Online Casino Edition – Casino News News about online casinos and gambling

June 9, 2011

Aga States Indictments Prove Regulation Needed

Filed under: Casino — Tags: , — OCE News @ 12:00 am

The American Gaming Association has been very supportive that more legal action has been taken against online gambling organizations. But, the president and CEO, Frank J. Fahrenkopf, stated that this form of action is not enough, calling it a “half measure.” The problem has still not been solved. He feels that what is needed is federally sanctioned licensing and proper regulations concerning online poker.

Fahrenkopf stated that “Strong enforcement against illegal operators and unambiguous U.S. laws are vital. Unfortunately, these indictments are only a half measure. The full solution is law enforcement and federally sanctioned state licensing and regulation of online poker for gaming companies that currently abide by U.S. law.”

He added, “Legislation is needed that removes the current ambiguity of UIGEA and provides a strong regulatory framework to preserve states’ rights to determine the online poker options available to their residents.”

The Present Situation

Every year, millions of Americans use foreign websites to bet billions of dollars. As long as they are able to access these sites and place their bets, it seems that they will continue to do so. This clearly spells massive, possible revenues for the US government which is being lost to the countries overseas.

After April 15, coined “Black Friday,” there was, in fact, a rise in business for the 300 organizations that continued to function within the USA. At present, it has been calculated that there are over 1,000 real money sites being controlled by operators conducting their businesses offshore but targeting the USA. As long as there is a demand and Americans are willing to bet on these sites, offshore operators will continue and will simply find new ways in which to get past any barriers put in place to stop them.

Poker Black Friday

Poker Black Friday occurred on April 15 of this year. It has been seen by many as the beginning of the government’s war against online poker. On Friday, an indictment was unsealed by the US Department of Justice against 11 defendants. These defendants included the owners and founders of PokerStars, Full Tilt Piker, and Absolute Poker. Five web domains were also taken over. Five charges were put forward which covered nine counts against all the defendants. It was thought that this action would lead to the breakdown of all sites within the USA, but, as yet, this has not occurred.

A Possible Way Out

Taking Fahrenkopf’s viewpoint, it’s thought that if licensing organizations and enforcement agencies collaborate, it would be possible to do the following:

  • Stop online poker sites being used for illegal reasons, for example, money laundering.
  • Prevent minors from using such sites.
  • Limit or prevent the online poker playing of people who live in states where this form of gambling is illegal.
  • Provide tools so that people are able to control how they gamble more effectively.
  • Make online poker games fairer through proper regulation and controls, for example, by stopping players from using poker bots to cheat.

There still appears to be a long way to in terms of regulating online gaming in the USA.

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