House Financial Services Committee Members Call on Congress to Prevent Implementation of Internet Gambling Ban

Apr 23, 2008, 01:00 ET from Safe and Secure Internet Gambling Initiative

    WASHINGTON, April 23 /PRNewswire-USNewswire/ -- The Chairman of the
 House Committee on Financial Services and other leading committee members
 are seeking broad support for new legislation that would stop the U.S.
 government from taking any steps to implement regulations that require U.S.
 financial institutions to police Internet gambling. Testimony before
 Congress earlier this month clearly showed that the proposed rules to
 implement the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA)
 are ambiguous and also not likely to stop millions of Americans from
 gambling online.
 
 
 
     "[R]epresentatives from the regulatory agencies themselves admitted
 that there are substantial problems in crafting regulations to implement
 the UIGEA in a manner that does not have a substantial adverse effect on
 the efficiency of the nation's payment system," wrote House Committee on
 Financial Services Chairman Barney Frank (D-Mass.), Ranking Member Ron Paul
 (R-Texas) and committee members Luis V. Gutierrez (D-Ill.) and Peter King
 (R - N.Y.) in a letter sent to all members of Congress.
 
 
 
     H.R. 5767 was introduced by Reps. Frank and Paul on April 10. It would
 prohibit the Department of the Treasury and Federal Reserve System from
 proposing, prescribing or implementing any regulations required by UIGEA.
 
 
 
     "These bi-partisan congressional leaders understand that the proposed
 regulations can't work. Their legislation would relieve U.S. financial
 services companies from the burden of policing the Internet and
 implementing a ban on Internet gambling that is doomed to fail," said
 Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling
 Initiative. "U.S. financial services companies should be focusing their
 undivided attention on the economy, not trying to stop people from
 exercising their freedom to use the Internet to play poker, bet on horses,
 or engage in other types of gambling activities."
 
 
 
     Earlier this week, Reps. Frank, Paul, Gutierrez and King called on the
 Department of the Treasury and Federal Reserve System to cease
 implementation of regulations related to UIGEA. In letters addressed to
 Treasury Secretary Henry M. Paulson, Jr. and Federal Reserve Chairman Ben
 S. Bernanke, they wrote, "Given the many other priorities that are pending
 at your agencies...we believe it would be imprudent for you to devote
 additional agency resources to this Sisyphean task."
 
 
 
     Representatives from the Credit Union National Association, Financial
 Services Roundtable, American Bankers Association and Wells Fargo & Co.
 testified about the burden they would unnecessarily face before the House
 Committee on Financial Service's Subcommittee on Domestic and International
 Monetary Policy, Trade, and Technology on April 2. They testified that both
 UIGEA and the proposed regulations were so ambiguous that they made it
 impossible to determine what may or may not be illegal activities.
 
 
 
     Their comments reflect the concerns echoed in the more than 200
 comments submitted to the Department of the Treasury and Federal Reserve
 System.
 
 
 
     Frank introduced legislation last year, the Internet Gambling
 Regulation and Enforcement Act (H.R. 2046), that would regulate Internet
 gambling. The bill would require licensed Internet gambling operators to
 put in place safeguards to protect against underage and compulsive gambling
 and ensure the integrity of financial transactions.
 
 
 
     A companion piece of legislation to the Frank bill introduced by Rep.
 Jim McDermott (D-WA), the Internet Gambling Regulation and Tax Enforcement
 Act of 2008 (H.R. 5523), would ensure the collection of taxes on regulated
 Internet gambling activities. According to a tax revenue analysis prepared
 by PricewaterhouseCoopers, taxation of regulated Internet gambling is
 expected to generate between $8.7 billion to $42.8 billion in federal
 revenues over its first 10 years.
 
 
 
     A copy of the letter on H.R. 5767 can be found at
 http://www.safeandsecureig.org/media/hr5767.pdf.
 
 
 
     About Safe and Secure Internet Gambling Initiative
 
 
 
     The Safe and Secure Internet Gambling Initiative promotes the freedom
 of individuals to gamble online with the proper safeguards to protect
 consumers and ensure the integrity of financial transactions. For more
 information on the Initiative, please visit www.safeandsecureig.org. The
 Web site provides a means by which individuals can register support for
 regulated Internet gambling with their elected representatives.
 
 
 
 
 
 
 

SOURCE Safe and Secure Internet Gambling Initiative
    WASHINGTON, April 23 /PRNewswire-USNewswire/ -- The Chairman of the
 House Committee on Financial Services and other leading committee members
 are seeking broad support for new legislation that would stop the U.S.
 government from taking any steps to implement regulations that require U.S.
 financial institutions to police Internet gambling. Testimony before
 Congress earlier this month clearly showed that the proposed rules to
 implement the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA)
 are ambiguous and also not likely to stop millions of Americans from
 gambling online.
 
 
 
     "[R]epresentatives from the regulatory agencies themselves admitted
 that there are substantial problems in crafting regulations to implement
 the UIGEA in a manner that does not have a substantial adverse effect on
 the efficiency of the nation's payment system," wrote House Committee on
 Financial Services Chairman Barney Frank (D-Mass.), Ranking Member Ron Paul
 (R-Texas) and committee members Luis V. Gutierrez (D-Ill.) and Peter King
 (R - N.Y.) in a letter sent to all members of Congress.
 
 
 
     H.R. 5767 was introduced by Reps. Frank and Paul on April 10. It would
 prohibit the Department of the Treasury and Federal Reserve System from
 proposing, prescribing or implementing any regulations required by UIGEA.
 
 
 
     "These bi-partisan congressional leaders understand that the proposed
 regulations can't work. Their legislation would relieve U.S. financial
 services companies from the burden of policing the Internet and
 implementing a ban on Internet gambling that is doomed to fail," said
 Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling
 Initiative. "U.S. financial services companies should be focusing their
 undivided attention on the economy, not trying to stop people from
 exercising their freedom to use the Internet to play poker, bet on horses,
 or engage in other types of gambling activities."
 
 
 
     Earlier this week, Reps. Frank, Paul, Gutierrez and King called on the
 Department of the Treasury and Federal Reserve System to cease
 implementation of regulations related to UIGEA. In letters addressed to
 Treasury Secretary Henry M. Paulson, Jr. and Federal Reserve Chairman Ben
 S. Bernanke, they wrote, "Given the many other priorities that are pending
 at your agencies...we believe it would be imprudent for you to devote
 additional agency resources to this Sisyphean task."
 
 
 
     Representatives from the Credit Union National Association, Financial
 Services Roundtable, American Bankers Association and Wells Fargo & Co.
 testified about the burden they would unnecessarily face before the House
 Committee on Financial Service's Subcommittee on Domestic and International
 Monetary Policy, Trade, and Technology on April 2. They testified that both
 UIGEA and the proposed regulations were so ambiguous that they made it
 impossible to determine what may or may not be illegal activities.
 
 
 
     Their comments reflect the concerns echoed in the more than 200
 comments submitted to the Department of the Treasury and Federal Reserve
 System.
 
 
 
     Frank introduced legislation last year, the Internet Gambling
 Regulation and Enforcement Act (H.R. 2046), that would regulate Internet
 gambling. The bill would require licensed Internet gambling operators to
 put in place safeguards to protect against underage and compulsive gambling
 and ensure the integrity of financial transactions.
 
 
 
     A companion piece of legislation to the Frank bill introduced by Rep.
 Jim McDermott (D-WA), the Internet Gambling Regulation and Tax Enforcement
 Act of 2008 (H.R. 5523), would ensure the collection of taxes on regulated
 Internet gambling activities. According to a tax revenue analysis prepared
 by PricewaterhouseCoopers, taxation of regulated Internet gambling is
 expected to generate between $8.7 billion to $42.8 billion in federal
 revenues over its first 10 years.
 
 
 
     A copy of the letter on H.R. 5767 can be found at
 http://www.safeandsecureig.org/media/hr5767.pdf.
 
 
 
     About Safe and Secure Internet Gambling Initiative
 
 
 
     The Safe and Secure Internet Gambling Initiative promotes the freedom
 of individuals to gamble online with the proper safeguards to protect
 consumers and ensure the integrity of financial transactions. For more
 information on the Initiative, please visit www.safeandsecureig.org. The
 Web site provides a means by which individuals can register support for
 regulated Internet gambling with their elected representatives.
 
 
 
 
 
 
 SOURCE Safe and Secure Internet Gambling Initiative