US Representative Barney Frank doubles down on online gaming

“I was very disappointed to hear of the allegations,” said Frank, referring to accusations that campaign donors Howard Lederer, Rafael Furst and Chris Ferguson of Full Tilt Poker defrauded online players of millions of dollars. “But it doesn’t change my views,” Frank said. “If anything, it strengthens them. Online gambling should be legal, so government can regulate it.”

Critics yesterday blasted Frank and others, including Senator Harry Reid and President Obama, for taking money associated with an illegal business. Frank also drew fire for taking donations from an industry that he would regulate.

“Frank should refund every nickel of the tens of thousands in campaign donations linked to online gambling,” said state GOP spokesman Tim Buckley. “It appears Mr. Frank is another congressman willing to associate with criminals.”

Frank, who sponsored a 2007 bill to legalize online gambling, said he would put donations from Lederer, Furst and Ferguson into a special account and donate it to a fund for victims if the Justice Department sets one up - and if the men are found guilty. But Frank said he sees no reason to return tens of thousands in contributions from others affiliated with Full Tilt or the online gambling industry - even though the offshore Web sites have been illegal here since 2006.

Frank compared it to the Prohibition era, calling the Full Tilt probe a waste of law enforcement resources: “The U.S. attorneys haven’t done enough about mortgage fraud. They should be spending less time on full houses and more time on empty houses.”

Sheila Krumholz of the Washington-based Center for Responsive Politics said, “There’s certainly the potential for conflict of interest here, and this is an illegal industry.” She noted Frank was the top recipient of campaign cash from the Poker Players Alliance Political Action Committee, which received hefty contributions from the three accused men, in the past two election cycles. “He’s clearly on their radar screen as someone they need to befriend.”

“Representative Frank may be taking contributions from backers of an ‘illegal industry,’ but he’s not alone,” Krumholz said. “Other such industries - casinos, liquor and gun manufacturers - also play the Washington influence game, but this one is still illegal. And Frank’s donors associated with Full Tilt Poker’s alleged Ponzi scheme certainly doesn’t help matters.”