mike1
1758
2013/04/24 11:35
#304240
Manne wrote:
A proposed bill extending Pennsylvania’s regulatory reach into online gambling has been introduced by Pennsylvania State Representative Tina Davis (D-Bucks County).
The measure, titled House Bill 1235, was immediately referred to Pennsylvania’s Gaming Oversight Committee, on which Davis serves. The measure had gone through several draft phases dating from its original creation in 2012, with Davis announcing in January her plans to introduce a bill this session.
Major recent additions to HB 1235 deal with internet gaming and its possible licensure by the commonwealth. Speculation that the bill would include a “bad actor” clause was unfounded, though the licensing structure proposed within the bill would favor Pennsylvania’s existing land-based casinos.
According to the language presently within HB 1235, internet gaming licenses could be applied for by those entities who already hold an existing slot-machine license, which defines the approved gambling venues within the state.
Both the entities licensed to offer online gaming and the players themselves must maintain a physical presence within Pennsylvania, with players initially required to register in-person at a licensed gaming venue. A minimum internet gambling age of 21 is also declared within the measure.
Online poker and other non-house-banked games are specifically included in the measure, along with dozens of traditional table games, including poker-themed, house-banked variations offered in many live venues. All would be regulated in online versions should this measure become law, with approval and testing required for each.
Pennsylvania would receive 28% of the gross revenues generated from online gambling, with online poker revenue defined to come from the rake and tournament fees, not players’ winnings.
Another revision in the full version of HB 1235 is the lowering of the proposed initial application/licensing fee from $16.7 million to $5 million, with a $500,000 renewal fee due every three years.
Davis’ Bucks County 114th District borders on New Jersey and is a battleground over gambling revenues between Pennsylvania and nearby New Jersey and Delaware, both of which have already authorized some forms of online gambling.
Eleven other Pennsylvania legislators have already signed on as co-sponsors of the bill: Thomas Caltagirone, Rosita Youngblood, Dom Costa, William Kortz, Vanessa Lowery Brown, RoseMarie Swanger, Mark Cohen, Ed Neilson, George Dunbar, John Galloway and John Sabatina.
Pennsylvania Legislators Release Text of Proposed Online Gambling Measure | Pokerfuse Online Poker News
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Kennedy says New York State is currently unable regulate the companies that are licensed in New Jersey, yet these sites will have easy access to New York customers through illegal middle-men who can set up "virtual private networks" to host "online casinos" in New York State. The technology is very simple and could easily be manipulated to prey on those with gambling addiction across the country – often charging over-the-top fees.
"There are some websites that have lured customers into using their online casino platform. They have built a customer base, but very few people are aware of the egregious actions they have taken over the years," said Senator Tim Kennedy . "These sites are stacking the deck and consumers are losing – and losing big. We need to prevent these bad actors from getting a license to behave this way anywhere in the country and especially prevent them from targeting minors and those suffering from a gambling addiction."
Current state law offers no enforcement mechanism to deter illegal sites from entering the New York market and little recourse for individuals who are harmed by gambling on these often-predatory sites. Enforcing regulations against illegal online gambling was typically the role of the FBI, but in 2011 the U.S. Department of Justice reversed its long-held opposition to many forms of internet gambling, leaving the decision and much of the regulatory power up to the states.
Now that states are legalizing or looking to legalize online gaming across the country, New York will have to come up with ways to protect consumers from the many bad actors out there. Kennedy says the New York State Gaming Commission should investigate the proliferation of illegal or predatory sites as online gambling becomes legal in neighboring states. He also points out that every dollar spent on gambling online illegally is lost revenue for casinos in Buffalo and Niagara Falls, which employ thousands of Western New Yorkers.
In 2011, the three largest poker sites operating in country -- PokerStars, Full Tilt Poker and Absolute Poker -- were charged with bank fraud, illegal gambling offenses and money laundering. These sites took part in an elaborate criminal fraud scheme, involving misleading some U.S. banks and bribing others to assure the continued flow of billions in illegal gambling profits. The charges were conspiracy to violate Unlawful Internet Gambling Enforcement Act (UIGEA), violation of UIGEA, operation of illegal gambling business, conspiracy to commit bank fraud and wire fraud, and money laundering conspiracy.
Another large player in the online gaming industry is 888-com, which has been operating from off-shore locations for years, has a history of taking illegal bets and offering no protection for minors and other individuals who would be harmed by online gambling. Some of these sites could be pushing for licensing in states like New Jersey, who are now offering legalized online gaming.
Senator Timothy M. Kennedy represents the New York State Senate's 63rd District, which is comprised of the town of Cheektowaga, Eden, Hamburg and West Seneca, the city of Lackawanna and parts of the city of Buffalo. More information is available at kennedy.nysenate.gov.
With States Rapidly Legalizing Online-Gaming, Senator Kennedy Calls on the New York... -- BUFFALO, NY, April 20, 2013 /PRNewswire/ --