has been made, which confirms our original views on these proceedings. IGC members are pleased and we stand committed to continuing our advocacy of a regulated online gaming industry.”

Kentucky Gambling Case Moves to Appeals Court
By Dan Cypra | Published Nov 15 2008, 12:08 AM

Kentucky Internet Domain Name Seizure Case Continues

The unprecedented Kentucky case in which the State is seeking forfeiture of the Internet domain names of 141 gambling web sites is continuing.

Last month, the State of Kentucky filed a complaint requesting the “seizure and forfeiture of Internet domain names used to promote, conduct and/or advance illegal gambling within . . . Kentucky.” The theory of the complaint appears to be that, insofar as the domain names have been used to conduct illegal gambling in Kentucky, the names constitute “gambling devices,” which are forfeitable under state law.

The case is also unusual in that, in lieu of state attorneys, Kentucky hired a private, class-action law firm to prosecute the case. Representatives of the State have indicated a willingness to “sell back” the domain names to their owners in exchange for the payment of “damages” to Kentucky. This aspect makes the whole proceeding smack of an attempt at legalized extortion.

Although the Court signed an order granting preliminary relief, legal opposition to the State’s position has grown. Of particular note, iMEGA filed a motion to dismiss on the most significant ground previously pointed out by commentators on the case: that in attempting in effect to regulate interstate and international Internet commerce, Kentucky is exceeding its jurisdiction, and that its actions will be vulnerable in the federal courts.

A hearing was held on October 3, but further proceedings are now scheduled for October 7.