New Federal Bill Seeks to Regulate U.S. Online Gambling

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Saturday, June 8th, 2013 | Written by Lucy Brown

New York Representative Peter King introduced a long-anticipated federal bill to regulate online gambling this week.

The bill, entitled The Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013, would permit every type of online gambling except for sports betting. That means poker, casino, lottery and bingo – along with whatever additional new products casinos could generate – would be fair game.

King’s bill automatically opts-in all states. States must notify the federal government within 120 days if they wish to opt-out of the scheme.

The bill also clarifies much of existing U.S. law relating to online gambling.

Bill modeled on legislation from 2011

The Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013 is modeled on a similar bill from 2011 sponsored by Representative John Campbell.

That bill perished in committee. King’s bill does provide a good deal more detail and specifics than Campbell’s effort, and 2013 is quite a bit away from 2011 in political terms. But can King’s bill realistically be considered to have a chance of becoming law?

Chances the bill will pass slim

The early word from analysts and the poker media is that the King bill has a very, very slim chance of actually passing. Those who hold this view cite a variety of factors to support their prediction: opposition from anti-gambling groups, lack of support in the House and lack of clear support from tribal gambling and commercial casino stakeholders.

The fact that Campbell’s bill failed to advance in 2011 – and that a far more limited effort to regulate online online poker came up short in 2012 – also suggests something of a bleak future for King’s attempt to bring federally-regulated online gambling to the United States.

PPA offers praise for new bill

One group that found a lot to like in the King bill is the Poker Player’s Alliance. Given that the lobbying group contributed to the construction of the bill, it should come as little surprise that they’d cheer the final product.

But PPA head John Pappas also spoke directly to opponents of gambling in the PPA’s official statement on the King’s introduction: “As more states lead, it will be difficult for Congress to follow – and even more difficult to see the necessity of federal legislation. We hope that all of Congress can work together and support this bill.”

Reid not so certain bill is a good thing for online poker

Senate Majority Leader Harry Reid – a proponent of online gambling – had harsh words for King’s bill in an interview with the Las Vegas Sun. Reid told the Sun that he doubted the bill would pass, and went on to say that he felt the King bill – which authorizes nearly all forms of online gambling – would further harm the chances for a poker-only bill like the one Reid attempted to push through in the lame duck session.

While Reid’s words alone certainly aren’t a death knell for the bill, the fact that such a high-profile supporter of gambling would be so quick to criticize the bill doesn’t inspire much hope or confidence in the bill’s prospects.

King’s bill comes on the heels of a number of failed attempts to regulated online gambling at the state level, including the two most recent efforts in Illinois and Massachusetts.