Online Bingo Blog

Online Bingo in America seems to have found a friend in Democrat Representative, Barney Frank.  As of now, there is a ban in the US on Internet Bingo. However, if Frank has his way it may soon be legal to run online Bingo operations in the US. Which in turn would mean online Bingo players in America too can breathe easy and be assured of secure and trustworthy services while they enjoy Bingo from the comfort of their homes.

The Internet Gambling Regulation Consumer Protection & Enforcement Act introduced by Frank to the Congress seeks to stymie the Unlawful Internet Gambling Enforcement Act (UIGEA) passed of 2006. The UIGEA had banned banks and other financial institutions from making transactions linked to online gambling. However, the UIGEA has not been enforced effectively, due to lack of clarity on several aspects of the law.

With an eye on ensuring a well-debated national policy on the issue, Frank is also introducing another Bill called Reasonable Prudence in Regulation Act of 2009. This is expected to delay by one full year, the implementation of the UIGEA and its supporting regulations which were to be in place by December 1, 2009.

Meanwhile, Frank’s main Bill seeks to regulate the online gambling industry by introducing licensing. Only those Bingo, Poker or for that matter online casino operators who can prove their credentials in terms of character, honesty, reputation and prior activities will be issued licenses, if this Bill becomes law.

The Bill provides for stringent pre-licensing checks and operators would have to take on the responsibility of combating money laundering, underage gambling as well as comply with both state and federal laws in the US apart from applicable Indian Tribe limitations.

Applications will have to be accompanied by detailed financial records and personal details of directors to facilitate credit and criminal history checks. The licence when granted would be valid for five years and will be renewed based on good conduct and efficiency –failing which, it would be terminated. Violations attract imprisonment of up to five years under the proposed Act.

Of course, if the regulators step in to ensure clean operations, will taxes be far behind? Representative Jim McDermott is bringing in The Internet Gambling Regulation and Tax Enforcement Act of 2009.

Under this, licensed operators have to pay a 2% fee based on turnover. They are also required to collect taxes from winnings before payouts are made –thus ensuring that individual and corporate taxes owed on regulated Internet gambling activities are collected.

Tags: Barney Frank, gambling operators, Jim McDermott, Online Bingo, Reasonable Prudence in Regulation Act, The Internet Gambling Regulation and Tax Enforcement Ac, UIGEA

This entry was posted on Thursday, May 7th, 2009 at 1:10 pm and is filed under Bingo Bylane. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.