SuperBook’s Blog

There is a new hope for millions of online gamers in the United States as finally, a respected member of Congress is using his clout and being a voice of reason for the people in this situation. Congressman Barney Frank (D-Massachusetts has launched his proposal to repeal the highly controversial and equally unpopular UIGEA. His step is the first time that a member of Congress has made any attempt to challenge this dubious enemy of all online gamers.

What will happen first? Well for starters, Frank needs our help as uniting many voices will be able to assist him in his bid to wipe away the act. His premise is perhaps the most common one voiced by all of us, and that is why the government would seek jurisdiction over the right of consenting adults to gamble if they so choose. He feels that as an elected official, it is his duty to assist those who are treated unfairly and this blatant attempt to curb online gaming falls directly into that category.

Though this is a great development for those of us in the gaming community, the Congressman has not been specific on what new legislation he will propose.

Political analysts such as Andndrew Parmentier believe that it is very likely that Frank can be successful in his efforts. The reason for this, he says, is because of the sheer numbers and dollars out there to be spent by online gamblers. He estimates that there are about 15 online gamblers in the US alone and the revenue we generate in a year is about $12 billion. That’s pretty significant wouldn’t you say?

Congressman Frank’s camp said that he would make public his plans at a news conference scheduled for Thursday (yesterday). In the news conference, Frank offered a very intelligent alternative to the UIGEA. Instead of a full repeal which would have been extremely difficult, Frank has proposed an alternative, The Internet Gambling Regulation and Enforcement Act. What is it and what does it mean? Well, it’s basically a compromise and compromise is what democracy should be all about. The Act is seeking to regulate licensed gambling operators to accept bets from United States customers. His act is pretty complex by its nature and is looking at a way to impose taxation on the industry, much like that done in other countries such as the UK.

Experts agree that doing away with the entire original wire act would be difficult if not altogether impossible. In his addendum, he leaves room for the ban against financial transactions with online gambling companies stays for illegal or unlicensed companies. To supplement the case, he is proposing a method to license, authorize and regulate offshore gaming companies to operate in the US. Without getting into the technical jargon, he is pretty much adding a new clause to a Monetary Transactions code which is part of US law. An already established government agency would be given the hob of handling the issuance of licenses and regulating the industry without outside interference.

The licenses would not just be handed out to whoever applies. Due diligence would take place as well as background checks to the officers of the companies. In addition, offshore companies would be forced to set up a US corporation in order to be taxed.

The taxation proposal could be quite an appealing and lucrative part of this bill as expected revenues would be around $20 billion per year. There are other many technical aspects in the actual framework of how this would work and we can talk about this in next week’s blog as well as how this bill is being seen in the gaming community.

We need to continue to unite and grow in numbers and make our voices heard. Why? Because we can, that’s why. You can play a part in making your voice heard. On our blog’s main page, click on the banner link that says “Sign a petition to repeal this law to fight the UIGEA. There you can sign up to help repeal the UIGEA. This is your chance. Take it!

Let’s get the dialogue going as alone we are weak but united, we are stronger.