he legislation, which passed by a 41-22 vote would regulate Internet gambling activity in the US and require licensed operators to put in place safeguards to protect against underage and problem gambling.
"The Committee's bi-partisan vote to approve Chairman Frank's legislation is nothing short of historic," said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative. "With Congress bitterly divided and only a handful of bi-partisan bills coming out of the Financial Services Committee, we're pleased Committee members from both sides of the aisle were able to come together to advance this important legislation."
During today's mark-up there were several amendments introduced from both sides of the aisle. Representative John Campbell offered, and the Committee approved, an amendment that would further strengthen the legislation's already strict consumer protections, including a requirement for licensed operators to have each customer choose his or her loss limits before being able to play on-line. Rep. Campbell's amendment also requires licensees to protect customers by ensuring the customer privacy and security and protecting against fraud and money laundering.
Chairman Frank's legislation, introduced in May 2009, would establish a regulatory and enforcement framework for licensed gambling operators to accept bets and wagers from individuals in the U.S. Beyond an array of required consumer protections, the legislation reinforces the rights of each state to determine whether or not to allow Internet gambling activity for people accessing the Internet within the state and to apply other restrictions on the activity as determined necessary.
As a companion to Representative Frank's bill, the Internet Gambling Regulation and Tax Enforcement Act of 2010 introduced by Representative Jim McDermott in March 2010, would ensure the collection of license fees and taxes on regulated Internet gambling activities.
Generating significant attention are the economic benefits of online gambling regulation. According to a Joint Committee on Taxation tax revenue analysis, regulated Internet gambling is expected to generate as much as us$ 42 billion in federal government revenue over its first 10 years. Additionally, a recent analysis by H2 Gambling Capital predicts that Internet gambling regulation would create as many as 32,000 jobs over its first five years. There would also be additional economic benefits associated with jobs creation.
"The momentum of today's vote and growing bi-partisan support for online gambling regulation demonstrates to congressional leaders in the House and Senate that this issue is a priority and should be addressed," said Waxman. "Leaving in place a failed prohibition should no longer be the government's misguided policy approach, leaving millions of Americans vulnerable as they continue to find a way to gamble online in a thriving underground marketplace."
The legislation has drawn the support of 69 bi-partisan co-sponsors. Support for the legislation was also announced last week by the U.S. Chamber of Commerce, the Financial Services Roundtable and the National Association of Federal Credit Unions.
The Safe and Secure Internet Gambling Initiative promotes the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions.