In response to the PPA November Newsletter's call for submitting comments to the incoming Obama administration I wrote and submitted the following letter. I thought I would post it here in case anyone else wanted to copy from it.
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Dear President-elect Obama and Transition Team,
I appreciate that as you assume the office of President there are many serious challenges that you will face and many pieces of bad legislation passed by the outgoing administration which will need repeal or modification. I would like to draw your attention to one such piece of legislation which has been wrongfully injected into code as midnight riders on other legislation, the UIGEA.
This legislation is flawed on several points:
The Act lumps Internet Poker in with all other forms of wagering or games of chance. Poker is a game of skill that has an aspect of luck involved in it. A highly skilled poker play can win pots with well timed strategic bets no matter which cards luck has provided.
Prohibiting Internet Poker causes the companies that run Internet Poker sites to either move offshore or allow users to make deposits from offshore third party financial institutions both of which deprive state and federal governments of billions of dollars in potential tax revenue. In these difficult economic times with state and local governments facing large budget deficits, this additional source of revenue can help stave off cuts to essential programs such as health and education.
Additionally, the UIGEA places the onus of enforcement on our financial institutions. These institutions need to be focused on reforming their core practices in order to recover from the current crisis and create stable and trustworthy companies for the future and not to be distracted by policing whether or not their customers are transferring funds to Internet Poker sites.
Lastly, I would suggest that if the intention of this bill was to protect minors from any perceived harm from Internet Poker, the best way to achieve this is licensing and regulation not prohibition. Regulation would have the additional benefit of ensuring a fair and level playing field for the adult players of the game.
Thank you for your attention in this matter,
Sincerely,
-Jesse Clark