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Internet gambling ban architect frustrated with regulation delays

WASHINGTON -- The chief architect of the Internet gambling ban on Tuesday said he is losing patience with the Federal Reserve and the Department of Treasury as they struggle to craft regulations to enforce the ban.

Sen. Jon Kyl, R-Ariz., said the regulations are a year overdue, according to the 2006 prohibition statute.


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  • "The longer it goes the less certainty there is," said Kyl, who was the first lawmaker to launch an effort to ban Internet gambling in 1996.

    "I mean, the people who are violating the law need to know that they're not going to be able the get away with it, and I think that the failure to get these regulations promulgated on time has perhaps given some hope, and it's given life even to an idea over in the House of Representatives to put a moratorium on the regulations," Kyl said.

    Kyl was referring to a bill introduced April 11 by Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, and Rep. Ron Paul, R-Texas.

    The Frank-Paul bill would block the Federal Reserve and Treasury Department from completing regulations to enforce the ban.

    The legislation followed a financial services subcommittee hearing April 2 in which Federal Reserve and Treasury Department officials said the regulations are difficult to complete, partly because the 2006 ban does not define unlawful Internet gambling.

    Louise Roseman, director of bank operations and payment systems for the Federal Reserve, also testified that the prohibition of Internet gambling cannot be "ironclad."

    Another bill, which Frank introduced last year, would repeal the Internet gambling ban and require the Treasury Department to regulate Internet gambling in the United States.

    Despite his frustration with the Federal Reserve and the Treasury Department, Kyl said he is not worried about efforts to block the regulations and roll back the online wagering ban.

    "I would be concerned if something like that were to be adopted by the House ... I'm not sure that the momentum is there to actually get it done," Kyl said.

    Jay Lakin, vice president of Poker Source Online and an opponent of the Internet gambling ban, said he reluctantly agrees.

    "While many efforts have been made on behalf of overturning (the ban), so far it's just been bills and words on paper," Lakin said. "Nothing has moved forward. Until there's a change in Washington, I don't think we'll see much of a change."

    Contact Washington Bureau reporter Tony Batt at tbatt@stephensmedia.com or 202-783-1760.

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    trentk269 wrote on May 02, 2008 08:02 AM: Kyl snuck this law through as a rider to a more important measure and the Republicans were voted out of office soon thereafter. Internet players were outraged, and the government has all but stated the obvious: this is a dumb, unpopular law and is largely unenforceable.


    Barrin6 wrote on May 01, 2008 11:00 AM: I think the anti-gambling bill should be passed, since I need the government to save me. Otherwise I'll be one poor dude. I think it's the gov't responsibility's to babysit and save us. I say, keep the bill, and while you're at it, install cameras in every home to ensure that everyone is safe.

    Barrin6


    fluffy wrote on May 01, 2008 10:35 AM: Congress has no legitimate or moral reason to have their hands involved in the internet. They really have no legitimate reason to do 99% of what we're ALLOWING them to do either. Out with the bums! From BOTH sides of the "aisle"!


    Grasshopp3r wrote on May 01, 2008 09:26 AM: Kyl and Focus on the Family's ultimate agenda is a total prohibition on all gaming, including skill games such as poker.

    Kyl will not be the first target of the PPA. Bill Frist and the Kentucky governor's race were just the beginning.


    Paul wrote on May 01, 2008 08:32 AM: The Treasury and DOJ should've been spending their time investigating Wall Street and the sub prime mess instead of trying to stop people from playing poker in their homes.

    I mean, doesn't that just make sense does it? Why does this administration desire so much to govern from the pulpit? Stop tyring to "save" me.


    Kevin Carroll wrote on April 30, 2008 11:55 PM: Oh yes . . the "Honorable Jon Kyl" who sneaks in bills in the dead of night. Shoulda spent more time writing this ridiculous, unitelligible, unenforcible, onerous and invasive law before shoving it down the throat of an unwilling populous and incapable industry.

    You know, I think maybe the problem is that it just taking awhile to train the Gestapo!


    OldBookGuy wrote on April 30, 2008 09:02 PM: Incredible what has become of the GOP, the once Grand Ole Party who stood up for freedom and individual rights and responsibility?

    And this is the party that stood-up to the communist threat in Eastern Europe, stood by Poland and helped free them and the rest of their neighbors.

    Guess what, Poland, yes Poland is legalizing and regulating Internet Poker.

    Odd how now a country WE helped free from the dictatorship of communism is going to have MORE freedom on the Internet than we, the LAND of the FREE!

    Oh, and yes, even Russia regulates online poker. WOW!

    What has happened to America?


    Glenn Fine wrote on April 30, 2008 08:33 PM: It's vital that Congress License, regulate and tax the on-line gaming industry and allow Ammerican companies to compete in this new industry. To think, I'd have to move to a foriegn country, like England, to start a business. I always thought America was a free country until men like Kyl and Bill Frist hyjacked my freedom. Finally, as an on-line casino player, I only want to play on sites that are regulated, to insure any losses don't fall into the hands of terrorists, or other questionable groups. Regulation and taxation of on-line casinos is the only logical way to proceed, for the safety of the American people.


    TheEngineer wrote on April 30, 2008 06:26 PM: A lot of real Goldwater/Reagan conservatives will vote for Dr. Paul in the primary and for Bob Barr in the general if he wins the Libertarian nomination.

    The GOP is the party of big government social conservatism. Rather than promoting freedom from government imposition of their values on us, they have decided to use government to impose their values on us, while greatly expanding the size and scope of the federal government!

    It's so bad that they our nation's banks combing through federal and state laws to determine what online gaming is legal and what online gaming is not! You see, the formerly small government GOP has deputized banks to enforce laws relating to YOU playing poker on the Internet in your OWN HOME!

    Banks are bitterly complaining, yet "conservative" congressmen insist that this is a proper exercise of the federal government!

    You can stand up for freedom at www.pokerplayersalliance.org/letter . Check it out. You can send a letter to Congress in only 60 seconds. Check out www.politico.com/news/stories/0408/9746.html and http://ap.google.com/article/ALeqM5gSosJ3yBl86H6_d8cUo1a3tZgCgAD8VPUJR00 for info.

    The big government CINOs are out of touch. I imagine a few years in the political wilderness will straighten them out.

    ----------------

    www.myspace.com/theengineer2008


    Muah!!! wrote on April 30, 2008 01:14 PM: Hey, Kyl ya boob, we play all day long! Thanks, ALL my winnings are TAX-FREE, baby!!!


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