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Poker Legislation & PPA Discussion hosted by Rich Muny Discussions of various poker-related laws and steps players can take to push for better laws.

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Old 09-03-2009, 12:01 AM   #1
Rich Muny
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Post U.S. Online Poker & Gaming Legislation History

I thought I'd try to put together a timeline of attempted legislation affecting online poker. Please PM with updates and changes:

1961: Wire Actpassed into law. From the act: "Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both." DoJ claims this act bans all interstate wagering via wire communication. U.S. Fifth Circuit Court of Appeals disagrees in 2001 [In re MasterCard Int'l, et al., 132 F. Supp. 2d 468, 472 (E.D. La. 2001)], limiting it to sports betting. DoJ does not accept the ruling.

1986: William E. Baxter Jr. v. United States. This was a federal tax case regarding the U.S. federal income tax treatment of the gambling income of a professional gambler. As a result of this case, gambling winnings in the United States can in certain cases be treated as earned income for federal income tax purposes. This means that in some cases expenses and losses can be deducted from gambling winnings in arriving at the net earnings from self-employment, and that winnings can be placed into retirement funds.

1995: S 1495 - failed (no vote, 2 cosponsors). Sen. Jon Kyl (R-AZ) sponsored the Crime Prevention Act of 1995. The bill included an amendment to the Wire Act to include non-sports betting.

1996: HR 497 - passed into law (143 cosponsors, passed House and Senate by voice votes). The National Gambling Impact Study Commission Act includes a the study of Internet gambling. James Dobson of Focus on the Family selected to serve on commission.

1997: S 972 – failed (no vote, 3 cosponsors). This bill sought to eliminate the federal tax deduction for gambling losses. [Not an online poker issue, but of interest]

1997: S 474 - passed Senate (13 cosponsors; Senate voted 90-10 to add to appropriations bill; no House vote). Another Jon Kyl bill to ban online gaming. Applies to games of chance and sports betting. Called for ISPs to block access to gaming sites. Includes a player penalty (fine and jail time).

1997: HR 2380 - failed (49 cosponsors). Rep. Goodlatte's (R-VA) first bill to ban online gaming. Includes predominance test. Called for ISPs to block access to gaming sites. Includes a player penalty (fine and jail time).

1998: H.AMDT.858 - failed (withdrawn, no cosponsors). This bill sought to amend an unrelated appropriations bill with an Internet gaming ban.

1998: HR 4427 - failed (3 cosponsors). This bill sought to ban Internet gaming. Includes predominance test. Called for ISPs to block access to gaming sites. No player penalty.

1998: HR 4350 - failed (5 cosponsors). This bill sought to ban Internet gaming. Applies to games of chance and sports betting. Called for ISPs to block access to gaming sites. Includes a player penalty (fine and jail time).

1999: S 692 - passed Senate (23 cosponsors; passed by unanimous consent; no House vote). Another Jon Kyl bill to ban online gaming. Applies to games of chance and sports betting. Called for ISPs to block access to gaming sites. No player penalty.

1999: HR 3125 - failed (34 cosponsors; full House vote: 245-159 for, short of 2/3 required under special rules). Another Goodlatte bill. Includes predominance test. Called for ISPs to block access to gaming sites. No player penalty.

2000: GOP Party Platform Anti-Online Gaming Plank. Anti-online gaming plank included in party platform: "We support legislation prohibiting gambling on the Internet."

2000: HR 5020 - failed (1 cosponsor). This bill sought to ban Internet gaming. Applies to "any contest or game based in whole or in part on chance, including a lottery." No player penalty.

2000: HR 4419 - failed (4 cosponsors). Rep. Jim Leach's (R-IA) first bill to ban online gaming. Sought to prohibit online gaming. Enforcement via blocking use of financial instruments for "unlawful Internet gaming." Includes predominance test. No player penalty.

2001: U.S. Fifth Circuit Court of Appeals [In re MasterCard Int'l, et al., 132 F. Supp. 2d 468, 472 (E.D. La. 2001)] rules that Wire Act is limited to sports betting. DoJ does not accept the ruling.

2001: U.S. Second Circuit Court of Appeals [United States v. Cohen] rules that the Wire Act includes Internet and other means of interstate communication. Jay Cohen continues to advocate for online rights here and across the Web.

2001: HR 2579 - combined with HR 556 (0 cosponsors). Sought to prohibit online gaming. Enforcement via blocking use of financial instruments for "unlawful Internet gambling." Includes predominance test. No player penalty.

2001: HR 556 - passed House (7 cosponsors; passed House via voice vote; no Senate vote). Another Leach bill to ban online gaming. Enforcement via blocking use of financial instruments for "unlawful Internet gambling." Includes predominance test. No player penalty.

2002: S 3006 - failed (0 cosponsors). This bill sought to ban Internet gaming. Applies to "any contest or game based in whole or in part on chance, including a lottery." No player penalty.

2002: HR 5760 - failed (0 cosponsors). This bill, sponsored by Rep. John Conyers (D-MI) sought to study Internet gaming.

2003: S 627 - failed (2 cosponsors). Another Kyl bill to ban online gaming. Enforcement via blocking use of financial instruments for "unlawful Internet gambling." Includes predominance test. No player penalty.

2003: HR 2143 - passed House (2 cosponsors; passed 319-104; no Senate vote). A Spencer Bachus (R-AL) bill to prohibit financial transaction on "unlawful Internet gambling." It did not contain its own prohibitions on gaming, instead relying on other federal and state laws. No predominance test. No player penalty. Very similar to UIGEA.

2003: HR 1223 - failed (3 cosponsors). Another John Conyers' (D-MI) bill to study Internet gaming.

2003: HR 21 - failed (35 cosponsors). A Leach bill to prohibit financial transaction on "unlawful Internet gambling." It did not contain its own prohibitions on gaming, instead relying on other federal and state laws. No predominance test. No player penalty. Very similar to UIGEA.

2004: GOP Party Platform Anti-Online Gaming Plank. Anti-online gaming plank included in party platform (p. 57): "We support legislation prohibiting gambling on the Internet."

2006: HR 4777 - failed (135 cosponsors). A Goodlatte bill to ban online gaming. Enforcement via blocking use of financial instruments for "unlawful Internet gambling." Includes predominance test. No player penalty.

2006: HR 4411 - passed into law (35 cosponsors; passed the House in freestanding form 317-93; passed the Senate 98-0 as part of the SAFE Ports Act; the House passed the Safe Ports Act 421-2). This Leach bill prohibits financial transaction on "unlawful Internet gambling." It does not contain its own prohibitions on gaming, instead relying on other federal and state laws. No predominance test. No player penalty. Modified into UIGEA in Senate after passing House.

Since UIGEA (bill summaries courtesy of PokerXanadu):

2007: H.R.2046 Died in committee. Sponsor: Rep Frank, Barney [MA-4] (introduced 4/26/2007) Cosponsors (48) To provide for the licensing of Internet gambling facilities. Included a state opt out.

2007: H.R.2140 Died in committee. Sponsor: Rep Berkley, Shelley [NV-1] (introduced 5/3/2007) Cosponsors (73) To provide for a study by the National Academy of Sciences to identify the proper response of the United States to the growth of Internet gambling.

2007: H.R.2607 Died in committee. Sponsor: Rep McDermott, Jim [WA-7] (introduced 6/7/2007) Cosponsors (1) To tax Internet gambling sites under H.R. 2046 at the rate of 2% on deposits.

2007: H.R.2610 Died in committee. Sponsor: Rep Wexler, Robert [FL-19] (introduced 6/7/2007) Cosponsors (22) To amend United States Code such that "bets or wagers" does not include games of skill, including poker. Added regulations for games of skill, but no licensing.

2007: Neteller Seizure. The U.S. Attorney's Office seized funds of ewallet Neteller. The funds remained in legal limbo for several months before finally being returned to players.

2008: GOP Party Platform Anti-Online Gaming Plank. Many poker players submitted comments to the GOP Party Platform site asking for removal of the anti-online gaming plank that was in the 2000 & 2004 party platforms. The draft committee did not include this plank in the initial 2008 platform. The full committee later restored it: "Millions of Americans suffer from problem or pathological gambling that can destroy families. We support the law prohibiting gambling over the Internet."

2008: H.R.5523 Died in committee. Sponsor: Rep McDermott, Jim [WA-7] (introduced 3/4/2008) Cosponsors (None) To tax Internet gambling sites under H.R. 2046 at the rate of 2% on deposits. Imposed the excise tax on wagers on any individual who places a wager with an unlicensed Internet gambling operator.

2008: H.R.6870 Died. Sponsor: Rep Frank, Barney [MA-4] (introduced 9/11/2008) Cosponsors (1) to ensure that the UIGEA would not be implemented, except in regards to online sports betting, until the term "unlawful Internet gambling" was defined.

2008: S.3616 Died in committee. Sponsor: Sen Menendez, Robert [NJ] (introduced 9/26/2008) Cosponsors (None) to provide for the licensing of Internet skill game facilities. Included state opt outs.

2009: H.R.2266 Died in Committee. Sponsor: Rep Frank, Barney [MA-4] (introduced 5/6/2009) Cosponsors (49) To delay for 1 year the date for compliance with the UIGEA.

2009: H.R.2267 Died on House Calendar. Passed by House Financial Services Committee 41-22 on 7/29/10. Sponsor: Rep Frank, Barney [MA-4] (introduced 5/6/2009) Cosponsors (70) To provide for the licensing of Internet gambling activities. Includes a state opt out.

2009: H.R.2268 Died in Committee. Sponsor: Rep McDermott, Jim [WA-7] (introduced 5/6/2009) Cosponsors (4) To tax Internet gambling sites under H.R. 2267 at the rate of 2% on deposits. Includes a player penalty (50% penalty on deposits at unlicensed sites).

2009: S.1597. Died in Committee. Sponsor: Sen Menendez, Robert [NJ] (introduced 8/6/2009) Cosponsors (None) to provide for the licensing of Internet poker and other games that are predominantly of skill. Includes a 10% tax on deposits and a state opt-out. Includes a player penalty (50% penalty on deposits at unlicensed sites).

2009: SDNY Fund Seizure - U.S. Attorney for the Southern District of New York ordered five banks to freeze a total of $30 million in payments owed to poker players from companies that process payments. The PPA filed an amicus brief in the civil case. However, the civil case was dismissed and combined with the criminal case against Account Services owner Douglas Rennick. Rennick pled guilty in May 2010 to one count of using the wires to transmit bets and wagering information in interstate commerce and forfeited $17.1M. He was sentenced in September 2010 to six months of probation.

2009: U.S. Third Circuit Court of Appeals [Interactive Media Entertainment and Gaming Assoc., Inc. vs Atty. Gen. of the United States; Federal Trade Commissions; Federal Reserve System] upholds UIGEA. iMEGA to appeal to Supreme Court.

2011: HR 1174 Died in committee. Rep Campbell, John [CA-48] (introduced 3/17/2011) Cosponsors (28) Internet Gambling Regulation, Consumer Protection, and Enforcement Act. To amend title 31, United States Code, to provide for the licensing of Internet gambling activities by the Secretary of the Treasury, to provide for consumer protections on the Internet, to enforce the tax code, and for other purposes.

April 7, 2011: The deadline passes for the US government to object to the budget for DC that was approved by the city council in 2010. This budget includes offering Internet poker by the DC lottery, operated by service provider Intralot. The District of Columbia becomes the first to legalize Internet poker in the US. Implementation is expected to start in mid-summer/early fall of 2011.

April 15, 2011: Black Friday. SDNY releases criminal indictments, domain seizures, funds seizure orders for PokerStars, Full Tilt Poker and AP/UB. These sites closed real money play to US players, and subsequently both Full Tilt and AP/UB closed their worldwide operations. PokerStars refunded all US players two weeks later and on July 31, 2012 settled their criminal case, including the purchase of all Full Tilt Poker company assets and repayment of FTP non-US players (more below). Under the settlement, FTP US players will be able to apply for remission to the DOJ for return of their FTP account balances. AP/UB has not refunded players.

2011: Nevada AB258 Signed into law by Governor Sandoval 6/10/2011. Authorizes the Nevada Gaming Commission to develop the regulations necessary to license and regulate Nevada casinos for online poker. Allows anyone located in NV to play, as well as interstate play if federal law or the DOJ authorizes it.

2011: H.R.2230 Died in committee. Sponsor: Rep McDermott, Jim [WA-7] (introduced 6/16/2011) Cosponsors (2) To amend the Internal Revenue Code of 1986 to regulate and tax Internet gambling. To tax Internet gambling sites under H.R. 1174 at the rate of 2% on site deposits for the federal govt and 6% on site deposits for the states and tribes. Includes an unlicensed-site penalty (50% penalty on deposits at unlicensed sites) for which players can be liable.

June 24, 2011: H.R. 2366 Died in committee. Sponsor: Rep. Joe Barton [R-TX] (introduced 6/24/2011) Cosponsors (30) Internet Gambling Prohibition, Poker Consumer Protection, and Strengthening UIGEA Act of 2011. To establish a program for State licensing of Internet poker, and for other purposes.

July 14, 2011: Sen. Reid and Sen. Kyl submit a joint letter to Attorney General Eric Holder requesting clarification of the DOJ stance on the legality of Internet gambling under federal law.

December 23, 2011: Nevada issues Regulation 5a for the Operation of Interactive Gaming.

December 24, 2011: The DOJ releases its opinion letter that the Wire Act applies only to sporting events and contests, and its response to the Reid-Kyl letter requesting clarification of the DOJ stance on the legality of Internet gambling under federal law.

February 7, 2012: The D.C. City Council repeals its law to legalize Internet poker.

March 19, 2012: Utah H.B. 108 Signed into law. Criminalizes both playing and offering Internet gambling, including Internet poker, in Utah as of July 1, 2012. Makes playing Internet poker a Class B misdemeanor for the first conviction and a Class A misdemeanor for subsequent convictions. Also requires the state of Utah to opt out of any federal law that may be passed which authorizes Internet gambling, including Internet poker.

June 28, 2012: Delaware H.B. 333 Signed into law. Authorizes internet gaming (including poker) under the control and operation of the Delaware Lottery.

July 31, 2012: DOJ/FTP/PokerStars Settlement: The United States Attorney’s Office for the Southern District of New York announces a court-approved settlement with Full Tilt Poker and PokerStars. The $731M settlement, which settles all criminal complaints against the FTP and Pokerstars business entities (but not named individuals) from the Black Friday indictments, transfers all assets and some of the liabilities of Full Tilt Poker to the ownership of Pokerstars. The settlement includes $547M in forfeiture payments over three years from PokerStars to the DOJ, plus $184M set aside by PokerStars to be made available for withdrawal within 90 days to all non-U.S. FTP players to cover their account balances. The first immediate forfeiture payment of $225M will be used to fund a petition and remission process by the DOJ "for U.S. victims of the alleged fraud that Full Tilt Poker committed relating to player funds" for an estimated $150M. PokerStars re-opened Full Tilt Poker to non-US players on November 6, 2012, making full account balances available for withdrawal or play to non-US players.

August 21, 2012: U.S. vs. DiCristina Case Ruling: Judge Jack B. Weinstein, a Senior United States District Judge for the Eastern District of New York (a federal district court), in a 120-page appeals court decision, rules that poker is a game predominated by skill and is not gambling as defined by the federal Illegal Gambling Business Act (IGBA).

February 21, 2013: Nevada AB114 Signed into law by Governor Sandoval. Removes the requirement that the Nevada Gaming Commission must wait for a change in federal law or DOJ approval before allowing interstate play on the NV licensed online poker sites. Authorizes the Governor to negotiate agreements with other states for online poker. Adds a 5-year blackout for licensing any person or entity who participated in online gambling for US players after December 31, 2006, or for any site to utilize any of the resources (software, player base, etc.) of such bad actors.

February 26, 2013: New Jersey AB2578 Signed into law by Governor Christie. Authorizes the casinos in Atlantic City to operate online gambling under the regulation of the New Jersey Division of Gaming Enforcement. Allows anyone in NJ to play, as well as interstate and international play under reciprocal agreements with NJ and as allowed by federal law and the laws of the other jurisdictions.

April 10, 2013: Florida HB3 Signed into law by Governor Scott. Outlaws Internet sweepstakes cafes by changing the statutory definition of a slot machine in Florida law. Although not intended for enforcement against online gambling or online poker, it does technically make any electronic device (computer, phone, pda, etc.) into an illegal slot machine when used for real-money play or even free-play when prizes or points of some value are involved. It may never be enforced against online poker sites or players, but ClubWPT (a U.S. online poker subscription site which operates under sweepstakes laws) did close to Florida players two days later. Note: ClubWPT re-opened to Florida players October 1, 2014, but with eligibility limited to one particular sweepstake with a specified ending date (Nov. 30), to comply with Florida sweepstakes laws.

April 30, 2013: Ultimate Poker, operated by StationCasinos (as Fertitta Interactive), opens to real-money players as the first operational, real-money, online poker site that is licensed and regulated within the United States. Play is restricted to players within the borders of Nevada, but players elsewhere may register and deposit. This site uses proprietary software developed by their wholly-owned subsidiary CyberArts.

2013: HR 2282 Died in committee. Rep King, Peter T. [R-NY-2] (introduced 6/6/2013) Cosponsors (1) Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013. To regulate Internet gambling, to provide consumer protections, and for other purposes.

2013: HR 2666 Died in committee. Rep Barton, Joe [R-TX-6] (introduced 7/11/2013) Cosponsors (0) Internet Poker Freedom Act of 2013. To establish a program for the licensing of Internet poker by States and federally recognized Indian tribes, and for other purposes.

September 16, 2013: The process for remission of Full Tilt Poker player funds to US players by the DOJ, under the administration of Garden City Group, begins, with a two-month window for anyone entitled to claim remission (any player owed a player balance by FTP) to file a petition online with GCG at fulltiltpokerclaims.com .

October 31, 2013: The soft-launch date for the three Delaware casinos to offer real-money Internet gaming, including poker. The sites operate on the state-lottery-run platform provided by a joint venture of Scientific Games and 888 Holdings. Poker games are on the 888.com poker platform.

October 31, 2013: The Governor of the U.S. Virgin Islands and the Commissioner of their Casino Control Commission announce their intent to establish Internet gambling in the Virgin Islands under a legal opinion issued by the Virgin Islands Attorney General on October 18, 2013, that Internet gambling is already legal in the Virgin Islands under the 2001 Virgin Islands Internet Gaming and Gambling Act.

November 26, 2013: Following a 5-day "soft launch" testing period, the New Jersey Department of Gaming Enforcement gives the go-ahead to five Atlantic City casinos (Borgata, Caesars, Tropicana, Trump Plaza, Trump Taj Mahal) for full Internet gaming operations. This includes six NJ sites for online poker: theborgata.com (partypoker); nj.partypoker.com (partypoker); wsop.com (888poker); 888poker.com (888poker); letsplaynj.com (betfair-ongame); ucasino.com (ultimatpoker) . One additional casino, Golden Nugget, continues their soft launch and is expected to go live within a week: goldennuggetpoker.com (ongame).

March 26, 2014: H.R. 4301 and S.2159, the Restoration of America's Wire Act (RAWA). Both died in committee, but expected to be reintroduced in next Congressional session. Sponsor in House: Rep Chaffetz, Jason [R-UT] Cosponsors (18); Sponsor in Senate: Sen Graham, Lindsey [R-SC] Cosponsors (4). To restore long-standing United States policy that the Wire Act prohibits all forms of Internet gambling, and for other purposes. This bill is a part of Las Vegas Sands Corp. owner and billionaire Sheldon Adelson's concerted effort to ban all Internet gambling in the U.S. While Adelson claims that he is opposed to Internet gambling for moral reasons (to protect children and the vulnerable), his casino empire will greatly benefit by this stifling of competition. He has vowed to spend whatever it takes to get this ban enacted, and has spent millions on for-hire lobbyists, spokespersons and political campaigns to bring it about.

February 4, 2015: H.R. 707, the Restoration of America's Wire Act (RAWA). Introduced and referred to committee. Sponsor in House: Rep Chaffetz, Jason [R-UT] Cosponsors (13). Same bill as last Congressional session (H.R.4301 above): To restore long-standing United States policy that the Wire Act prohibits all forms of Internet gambling, and for other purposes.

March 24, 2015: Shared player pools between licensed online poker sites in Delaware and Nevada go live in soft launch. This is the first interstate player pooling in U.S. state-regulated online poker. The pooled sites are all on the 888.com platform, including the three Delaware licensed sites (operated by the horse tracks: Dover Downs, Harrington Raceway, Delaware Park) and WSOP.com in Nevada. Another Nevada site is expected to go live soon as part of the same pooling, the All American Poker Network operated by 888.com, licensed in Nevada in partnership with Treasure Island casino.

June 24, 2015: S. 1668, the Restoration of America's Wire Act (RAWA). Introduced and referred to committee. Sponsor in Senate: Senator Graham, Lindsey [R-SC] Cosponsors (6). Same bill as last Congressional session (S.2159 above): To restore long-standing United States policy that the Wire Act prohibits all forms of Internet gambling, and for other purposes.

June 25, 2015: HR 2888 Introduced and referred to committee. Rep Barton, Joe [R-TX-6] Cosponsors (2) Internet Poker Freedom Act of 2015. To establish a program for the licensing of Internet poker by States and federally recognized Indian tribes, and for other purposes.

------------------------------------------------------------


Provisions in the U.S. Code related to gaming (section courtesy of PokerXanadu):

TITLE 15--COMMERCE AND TRADE, CHAPTER 24--TRANSPORTATION OF GAMBLING DEVICE
[GPO text link] [GPO pdf link] [Cornell library link]

TITLE 18--CRIMES AND CRIMINAL PROCEDURE, PART I--CRIMES, CHAPTER 50--GAMBLING (The Wire Act)
[GPO text link] [GPO pdf link] [Cornell library link]

TITLE 18--CRIMES AND CRIMINAL PROCEDURE, PART I--CRIMES, CHAPTER 53--INDIANS, Sec. 1166. Gambling in Indian country
[GPO text link] [GPO pdf link] [Cornell library link]

TITLE 18--CRIMES AND CRIMINAL PROCEDURE, PART I--CRIMES, CHAPTER 95--RACKETEERING, Sec. 1952. Interstate and foreign travel or transportation in aid of racketeering enterprises (The Travel Act)
[GPO text link] [GPO pdf link] [Cornell library link]

TITLE 18--CRIMES AND CRIMINAL PROCEDURE, PART I--CRIMES, CHAPTER 95--RACKETEERING, Sec. 1955. Prohibition of illegal gambling businesses (IGBA)
[GPO text link] [GPO pdf link] [Cornell library link]

TITLE 25--INDIANS, CHAPTER 29--INDIAN GAMING REGULATION (IGRA)
[GPO text link] [GPO pdf link] [Cornell library link]

TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE, PART VI--PARTICULAR PROCEEDINGS, CHAPTER 178--PROFESSIONAL AND AMATEUR SPORTS PROTECTION (PASPA)
[GPO text link] [GPO pdf link] [Cornell library link]

TITLE 31--MONEY AND FINANCE, SUBTITLE IV--MONEY, CHAPTER 53--MONETARY TRANSACTIONS, SUBCHAPTER IV--PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING (UIGEA)
[GPO text link] [GPO pdf link] [Cornell library link]

TITLE 49--TRANSPORTATION, SUBTITLE VII--AVIATION PROGRAMS, PART A--AIR COMMERCE AND SAFETY, subpart ii--economic regulation, CHAPTER 413--FOREIGN AIR TRANSPORTATION, Sec. 41311. Gambling restrictions
[GPO text link] [GPO pdf link] [Cornell library link]

Last edited by PokerXanadu; 07-08-2015 at 06:41 AM. Reason: Add RAWA.
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