Questions asked about clause in US online gambling legislative proposals

Online gambling executives and industry observers alike are asking whether a specific clause contained in two legislative proposals aimed at legalising Internet poker and gambling in the USA are signalling a protectionist intent on the part of future US regulators.

Online gambling legalisation proposals by Senator Robert Menendez (online poker) and Congressman Barney Frank (online gambling) both contain the potentially discriminatory clause, which allows the US Treasury to reject applicants who have failed to file "...a federal or state tax return…owed to a jurisdiction in which the applicant operates or does business.”

Opinions are split on the implications of the clause; some feel that it is a clear indication that any legalisation in the United States will result in only American operators getting the lcensing green light, whilst others feel that the inclusion is a political ploy designed to appease possible opponents of the proposals. Others still point out that there are a number of ways that companies outside the United States could structure a US presence that would pass muster.

Major non-US operators have different views, too. Gigi Levy, CEO of 888.com is on record as saying that any US legalisation will restrict licenses to American companies. Party Gaming, which recently cleaned its US pre-UIGEA slate with a massive "settlement" payment to the US authorities, appears to think otherwise and has revealed that it intends to continue US lobbying efforts.

Cryptologic 14 top games to be provided to Loto-Quebec - 02/08/2012 : The companies have signed a multi-year agreement that will see Cryptologic providing a portfolio of quality games to the Societe du jeu virtuel du Quebec, the online gaming division of the provincial state lottery corporation Loto-Quebec, known as Espacejeux.

Utah : Online Gambling : HB108 - 02/08/2012 : An intrastate attempt by Utah politician Stephen Sandstrom to introduce state legislation banning any legalisation of internet gambling has failed at the start gate.

MORE U.S. DISCUSSION ON INTERNET GAMBLING DUE THIS WEEK - 02/08/2012 : Interest in online gambling in the United States is set to continue on Thursday this week when the US Senate Committee on Indian Affairs meets to hear the views of a wide cross section of interested parties on the possible impact of legalised internet gambling on tribal gaming.

Judge wont dismiss DoJ Black Friday charges - 02/08/2012 : Former Utah banker John Campos and e-processor Chad Elie, who face charges relating to the payment processing of online poker transactions, suffered a setback Tuesday when a Manhattan judge refused to allow their motion for dismissal of Black Friday indictments against them.

ANOTHER MAJOR INTERNET GAMBLING BUST IN MALAYSIA - 02/08/2012 : Police units in Malaysia raided a series of premises in a week long anti-online gambling operation, seizing 225 computers and detaining 47 men, according to reports from the Bernama news agency. All of the detained men were later released on bail.