Reid-Kyle Online Poker Bill to be Modified

November 26, 2012

The Poker Players Alliance (PPA) requested Senators Harry Reid and Jon Kyl to make a few changes to the online poker bill’s current draft in a letter dated November 2. Written by Alfonse D’Amato, PPA Chairman, the missive commended the senators for their efforts in trying to legalize and regulate online poker in the US.

D’Amato expressed the Alliance’s approval of the current draft, saying that the PPA is “pleased with many aspects of the draft.”  The Reid-Kyl bill provides a stable platform for states to carry out their own regulations, addresses consumer protection, generates revenue, and serves as an economic stimulus through job creation.

D’Amato has, however, singled out six areas of improvement, chief among them being the requirement for individual state legislatures to opt-in to the federal scheme. The PPA is of the opinion that the state legislature does not have to bear the burden of approving states already providing not-tribal, live commercial poker.

The PPA is also against the proposed waiting period of 15 months before operators can start to deal cards online. Reid and Kyl put in that provision to prevent operators from getting a jump on their peers, but D’Amato stresses that that delay is too long for professional and recreation players to wait. He also explains that Internet poker has been regulated by other countries successfully for years in much less time than 15 months.

The proposal has no allowance for international play and restricts expansion of player pools beyond the US soil, making this perhaps its most short-sighted aspect. Forging external agreements consumes time, but the PPA asserts that the increased player liquidity and revenue from international competition is a must.

The PPA also wants the bill to have a provision that directs “the IRS to formulate guidelines for reporting income from online poker prior to commencement of play,” as D’Amato stated in the letter.  In addition, he has suggested an amendment that ensures equal treatment of federal online poker, state lotteries, and Indian tribes. Finally, he has called the five-year ban on the licensing of online poker providers who were in operation in the US marketplace after the Unlawful Internet Gambling Enforcement Act (UIGEA) was enacted in 2006 unduly unfair, arbitrary, and possibly unconstitutional.

The Poker Players Alliance (PPA) requested Senators Harry Reid and Jon Kyl to make a few changes to the online poker bill’s current draft in a letter dated November 2. Written by Alfonse D’Amato, PPA Chairman, the missive commended the senators for their efforts in trying to legalize and regulate online poker in the US.

D’Amato expressed the Alliance’s approval of the current draft, saying that the PPA is “pleased with many aspects of the draft.”  The Reid-Kyl bill provides a stable platform for states to carry out their own regulations, addresses consumer protection, generates revenue, and serves as an economic stimulator through job creation.

D’Amato has, however, singled out six areas of improvement, chief among them being the requirement for individual state legislatures to opt-in to the federal scheme. The PPA is of the opinion that the state legislature does not have to bear the burden of approving states already providing not-tribal, live commercial poker.

The PPA is also against the proposed waiting period of 15 months before operators can start to deal cards online. Reid and Kyl put in that provision to prevent operators from getting a jump on their peers, but D’Amato stresses that that delay is too long for professional and recreation players to wait. He also explains that Internet poker has been regulated by other countries successfully for years in much less time than 15 months.

The proposal has no allowance for international play and restricts expansion of player pools beyond the US soil, making this perhaps its most short-sighted aspect. Forging external agreements consumes time, but the PPA asserts that the increased player liquidity and revenue from international competition is a must.

The PPA also wants the bill to have a provision that directs “the IRS to formulate guidelines for reporting income from online poker prior to commencement of play,” as D’Amato stated in the letter.  In addition, he has suggested an amendment that ensures equal treatment of federal online poker, state lotteries, and Indian tribes. Finally, he has called the five-year ban on the licensing of online poker providers who were in operation in the US marketplace after the Unlawful Internet Gambling Enforcement Act (UIGEA) was enacted in 2006 unduly unfair, arbitrary, and possibly unconstitutional.

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