New Online Poker Legislation

August 6th, 2009

Senator Robert Menendez, a democrat from New Jersey, will be introducing a new bill late this week. The bill will not only remove the ban from online poker but it will also tax and regulate it. This bill is similar to the bill from Rep. Barney Franks that was introduced earlier this year. However this bill only pertains to online poker. The bill from Rep. Franks included other forms of online betting.

Sen. Menendez will limit his bill to online poker and other skill games. The bill also includes a lot of safeguards once online poker is legal. The safeguards include checking the jurisdiction of the player, and verifying the age of the player. The bill also asks for other safe guards against money laundering and fraud which are two of the main fighting points for opponents of online gambling.

So of course when it becomes legal to bet online the government will want its share of the money that hits the poker tables. The bill is set up to take in 10% of all deposits, then the state government would get 5% and the federal would get the other 5%. While it’s a big hit at least it would be legal to play a hand of online poker.

Banks are big supporters of this bill and of Rep. Frank’s bill. They see no way they will be able to apply the new law that takes effect at the end of the year that bans all forms of online gambling, known as the UIEGA. The UIEGA puts the entire burden on the banks to stop online gambling which is pretty much impossible. So the banks will be watching Sen. Menendez’s bill along with Rep. Frank’s bill and hope this is a bright light at the end of a dark tunnel. So it is not looking to bad for online gambling right now with two strong bills going through Congress, hopefully at least one will make its way out.

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