House Financial Services Committee votes YES on HR 2267

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The poker world breathed a huge sigh of relief yesterday as the House Financial Services Committee voted to approve HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, by a margin of 41 to 22.

While not yet a guarantee that online poker will become freely available to American players it is the next step towards a goal that has eluded millions of poker enthusiasts since the Unlawful Internet Gambling Enforcement Act (UIGEA) crept into law in 2006.

The bill faced 13 amendments during the course of the hearing, including one from Congressman Brad Sherman of California that would prohibit existing online poker operators that defied the UIGEA to operate in the United States, from obtaining licenses in the future.

However, a statement released shortly after the committee meeting by the Poker Players Alliance, the leading advocate for the legal battle in the United States, sought to allay the fears of players that operators such as PokerStars, Full Tilt and Ultimate Bet might be barred.

“To be clear, despite the concerns of some of our members, nothing in the Committee-passed legislation precludes lawful Internet poker-only operators whom U.S. players know and trust today from the opportunity to operate under a regulated system,” read the PPA statement. “The PPA will work with House and Senate lawmakers to ensure that the final legislation produces the best regulated online gaming environment for the consumer.”

For those needing a refresher course in the American legal process the markup stage of a bill involved the Committee proposing changes before it is voted on. If passed it is then sent to the US House of Representatives for another vote where it requires another majority vote. The next stop is the US Senate for one more majority vote. Pass that stage and the bill makes its way to the President’s desk to be signed into law. All must be done before the end of the year.

Some amendments were passed, including one made by Congressman Peter King of New York that prohibited sports betting, although excluded horse racing. Emphasis on protecting minors and problem gamblers was also reinforced as was the proposal that only debit cards could be used to fund accounts, not credit cards.

Those following the hearing got a taste of the political nitty-gritty involved. One amendment, proposed jointly by Congressman Spencer Bachus and Congresswoman Michele Bachmann, sought to forbid offshore poker operators and their employees from getting a license, as well as everyone associated with an “illegally run” site.

Rep. Barney Frank disputed the provision, suggesting it was unfair to punish the janitor or restaurant worker of a bricks and mortar casino for the decisions of upper management. Bachus withdrew the amendment, resubmitting it later, stipulating that only those who knew they were working for an illegally run internet site would be banned from obtaining a licence. The amendment was voted down.

Next stop, the US House of Representatives.

To read the full list of amendments go to Poker News Daily, while the full statement released by the Poker Player’s Alliance can be read here.