8/6/2019 [Talking Points] H.R. 2366: Regulating Internet Poker is Good Public Policy

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H.R. 2366: Regulating Internet Poker is Good Public Policy

The status quo does not work…

Internet poker is a worldwide phenomenon which has continued to grow for more than adecade. Prior to the Department of Justice crackdown on April 15, 2011, it was estimated that10 million Americans had online poker accounts.

o The U.S. represents the largest percentage of Internet poker players worldwide.

o As worldwide popularity of online poker continues to grow, more countries are seekingto regulate it.

And yet, the U.S. government has no authority under the Unlawful Internet GamblingEnforcement Act (UIGEA) to enforce consumer protections or collect revenue based on thebillions of dollars wagered on online poker websites.

Many U.S. states including, Iowa, Florida, California, Nevada and New Jersey are recognizing thebenefit of regulating and licensing online poker and proposing their own intrastate laws.

To avoid a patchwork of laws that would limit the pool of players and only protect those playerswithin the state, H.R. 2366, the Online Poker Act of 2011, would ensure a fair and safe playingenvironment for all Americans.

Online poker is not going away. Congress has a choice: turn its back on consumer protection and billions in revenue OR pass sensible public policy to license and regulate

online poker.

What’s good for the consumer…

Providing safeguards current policy lacks.

o H.R. 2366 does not repeal UIGEA, but corrects the ineffective prohibition policy withinthe law, while also strengthening its regulatory scope, to ensure player protection. It

m akes the UIGEA clearer and more effective by defining “unlawful Internet gambling”and requires the regulators to publish a list of businesses that U.S. financial institutionsshould not transfer money.

o Requires operators to implement new technologies to effectively protect againstunderage gambling and to monitor and flag players that exhibit signs of problemgambling and direct them to problem gambling services.

8/6/2019 [Talking Points] H.R. 2366: Regulating Internet Poker is Good Public Policy

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o Money laundering risks and tax evasion will be diminished since all electronic fundstransfers would be electronically recorded, providing a detailed, transparent andautomatic transaction trail.

A safe and regulated online poker community for adult consumers.

o Full vetting of internet gaming websites and key employees will ensure the millions of Americans who play poker are playing a fair game run by reputable operators.

o Players will have the opportunity to compete on US-based Internet poker sites. This willexpand the competitive marketplace giving players numerous options for games, skilllevels and competitors.

o Americans will have legal recourse in the unlikely event nefarious activity takes place.

Is good for the economy...

Billions of dollars in additional state and federal revenue without raising taxes.

o It is estimated that $10-$20 billion dollars in state and federal revenue can be raisedover 10 years through licensing and regulation of online poker. Currently this revenue isbeing collected by other countries which regulate internet gaming.

o This is not a new tax on consumers, rather, H.R. 2366 would provide the framework inwhich taxes on poker winnings can be properly reported and collected on both a federaland state level. In large part these taxes are not being collected today.

Establishment of a new – and thriving – industry in the United States.

o A clear regulatory environment will encourage and support U.S. entrepreneurs to enter

the growing online poker market.o A study released in April 2010 revealed that regulated Internet gaming in Europe has

created more than 30,000 new EU jobs.

o Ancillary industries such as payment processors, IT companies and others that supportonline poker will also benefit through increased demand and opportunities.

o Internet poker presents the existing U.S. gaming industry and Indian tribes with newopportunities (which they currently are not engaged) to grow their businesses, increase

jobs, build loyalty among existing customers as well as reach new ones, drivingincreased visitation to their brick and mortar establishments.