Pappas began his testimony noting that the PPA has been at the forefront of advocating for strong consumer protections and accountability in the online gaming industry. Therefore, the organization is in strong support of Congressman Barton's bill H.R. 2666 which "mandates technologies to protect consumers from fraud, eliminate underage access, and mitigate compulsive gambling behaviours - none of which exists today or would exist under a prohibition."
"Establishing a regulatory regime for online gaming in the U.S. would minimize unlicensed activities, generate significant tax revenue for the federal government and states, and create thousands of high tech jobs - benefits the states are recognizing and acting to embrace," Pappas continued.
Pappas also addressed allegations of those advocating for a ban on Internet poker by providing facts on how a combination of regulation and technology can meet these current challenges. Solutions to these four issues: keeping children safe, ensuring identity verification, protecting problem gamblers, and deterring criminals, are outlined below:
* To prevent underage gambling: Gaming site operators are required to implement state-of-the-art age verification software before being licensed and before accounts are opened and bets settled.
* To ensure identity verification: All online betting companies require customers to open an account to make a bet. Identity verification and know-your-customer requirements in the regulated online gaming space are as robust as those in the online banking space.
* To protect problem gamblers: Online gaming operators have more effective and sophisticated tools to prevent and combat problem gaming than brick-and-mortar casinos. Most regulated online gaming markets have required their licensees to ensure that measures are in place to prevent and combat issues associated with problem gaming.
* To deter criminals: It is far better for the players' financial fate if the safety and security of Internet gaming transactions are in the hands of the U.S. banking system, and the responsible and regulated American gaming corporations. Prohibition will only play into the hands of the criminal element.
To conclude his testimony, Pappas urged Congress to enact the Barton bill to provide U.S. players with a safe and well-regulated place to play poker on the Internet and, at a minimum, to do nothing to prevent states from licensing and regulating Internet poker.