One of the provisions attached during markup of the Frank online poker regulation bill requires operators receiving licensing to be free from violations of previous gaming law, including the UIGEA.

Barney Frank's online poker regulation bill advanced to committee markup this week, and probably the most adopted amendments concerned blocking licensing of operators who've continued to service US residents because the passage of the UIGEA. Offered by Brad Sherman, a California Democrat, the addition denies US acceptance of gaming sites deemed to have flouted federal laws.

Sherman's amendment requires applicants to certify they've not intentionally violated any felony law within the US. A second amendment, by Representatives Spencer Bachus and Michele Bachmann, specified refusal of violators of the UIGEA.

Because of the confusing and problematic nature of the UIGEA, reputable online poker operators equivalent to Full Tilt and Poker Stars are hailing the advancement of the bill, mark ups and all, and say the provisions concerning legality are not any issue for them.

"PokerStars, a pioneer in operating online poker under stringent regulatory frameworks, looks forward to working with incumbent and new operators in promoting a secure and healthy online poker industry within the United States, because it currently does under similar licensing models in Italy and France," said the web poker operator's general counsel, Paul Telford, in a press release.

The PokerStars statement says its lawyers have given the opinion that its activities within the US have always been legal. Since the UIGEA doesn't define what online gambling is illegal, and the Wire Act was found by the courts to just apply to sports betting, there's no law on record declaring online poker or casino gambling to be illegal.

One of the needs of the Frank bill is to explain one and for all what gaming is legal on the web within the US. But, by looking to enforce the UIGEA while it's far from significance, the home Financial Services Committee has opened itself to difficult and potentially embarrassing argument over which internet sites obeyed questionable interpretations of a confusing law.

"Certainly, offshore online poker operators will see this as one of many adjustments within the original bill designed to create a protectionist setting favoring domestic land gaming companies over experienced European sites," says Online Casino Advisory gambling analyst Sherman Bradley. "Infringement accusations before the WTO won't depart without acceptance by the united states of gambling operators licensed by its trade partners."

Published on July 31, 2010 by K.C.Carmichael

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