Harry Reid trying to get online poker legal

[Dan Abnormal]

FOUND THIS ON YAHOO, the way they word stuff I cant tell if this is good or bad. Are they trying to get US legalized sites only or legalized on any site

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WASHINGTON – Senate Majority Leader Harry Reid is pushing behind the scenes for lame-duck legislation that would allow poker games over the Internet but restrict initial licenses to casinos and racetrack operators that have been in businesses at least five years.
Some of the biggest casino operators in Reid's home state of Nevada are eager to get a piece of the gambling industry, which generates an estimated $5 billion a year for offshore operators.
A congressional aide familiar with the issue said Reid aides were circulating the draft legislation, and a copy of it was obtained by The Associated Press. The aide was not authorized to speak publicly about the matter and did so only on condition of anonymity.
Four years ago, Congress effectively banned online gambling, passing legislation that prohibits banks and credit card companies from making payments to gambling websites. Supporters of online poker face less opposition with Democrats in charge of both chambers for another month. The House Financial Services Committee this year approved a bill that established a regulatory structure for online gambling.
Reid's office would not answer questions about the legislation.
But sensing that supporters are in a hurry to lift the ban, three leading Republicans in the House wrote to Reid and Senate Minority Leader Mitch McConnell, R-Ky., this week to say they oppose any attempt to legalizeinternet gamblingduring the current legislative session.
They said using online gaming to generate revenue for the federal government would bring social and economic harm to many families.
"Congress should not take advantage of the young, the weak and the vulnerable in the name of new revenues to cover more government spending," Republican Reps. Spencer Bachus of Alabama, Dave Camp of Michigan and Lamar Smith of Texas said in the letter. Bachus is in line to become chairman of the Financial Services Committee next month, Camp will take over the Ways and Means Committee and Smith is expected to head the Judiciary Committee. The three committees have jurisdiction over Internet gambling matters.
Most of the legislative work this year concerning online gambling has taken place in the House, where supporters say that prohibition didn't work with alcohol and it's not working with online gambling. People continue to participate but in an underground, unregulated market.
"We are not talking about an activity that harms others where we properly step in," Rep. Barney Frank, D-Mass., the current Financial Services chairman, said at a hearing this year. "We are talking about a decision by adults to do what they want with their own money."
Under the draft legislation circulated to various Senate offices, states and Indian tribes would oversee regulation of the online poker license-holders.
Casino companies were among Reid's biggest campaign donors in the last election. MGM Resorts International, through its employees and political action committee, donated $192,000 to his campaign, the most of any single company, according to the Center for Responsive Politics. Meanwhile, employees and the PAC at Harrah's Entertainment chipped in an additional $83,100. Harrah's recently changed its name to Caesars Entertainment Corp.
Poker's popularity has soared in recent years, with casinos around the country regularly sponsoring poker tournaments, some of which are shown on television. The winner of this year's World Series of Poker in Las Vegas won nearly $9 million. The tournament featured more than 7,300 players willing to pay a $10,000 entry fee.
With online poker, players generally deposit money into an account through their credit card. They join a table with other players following along on their computer. A software program deals cards to each participant. And when it's time to bet, the program automatically prompts a player to bet, hold or fold. The program also keeps a running tab of how many chips a player accumulates or lose. When players have finished their game, they click on a cashier tab that shows how much a player's account has increased or decreased.

[scrawnybob]

hi

yes unfortunately as I predicted this is a carve out for a US closed shop for the existing landbased casinos

I think with a 2 year head start so other non US "offshore" poker rooms couldnt get legal position in US for another 2 years

I predicted as much in my blog last year ...

US Poker Regulation – Will US respect the global market or create a protectionist closed shop

unfortunately it seems that the US govt is determined to portray the rest of the civilised world and admittedly some of the less civilised world as being some kind of hemoginous Godless, lawless pirating bed of unregulated danger

which is basically bolox but it suits them and the landbased casinos to imply that somehow they are the only people that could be trusted with your bucks

lets ignore that for the most part pre UIGEA most sites and most players were actually safe and much better served until they f*cked things up

the UIGEA has infact made things less reliable, more unsafe and generally made something that works fine into a mess

the sooner the US govt realises they are not and dont have the right to dictate international trade or ride roughshod over WTO rules the better - but I dont see that happening anytime soon

my other prediction from last year may well come true as a result of this daft (but possibly better than current situation)

ie. pokerstars etc will buy a slice of vegas and then the US will have to let them in etc

Will PokerStars Buy Las Vegas ?

afaiks vegas real estate at the moment is on an alltime low, there are bound to be alot of valid gaming licence opportunities for the online sites to buy an onshore US presence even if it means they for are while they have a site and a casino or differing names - pretty sure they will all look into this ... watch out for partypoker, pokerstars, PKR, 888gaming & fulltilt going down this road in the next 18mnths I think

cheers scrawnybob

[Terminal Frost]

Pokerstars and FTP buying vegas would be the best solution IMO.

It all makes my head spin however. The Republicans love to say they are for small government and keeping the government out of our lives, yet when it comes to online poker the majority of them want to tell us what we can and cannot do. They are the ones that pushed thru the UIGEA in the middle of the night. COWARDS.

The land of the free and the home of the brave? Not anymore.

[Daniel72]

That means 15 months without online poker on big sites and then only US people play each other like the french players already do ?!

[Terminal Frost]

This has to be the biggest, most blatant, money and power grab in the history of this country.

"The biggest issue that players have with Senator Reid’s bill is the proposed 15-month blackout followed by another two-year restricted period, wherein only established casinos who have manufactured and operated 500 or more gaming devices (slot machines, video poker etc.) for five or more years would be able to operate online poker sites."

THINK ABOUT IT!!!!! If Congress decided to take back any other industry dominated by other countries by PREVENTING AMERICANS FROM PURCHASING OR USING THAT PRODUCT FOR 15 MONTHS then only allowing certain companies to offer that product for ANOTHER 2 YEARS, everyone would be outraged.

If there was any doubt that the casinos and their money trump free trade, free markets and capitalism, this absolutely ridiculous caveat has put that to rest.

Unfortunately, this may be the only way to get any bill passed. How very, very sad.

[Poker Orifice]

HUGE pain in the short term... 'but'.. possibly HUGE Gain in the longrun.

As far as I know (from what I've heard), online poker (as we know it) won't be able to survive for much longer than 2-3yrs. anyways (not with the present way it exists).

Also (from what I've been hearing) it will be a huge plus once it's legal & all the new fish will be playing online (talk of it bein' even juicier than the 'old days' of PartyPoker post Moneymaker days).

Whether or not they ever actually give licenses to Fulltilt & PokerStars will have to be seen (apparently there's the possiblity of it, 2yrs. after the 'blackout'). Who's to say they even bother with Fulltilt & PokerStars by then?

Something I've been wondering about. What does this mean for other parts of the world? Will we not have the oppurtunity to play vs. the 'new' fish of 2012 (or 2014.. depending upon if Fulltilt & others are given licenses to operate in the US by then). Also, for 'the rest of us', I can only imagine how small the field of players will be in the Tournaments with all US players not playing? (I'm guessing/assuming that 'some' will still be playing... whether it's by moving or going thru some sort of internet server that enables them to do so (ie. like the online pros from Washington who I happen to notice are still playing on Fulltilt these days in the MTTs). Will this be the end of playing vs. US players for the rest of the world for 3+yrs. now??? (cuz that really sucks!).

Have also been thinking about > What about all of the businesses that are offshoots from the online poker world? (forums, training sites, coaching, sponsorship, sattys supporting LARGE live tournaments, etc.). Sounds like ALOT of people will be out of work soon.

Here's another thing I was wondering about. One knows how fast the game evolves (ie. what was considered the norm in MTT play just 2yrs. ago is now wayyyy outdated... ie. poker vids. put out by online pros from 2yrs. ago, are now super outdated compared with the newer ones). How will this affect the world of poker as we know it? (both live & online). Will the game develop differently in different parts of the world (more so than it does already.. ie. in today's MTT game.. in higher buyins.. player from SPAIN 4bets pre... he's likely got a MONSTER < small example... one of many... but just putting it here for a rough idea). For those players continue to play online over the next 15mos., how will the game develop differently from those who haven't been able to play online at all? Also, once the US does get playing again online, will the game in the US evolve differently from the rest of the world? (they won't be playing on the same tables at all... at least online anyways). I'm not suggesting there will be HUGE differences or anything.. but am guessing there will be at least some subtle ones. Hmmm.... ????

[Ravensfan929]

It might work out better if things dont change as the blackout is stupid and also u wont be allowed on FTP or PS or other sites like that for 39 months i believe it was.

[Peteyweestro]

I do say i am a Republican, but in this online gaming thing i am completely against their stand on things. If someone is over 18 and able to afford to play then damnit they should be allowed to make that choice, we are supposed to be in a Democracy not in some Dictator or Communist regime where the Fed Gov has to tell us when to sleep,eat and piss ! It's a very sad time in my glorious countries history if you ask me

[Terminal Frost]

HUGE pain in the short term... 'but'.. possibly HUGE Gain in the longrun.

Maybe. And IMO it's more than a pain. It should be unconstitutional to hand such a windfall to a few existing companies, prevent people from doing what is lawful, and not allowing new or other existing companies to compete. What are we, Russia?

As far as I know (from what I've heard), online poker (as we know it) won't be able to survive for much longer than 2-3yrs. anyways (not with the present way it exists).

Probably true. The REAL solution was to kill the UIGEA!!! But that would be too simple.

Whether or not they ever actually give licenses to Fulltilt & PokerStars will have to be seen (apparently there's the possiblity of it, 2yrs. after the 'blackout').

Who's to say PS or FTP will want to bother with us. The government is proposing to take 20% of their profits as a fee! Not to mention the reporting requirements of players wins and losses. Or that the group that grants licenses would license them (any guesses as to who will probably dominate the licensee group?)

Will this be the end of playing vs. US players for the rest of the world for 3+yrs. now??? (cuz that really sucks!).

I was wondering that too. Even after the stupid blackout, would we have to play only US players? (cuz that would really suck).

Have also been thinking about > What about all of the businesses that are offshoots from the online poker world? (forums, training sites, coaching, sponsorship, sattys supporting LARGE live tournaments, etc.). Sounds like ALOT of people will be out of work soon.

So true, and when we are trying to create jobs. Without all the US players in the satellites to the WSOP, seems like that field will be way down also.

It also seems like the cost of playing for us will go way up. Less competition means higher rake, bigger fees, fewer promos, etc. For at least 2 years, they have a license to rape us. And since the player pool will be so much smaller, I'm sure the choice of games will be less.

Bottom line-the whole approach the US has taken towards online poker just totally sucks. Hypocrisy rules!

[Terminal Frost]

I do say i am a Republican, but in this online gaming thing i am completely against their stand on things. If someone is over 18 and able to afford to play then damnit they should be allowed to make that choice, we are supposed to be in a Democracy not in some Dictator or Communist regime where the Fed Gov has to tell us when to sleep,eat and piss ! It's a very sad time in my glorious countries history if you ask me

Ya, this is GIMME A BREAK STUFF: Opponents of the bill include ranking Republican member of the House Financial Services Committee Spencer Bachus (R-AL) who is adamantly opposed to any form of gambling. Bachus and a small group of Congressional members sent a letter to Reid opposing any online gaming legislation being brought up during the lame-duck session: “Congress should not take advantage of the young, the weak and the vulnerable in the name of new revenues to cover more government spending,” Bachus wrote in the letter.

I'm an indepedent and think that Ron Paul is the only credible, reasonable voice among that den of thieves. Too bad he wasn't nominated and elected.