Sen. Menendez Unveils Online Poker Bill
Sen. Robert Menendez, D-N.J., introduced legislation Thursday that would allow federally-regulated online poker and other games of skill. The bill is designed to raise revenue while protecting families through a crackdown on predatory Internet gaming sites that target minors and fleece their customers. A 2006 law banned most forms of Internet gambling in the United States and some members have been trying to get the statute repealed or significantly modified.
Under the Menendez bill, gaming companies would have to undergo a thorough review by the Treasury Department including an analysis of the financial condition of the applicant, business record, and background checks. In addition, an applicant must submit a full financial statement, corporate structure documentation, and a certification that the applicant agrees to be subject to U.S. gambling laws. The Treasury could deny licenses for any firm believed to not meet the criteria set by the government. The measure proposes a license term of five years and renewal would be subject to the same requirements.
The Treasury would be directed to develop guidelines for ensuring age verification and that bettors are physically located in a jurisdiction where gambling is legal. The agency would also have to ensure all taxes due are collected. Further, there are requirements to combat fraud, money laundering and compulsive gambling and to ensure games are fair and bettors' privacy is protected. Licensed sites would have to pay a 10 percent tax on all deposits into playing accounts, the proceeds of which would be split evenly between the federal government and the government of the state where the player is located.
"Pulling Internet poker out of the shadows and into the light of the law, we have the opportunity to help our economy while protecting our families," Menendez said in a press release. "By bringing these games of skill into the mainstream, we can generate billions in revenue for businesses and the Treasury during these tough times." Estimates have shown that more than $3 billion in annual revenue can be raised by licensing and regulating Internet poker, according to his office.
The Poker Players Alliance lauded Menendez's measure. "The tides are turning and support for licensing and regulating Internet poker versus infringing on Internet freedom is growing," PPA chairman and former Sen. Alfonse D'Amato said in a statement. A spokesman for the Safe and Secure Internet Gambling Initiative said the bill is a "move in the right direction" but the group believes a regulated environment should be broadened to allow wagering on poker along with other games. House Financial Services Chairman Barney Frank has proposed such a bill.
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