PPA Executive Director supports online poker licensing and regulation

Pappas began his testimony by thanking Illinois Senate President John Cullerton for introducing legislation that seeks to establish strong consumer protections and accountability for Internet gaming. He also noted that efforts to regulate poker in the state should not be viewed as an expansion of gambling, but “would mean corralling the current unregulated marketplace and turning it into a system that is safe for consumers and accountable to regulators and our government.”

“Establishing a regulatory regime for online poker and online gaming in Illinois will result in an open and competitive licensed market which would be attractive to both local riverboat licensees and worldwide operators. It would also minimize unlicensed activities; generate significant tax revenue for the state government; and create new high tech jobs,” Pappas continued. 

With an established Illinois regulatory regime, market size would amount to approximately US$197 million Gross Gaming Revenue (GGR) in the first year from online poker alone and US$508 million GGR from the entire online gaming market, according to a recent H2 Gambling Capital economic study.
Pappas also provided detailed facts and examples to demonstrate how a combination of regulation and technology will always trump a ban on Internet poker in preventing underage gambling, ensuring identity verification, protecting problem gamblers, and deterring criminal activity.
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.
In concluding his testimony, Pappas urged the committee to learn from the successful licensing and regulation of online poker in Nevada, New Jersey and Delaware, and to join them in providing Illinois players with a safe environment to play poker on the Internet.