I wrote a new letter for this matter. Here's the House version. Please let me know what you think:
I am writing as a constituent, voter, and poker player to ask for your support. Specifically, I ask that you support legislation to repeal or amend the badly flawed Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).
As a proud poker player, I was outraged when online horse racing wagering was exempted from the provisions of UIGEA while games of skill like poker were not. I know many in Congress do not concur with this differential treatment, and I imagine they will continue to attack it. In fact, the Subcommittee on Commerce, Trade and Consumer Protection is holding a hearing on various aspects of the nation’s horse racing industry on June 19th, and discussion of horseracing’s UIGEA carve-out is on the agenda.
I have no dislike for the horse industry. I simply expect to be treated equally and fairly. Now that it is clear that UIGEA is so badly flawed that even the horse racing exemption will fail to effectively protect the industry from the effects of UIGEA, I believe the opportunity to provide this fundamental fairness is here.
UIGEA requires blocking of unlawful Internet gaming by financial institutions. However, neither UIGEA nor its regulations (as currently drafted) define unlawful Internet gaming. As a result, banks have been deputized to not only enforce this law, but also to define its scope. Unfortunately, the law penalizes banks severely if they err on the side of processing transactions later determined to be unlawful, but permits them to block legal transactions. As a result, banks can be expected to err strongly on the side of caution.
Based on the UIGEA regulation comments banks and pari-mutuels made to the Treasury Department and to the Federal Reserve, and on recent media reports, it seems likely that many financial institutions will block online horseracing wagers for a variety of reasons. One reason is that many banks and credit card companies will simply block all online gaming transactions to ensure compliance with UIGEA. Another reason is that the UIGEA “carve out” verbiage appears to require horseracing transactions to fully comply with IHA to be exempt from UIGEA – a determination financial institutions are probably neither equipped nor inclined to make. And, probably the biggest reason for overblocking is the Justice Department’s position that all online interstate horse race wagering violates the Wire Act (particularly as the DoJ has shown no reluctance in arresting suspected Wire Act violators). The Justice Department’s position on the legality of horse race wagering could also significantly hinder the ability of financial institutions to develop processes to permit online horse race wagers.
To help to rectify these problems, I ask that you support H.R. 5767 – recently introduced legislation that places a moratorium on the enactment of the badly flawed UIGEA regulations. I also encourage you to support HR 2610, the Skill Game Protection Act, and HR 2046, the Internet Gambling Regulation and Enforcement Act. Both bills address the issue of determination of lawful vs. unlawful gaming, and both bills amend the Wire Act to clarify its scope. These bills also have rigorous safeguards against underage and compulsive gambling.
Thank you for your consideration.
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Here's the Senate version:
I am writing as a constituent, voter, and poker player to ask for your support. Specifically, I ask that you introduce Senate legislation to repeal or amend the badly flawed Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).
As a proud poker player, I was outraged when online horse racing wagering was exempted from the provisions of UIGEA while games of skill like poker were not. I know many in Congress do not concur with this differential treatment, and I imagine they will continue to attack it. In fact, the Subcommittee on Commerce, Trade and Consumer Protection is holding a hearing on various aspects of the nation’s horse racing industry on June 19th, and discussion of horseracing’s UIGEA carve-out is on the agenda.
I have no dislike for the horse industry. I simply expect to be treated equally and fairly. Now that it is clear that UIGEA is so badly flawed that even the horse racing exemption will fail to effectively protect the industry from the effects of UIGEA, I believe the opportunity to provide this fundamental fairness is here.
UIGEA requires blocking of unlawful Internet gaming by financial institutions. However, neither UIGEA nor its regulations (as currently drafted) define unlawful Internet gaming. As a result, banks have been deputized to not only enforce this law, but also to define its scope. Unfortunately, the law penalizes banks severely if they err on the side of processing transactions later determined to be unlawful, but permits them to block legal transactions. As a result, banks can be expected to err strongly on the side of caution.
Based on the UIGEA regulation comments banks and pari-mutuels made to the Treasury Department and to the Federal Reserve, and on recent media reports, it seems likely that many financial institutions will block online horseracing wagers for a variety of reasons. One reason is that many banks and credit card companies will simply block all online gaming transactions to ensure compliance with UIGEA. Another reason is that the UIGEA “carve out” verbiage appears to require horseracing transactions to fully comply with IHA to be exempt from UIGEA – a determination financial institutions are probably neither equipped nor inclined to make. And, probably the biggest reason for overblocking is the Justice Department’s position that all online interstate horse race wagering violates the Wire Act (particularly as the DoJ has shown no reluctance in arresting suspected Wire Act violators). The Justice Department’s position on the legality of horse race wagering could also significantly hinder the ability of financial institutions to develop processes to permit online horse race wagers.
To help to rectify these problems, I ask that you sponsor H.R. 5767 – recently introduced House legislation that places a moratorium on the enactment of the badly flawed UIGEA regulations – in the Senate. I also encourage you to sponsor HR 2610, the Skill Game Protection Act, and HR 2046, the Internet Gambling Regulation and Enforcement Act in the Senate. Both bills address the issue of determination of lawful vs. unlawful gaming, and both bills amend the Wire Act to clarify its scope. These bills also have rigorous safeguards against underage and compulsive gambling.
Thank you for your consideration.