Tue, 02/15/2011 – 00:27 – PokerPages Staff

A Republican Congressman from California, Darrell Issa, invited business leaders recently to help him work out exactly what taxpayers and entrepreneurs need to secure the right to succeed and grow in the USA.  He may not have expected such forthright advice, but Michael Waxman – Executive Director and founder of the industry trade association “Safe and Secure Internet Gambling Association” – decided to take him at his word.  Issa’s quest, after all, is identical to that of the U.S. iGaming industry and casinos vis-à-vis online poker.

Mr. Waxman submitted a lucidly argued letter to Congressman Issa, arguing that the crude prohibitionism of the Unlawful Internet Gambling Enforcement Act has done nothing to prevent internet gambling, with Americans now wagering around $100 billion online every year.  Thanks to measures like the UIGEA, however, they do so without any guaranteed mechanisms in place to shield them from identity thefy, fraud and even, on occasions, their own weaknesses.

Moderate and sane, the letter argues that government regulation of the online industry would deliver consumer protections, yield abundant tax revenues and create desperately needed jobs.  Commenting on his letter, Mr. Waxman announced that organizations such as Safe and Secure Internet Gambling “need to continuously stay in front of Congress” to ensure that the supporters of online gambling regulation – which of course includes online poker – have their voices heard.  There is an “opportunity to get this done,” Mr. Waxman said, and he clearly intends to assist Congress to move in the right direction.

The significance of Waxman’s public letter lies in the fact that Congressman Issa is Chairman of the House Oversight and Government reform Committee.  A previous avenue for prospective reform – the Financial Services Committee – has turned into a dead-end with the appointment of Alabama Republican Spencer Bachus to the Chair after the mid-term elections.  Once upon a time, when Barney Frank was at the helm, the committee was a key focus for online poker lobbying.  Bachus, however, is a hardline opponent of internet gambling and appears closed to persuasion.

Waxman believes that, whilst the House Oversight and Government Reform Committee cannot initiate legislative reform in itself, it could expand awareness of the issues amongst congressional lawmakers by holding hearings and exploring the reasons why UIGEA is so burdensome.  Congressman Issa is “in a great position” to champion the cause, even if his committee has no jurisdiction to introduce legislation.

Safe and Secure Internet Gambling has chosen to concentrate on pushing for legislative reform at the federal level, although Waxman insists that he is not opposed to state-level initiatives.  He regards movement on the state level as a “very positive sign” – the recent regulation of online poker in New Jersey and the likelihood of other states following suit will, he believes, show federal legislators that internet gambling can be and should be effectively regulated.  Every time a state opens up an online market, it not only bestows extra freedom on its citizens but boosts job creation and economic development, too.

The growth of online poker regulation on a state by state basis resembles the early days of the lottery; states could eventually allow their players to combine, just as the lottery did with the Powerball Lottery.  However, the Wire Act could jeopardize this – states will almost certainly need to challenge the Act in court or in Congress before such combinations can proceed.

Despite the Republican gains in the mid-terms, Waxman remains optimistic about the prospects for reform.  And he has a staunch ally in Senate Majority Leader Harry Reid – a stalwart friend of the online poker community – who continues to express great interest in the issue.