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New Barney Frank Online Gambling Bill Revealed – 04-11-09

May 8, 2009

May 11 – The new proposed bill was published by Barney Frank, chairman of the US Financial Services Committee, the most vocal of all Senators who oppose the original UIGEA (Unlawful Internet Gambling Enforcement Act).

The bill is designed to achieve what many industry observers believe to be the only way forward for online gambling in the US, and that is to issue licenses to operators who are “in good financial and legal standing and of good character, honesty and integrity” and “whose prior activities, reputation, habits and associations do not pose a threat to the public interest or to the effective regulation and control of? the licensed activities,” i.e. operators who haven’t blatantly been involved in illegal online gambling activities.

The bill proposes strict licensing criteria. Operators will have to prove that they have the experience to take and process wagers as well as prior experience in online gambling with adequate financial backing. They should also be able to demonstrate that they have the expertise and technology to combat money laundering and fraud, protect minors and problem gamblers, and ensure that all relevant state laws are protected.

Licenses will be valid for five years and the companies will be subjected to intense background checks as will their directors. Such procedures will be ironed out at as later stage.?

The bills makes provision for penalties if operators do not comply with certain provisions, which include jail terms.

Rep Frank indicated that he plans to present the bill to the House before the August break.

In related news, Frank also announced the introduction of further legislation to delay the implementation of regulations in the UIGEA. Banks and other financial institutions have until December 1 this year to comply with the blocking of financial transactions related to gambling. Franks legislation will push the date back further to 1 December 2010.

The new bill is likely to face stiff opposition from Republicans who were involved in pushing it through the Senate in the first place.

Written by admin · Filed Under Gambling News 

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