Unlawful Internet Gaming Act passes

Prohibition appears to be back and your personal freedoms are eroding, following the attachment of the Unlawful Internet Gaming Enforcement Act of 2006 to the SAFE Port Act of 2006 — a piece of “must pass” legislation. It passed without a recorded vote and no debate on the issue. A 270 day period for adopting regulations and enforcement procedures following signature by President Bush is in place. You can read the bill for yourself at http://www.rules.house.gov/109_2nd/text/hr4954cr/hr49543_portscr.pdf. The segment related to Internet gaming begins on page 212.

Using credit cards and other payment instruments for what the bill defines as “unlawful Internet gambling” is prohibited, and financial institutions are required to identify and block payments related for unlawful Internet gambling transactions.

The bill provides three exemptions:

1. horse racing under the Interstate Horseracing Act,

2.Indian gambling occurring on a reservation or between two reservations, and

3.Intrastate Internet gambling (within a state’s own borders)

In a statement released by Senator Bill Frist, “Gambling is a serious addiction that undermines the family, dashes dreams, and frays the fabric of society. Congress has grappled with this issue for 10 years, and during that time we've watched this shadow industry explode. For me as majority leader, the bottom line is simple: Internet gambling is illegal. Although we can t monitor every online gambler or regulate offshore gambling, we can police the financial institutions that disregard our laws.”

In my opinion, passage of this law is disingenuous at best and blatantly hypocritical at worst. It panders to the moral majority that Senate Majority Leader Bill Frist needs to further his own presidential aspirations, while burdening all free people with another sumptuary law we don’t need, and which serves no purpose whatsoever except to deprive us of our freedom to choose how to engage in recreational activities from within our own homes.

This law probably violates US trade treaty obligations and a ruling by the World Trade Organization in the dispute between Antigua and the United States (discussed extensively in this blog in prior months) because it bans foreign remote online gaming while favoring the forms of online gaming exempted by this new law, such as horse racing and online lotteries.

While many other nations are regulating and taxing online gaming, the United States is banning it. What’s really needed is a ban on any laws prohibiting personal conduct that does not harm others. Shame on us.

What's up with the proposed internet gaming ban? No one knows!

While Senate Majority Leader Bill Frist (R-TN), and House Speaker Dennis Hastert (R-IL), are still looking for a way to include an online wagering ban in the Defense Appropriations bill, Sen. John Warner (R-VA), the chairman of the Senate Armed Services Committee, said he opposes the addition of any out of scope measures to that bill.

In a letter to Frist that echoed comments made last week by Sen. Carl Levin of Michigan, the leading Democrat on the Senate Armed Services Committee, Warner wrote: "There is strong reason to believe a point of order will be raised should the (defense) conference report have out-of-scope bills attached."

If a senator raises a point of order, 60 votes would be required to allow the defense bill to proceed to a final vote.
Carolyn Weyforth, an aide to Frist, said negotiations on the defense bill are continuing among House and Senate members "so it isn't known if the Internet gambling ban will be included or not."

Weyforth said that when the negotiations on the defense bill are completed, Frist will decide "if other efforts will need to be made to address the (Internet gambling) issue."

Sen. John Ensign, (R-NV), a member of the conference committee negotiating terms of the defense bill, said he favors the formation of a federal commission to study the online wagering industry.

Ensign’s position mirrors that of The American Gaming Association, the chief casino lobbying group in Washington. In a statement issued a few days ago, they reaffirmed their support of a study of Internet gambling.

Many lobbyists are predicting the legislation is likely to linger until Congress returns after the elections, in what would be a lame duck session.

At this point, no one seems sure what — if anything — will happen regarding an online gaming ban. And no one knows when.

The Proposed Legislation that Just Won't Die

Although The National Right for Online Gaming (NROG) stated yesterday that Senator Bill Frist’s attempt to push through an online gambling ban before Congress breaks for elections has failed and no more action will be taken in the coming days, that’s not the case according to The Hill, a non-partisan, non-ideological weekly newspaper covering Congress and its members accessible online at www.hillnews.com/.

A September 26 story in The Hill reports that language to curb online was added back into the defense authorization bill this weekend.

According to The Hill, “Frist has been working hard to include some version of the Internet gaming language in the defense reauthorization bill in what a number of outside lobbyists see as a push to ingratiate himself with social conservatives and, more specifically, Leach, whose endorsement would be a big boost during the Iowa primary.

“The Internet gaming language would create an additional enforcement mechanism for federal officials to crack down on money transferred from banks, credit card companies and other financial institutions to gambling outfits overseas.

“This move to include an Internet gambling curb comes after Senate Armed Services Chairman John Warner (R-Va.) and Sen. Carl Levin (D-Mich.), the committee’s ranking Democrat, rebuffed Frist’s attempts to include it in the bill because it is not related to defense policy.”

But it’s not a done deal yet, as House Speaker Dennis Hastert (R-Ill.) continues to postpone a vote until negotiators from both chambers include unrelated measures on immigration and court security.

According to The Hill, “Lawmakers will work to include a number of non-defense items in this must-pass bill that is a regular vehicle for pet projects.”

Will Shana Hiatt be back on TV soon?

Former World Poker Tour hostess Shana Hiatt was NBC's top choice to replace Kathryn Tappen on National Heads-Up Poker Championship.

But when NBC sought permission to hire Hiatt, the WPT refused to release her from her contract. Hiatt responded by filing a lawsuit in the LA County Superior Court in Santa Monica against WPT Enterprises and Steve Lipscomb because they "unlawfully interfered with the right of television host and actress, Plaintiff Shana Hiatt, to pursue employment in the television industry."

The complaint also states that the WPT and Steve Lipscomb cited an illegal and unenforceable non-compete clause in a draft of an agreement that Hiatt never signed to threaten Hiatt and her future employers with legal action in the event that she appears on a poker themed television program produced by someone other than the WPT.

Hiatt seeks monetary damages for the WPT's conduct as well as injunctive relief that prohibits the WPT from "engaging in any conduct seeking to prevent or prohibit [Hiatt] from seeking employment with a third party other than WPT."

Hiatt has obtained a temporary restraining order that enjoins and restrains the WPT from preventing or prohibiting Hiatt from seeking employment with NBC.

It will be interesting to see how this plays out. From a public relations standpoint, this dispute seems to be a potential trainwreck for the WPT, but only time will tell.

Frist's attempt to ban online gaming starting to fizzle

Latest reports indicate that Senator Majority Leader Bill Frist's attempt to attach an internet gambling ban to a defense bill is beginning to fizzle.

One of Frist’s staffers confirmed that the Majority Leader approached Senate Armed Services Committee chairman John Warner, (R-VA) and asked him to add an Internet gambling ban to a defense authorization bill. Senator Warner discussed the issue with Michigan Senator Carl Levin, the ranking Democrat on the committee. Following the meeting, Warner rejected the amendment because a ban on online wagering ban is not relevant to defense legislation.

When learning of Frist’s proposal, Rep. Shelley Berkley, (D-NV) urged Warner to reject the amendment, saying, "We must not use this important (defense) bill as a convenient vehicle for political pet issues such as a ban on Internet gaming."

In a speech Frist made Sept. 5, the day Congress returned from its August recess, he stated that an Internet gambling ban was one of his priorities prior to the Congressional adjournment. Frist's second term expires this year, and he is not running for re-election.

Internet gambling bill still not tacked onto Defense Authorization

There may be some good news regarding the persistent rumors that the Defense Authorization will be amended to contain provisions of the Internet gambling bill. Congress Daily reported that, "Defense and security issues will dominate the congressional agenda again, with defense authorization conferees hoping to clear the way for a House vote by the end of the week and both chambers likely to consider legislation regulating the use of military tribunals to try terrorism suspects.”

After frequent meetings last week, the “Big Four” Republican and Democratic leaders of the House and Senate Armed Services committees will meet again in an effort to resolve a number of pending issues. The most contentious is a provision in the House language that allows military chaplains to pray in the name of Jesus Christ. House Armed Services Chairman Hunter has said he will not back down on the issue, while Senate Armed Services Chairman Warner opposes the language.

This doesn’t leave much room for compromise, and perhaps enough time will be taken up with these issues that the inclusion of the Internet gambling bill will fall by the wayside.

I certainly hope so.

Does the Senate plan to tie anti-gaming legislation to the Defense Appropriations bill?

Senate Majority Leader Bill Frist (R-TN) appears to be reaching out to his political base in advance of a presidential run by attempting to impose strict regulations on the online gambling industry. He’s doing this by tying a measure to the Defense Authorization bill.

Looking to buff up his credentials with conservative Christians like the Family Research Council, who play a critical role in the Republican presidential nominating process, Frist’s effort appears to stand a good chance of succeeding. The Senate plans to complete action on the defense bill next week. By tying his agenda to the Defense Authorization bill, Frist can court his political base while moving the anti-gambling legislation that has thus far stalled in the Senate.

Tying a special interest bill to major legislation that is very likely to pass, such as the Defense Authorization bill, is how most pork-barrel legislation is enacted into law. Knowing the anti-gambling legislation would probably fail if it had to stand on its own two feet, a back door approach seems to offer promise to Frist’s presidential aspirations.
The conservative Family Research Council has been leading the opposition for a ban on online gaming. Minority Leader Harry Reid, who has been a strong congressional advocate for his home state of Nevada's gambling industry, has not taken a public stand on the House bill.

The American Gaming Association, which represents the U.S. gambling industry, favors a commission to study the issue.

Stay tuned. We’ll bring you the latest developments as they occur.

The Telephone March on Washington

From what I've been able to gather the telephone march on Washington was a success. At least that's the buzz that seems to be out there.

I'd like to say that our efforts will convince voting legislators to change their minds and vote against H.R. 4411, the Unlawful Internet Gambling Enforcement Act that was passed by the U.S. House of Representatives earlier this summer, or better yet, take action to not even allow it see the light of day on the Senate floor.

I'm not so sure that will be accomplished in one fell swoop, but what I hope happens, and what will represent a success to me, is that elected public officials begin to realize that there really is a poker lobby, and it is big, and it has clout.

The poker lobby is so new that most members of Congress don't realize that an organization like the Poker Players Alliance has 100,000 members. It just doesn't come to mind when you say the word "poker" to them.

Compare that to other well established lobbying groups. Say the words "gun control" to any elected official and the following three things immediately will come to his or her political mind. 1. National Rifle Association. 2. Well organized group with loads of voters represented. 3. A deep war chest that I'd love to tap into for my campaign.

The NRA is a powerful lobbying group, but they've been around a while and they didn't get to where they are now -- big, powerful, and prominent -- over night. They worked the halls of Congress. And they worked them hard. The Poker Players Alliance can't expect to become that kind of force overnight either.

But they are getting there. With 100,000 members, they represent a lot of votes. And they ought to represent even more. They should represent everyone who plays poker -- professionally, recreationally, online or in a traditional casino -- they are a voice for our rights as poker players, and everyone who cares about the game should join and make their voice heard.

H.R.4411 is shameful; it is appallingly bad legislation. It is a hypocritical bill with cutouts exempting some from its provisions while punishing others. But more than that, it's a sumptuary law, and we have too many of these laws in our land right now. A free society gives free people the right to express themselves as they choose and to make decisions that affect their own life. For an elected body of public servants to believe that they are enabled to act as our parents, and can override decisions that -- in their opinion, but not mine -- are bad for me, they are casting themselves in the role of a parent and placing me in the position of a child who is not yet ready to make his or her own life decisions.

How ridiculous is that? I am not a child. The people I vote for represent me, and I do not give them the right to override my personal decisions. They are neither big brother, parent, nor nanny -- though their conduct shows that they fail to realize these limits.

Sumptuary laws are bad as a general case. But for us, the poker players of America, it's time to take one giant step to retain our freedom to engage in a civil game of poker -- online or in a casino or in someone's home -- without fearing Draconian measures from the people who work for us and whom we elected to represent us and protect our rights and responsibilities.

The best way to do that is to continue to educate, lobby, and pressure Congress so that they begin to behave like the our representatives, not our parents.

Losing Gracefully in the US Senate

Reuters reports that aides to Senate Republican leader Bill Frist say he is still trying to find a way to pass a bill to outlaw most forms of Internet gambling, but offered no guarantee that a deal could be struck before lawmakers recess at the end of September.

The report said Frist would like to bring up the bill under unanimous consent. Under this process, leaders from both parties agree to bring a bill to a vote on the Senate floor.

My own opinion is that if Frist is looking for unanimous consent as a condition under which he will bring this bill to the Senate floor, he is essentially doing so to give himself an out. He won’t get unanimous consent, and he knows it. And knowing it allows him to gracefully sidestep this bill while concentrating on other legislation he considers a priority.

It also allows him to bow out gracefully without ruffling the feathers of the bill’s sponsors. By failing to bring the bill to the Senate floor this way, he can take the loss without seeming like it’s a loss at all. Sounds very senatorial to me. What do you think?

The Phone March on Washington

I came across this and am reposting it here. Please join in by phoning your senator on Tuesday.

The Background
H.R. 4411, the Unlawful Internet Gambling Enforcement Act, was passed by the U.S. House of Representatives earlier this summer . The bill may now be considered by the U.S. Senate.

Here's What You Can Do to Stop This Legislation
Please call 800-289-1136 from 9:00 AM to 5:30 PM Eastern Time Tuesday September 12. This is a FREE phone call and will connect you directly to your Senators' offices. Here are some talking points for you to use:

1. I am voter in your state.

2. I strongly oppose any legislation that would prohibit online poker, and urge the Senator to vote against such legislation.

3. Poker is a skill game enjoyed by 70 million Americans.

4. The Senator should seek to regulate online poker much like the government regulates other forms of gaming, like lotteries.

5. Prohibitions don't work. Any legislation that tries to ban online poker will only drive those players underground.

6. Again, I urge the Senator to oppose any attempts to prohibit me from playing the great American game of poker on the Internet.

You can help to continue to enjoy online poker in the United States by taking action now. Just one phone call is all it takes.

Helpful Links
Click here for the latest on the bill in the Senate. http://tinyurl.com/pvdtp

Click here to learn about H.R. 4411. http://tinyurl.com/ll5sg Click here to visit the Poker Players Alliance website and become a member. Please help support our industry's lobby group. http://www.pokerplayersalliance.org/

Another British Sports-Betting Exec Detained in the USA

Sportingbet PLC, an online gambling company, said that its chairman, Peter Dicks, was detained in the United States. This comes two months after David Carruthers, former chief executive officer of BetOnSports PLC, was arrested while changing planes at the Dallas-Fort Worth Airport.

Although Sportingbet Chairman said a hearing has been scheduled for Peter Dicks, no further details were forthcoming. They even declined to specify where Mr. Dicks is being held.

At Sportingbet’s request, trading was suspended by the London Stock Exchange. Shares of rival online getting company PartyGaming PLC fell 5.5% following Dick's detainment, while Empire Online lost 3.1%.

The US government is taking names, and sports betting is a much easier target than other forms of online gaming because it clearly falls under the wire act. The handwriting on the wall is also abundantly clear: If you’re an executive in a firm that accepts sports bets from the US, you’d better make your travel connections outside of these borders.

World Poker Tour shows to air in Macau

WPT Enterprises Inc. has closed a deal that will bring the World Poker Tour television shows to a burgeoning Asian market.

The World Poker Tour's first season will be aired on Macau Cable in Macau. The second season is set to air on MediaCorp, Singapore’s largest broadcaster.

"With the long history of gaming in Macau and the recent licenses issued to a number of international gaming giants who will build or run major new casinos, this area is only going to get hotter," Gary MacKinney, WPTE executive director of international distribution, said in a statement.

We agree with MacKinney. Macau has long been the gaming center of Asia, and with a herertofore untapped market of newly rich potential gamblers, numerous new casinos going in, and televised poker shows to prime the pump, this market is going to grow bigger and faster than most of us can imagine.

Omaha/8 Expert Mark Tenner on Internet Radio this Thursday

For all of you Omaha/8 players that have been asking questions about the best strategies to play this game, you won’t want to miss this week’s radio show.

Omaha/8 expert Mark Tenner will appear on Keep Flopping Aces, the Internet radio show that Amy Calistri and I host on www.holdemradio.com. The show airs live Thursday night at 9:00 PM Eastern Time, and is also available in the station’s archives and as a podcast in i-Tunes.

If you’ve never attended one of Mark Tenner’s lectures on Omaha/8, you are missing a terrific learning experience. There is no one, in my opinion, who clarifies Omaha/8 theory like Mark Tenner. And if you want to improve your Omaha/8 game, tune in this Thursday night and listen.

USA - Antigua online gambling trade dispute comes to a head this week

We’ve talked about the government of Antigua’s trade dispute with the United States on this blog before. It’s been an ongoing dispute that Antigua has been hoping to resolve at the World Trade Organization (WTO).

The dispute has centered on whether the United States should drop prohibitions on Americans placing bets in online casinos. The World Trade Organization ruling said that some U.S. laws were in line with international commerce rules, but others were not.

Antigua’s position is that that the United States has taken no measures to comply with WTO recommendations and rulings. The U.S. takes the position that its laws are in line with trade rules.Antigua claims that online gaming is a lucrative source of revenue and provides an income for many islanders, and that US prohibitions harm the island nation's efforts to diversify its economy away from tourism.

This dispute might come to a head next week when a three-member WTO panel will meet in Geneva to determine whether U.S. legislation complies with an earlier WTO decision in an online gaming dispute with Antigua.

Dr. Errol Cort, Antigua’s Minister of Finance and the Economy, says that a three member panel has been selected and will be charged with reviewing the facts and rendering a decision within 90 days.

Dr. Cort said that Antigua remains open to discourse with the US to resolve this issue, and that the US might be willing to compromise in order to protect the future of the Antigua’s Internet gambling industry and the jobs it has created.

Guilty Pleasures: The Jerry Lewis Labor Day Telethon

Everyone has their guilty pleasures. Even me. And mine always occur this time of year.

In case you couldn’t guess, my guilty pleasure of choice is the Jerry Lewis Labor Day Telethon. Despite the high annoyance quotient of his personality, I still enjoy seeing Jerry cavort around the stage, trying to steal every other performer’s moment in the sun, and of course I respect the huge amounts of money he’s raised over the year.

But the telethon is a guilty pleasure. Where else can you see people who seem to come out only once a year to do their thing at this event? Last night I saw Julius LaRosa. I haven’t seen him in years, and guess what? He still doesn’t sing any better than did in his prime — and he never sang very well at all.

But the telethon really hits its stride late at night when every lounge act that’s ever appeared on the Las Vegas strip that’s still awake at that hour seems to find its way over to the telethon for an annual appearance.

Maybe guilty pleasure isn’t the right turn of phrase. Maybe it’s surreal pleasure. And speaking of surreal telethon pleasures, have you ever watched the Chabad telethon? After all, where else would you ever hope to see Bob Dylan dancing the hora with a Lubavitcher rabbi? Now that’s surreal.