So there is a new bill up for approval sponsored by Barney Frank and Jim McDermott. It is advertised as the reversal of the UIGEA that passed in the dead of night a couple of years ago and removed neteller from our lives and made it harder to move money.
Here are the specifics:
1. It is currently LEGAL at the federal level to bet on sports. This legislation does NOTHING to address the legality of wagering for the bet placer. It is still ILLEGAL to accept wagers. This wont change.
2. The new legislation excludes any business that handles sports betting. So this does nothing to open up sportsbooks moving money easier.
3. The new legislation will license gambling establishments. These will include establishments that offer online BJ, craps, and poker etc. - NOT SPORTSBETTING.
4. Any company that gets this license will pay a 2% tax on all deposits.
5. Any company that gets a license will be required to provide to the IRS a summary of all wins and losses by player.
6. There is language about protecting the addicted gambler, children etc - useless.
7. The UIGEA is delayed from being enforced on Dec 1 09 to Dec 1 10 (this is useless because it is essentially unenforceable more than what they do now).
So in a nutshell - the govt has realized that they are missing out on a big revenue stream - both from taxing the gaming business but also the player. This is a plan to get both. This is not a plan to overturn the UIGEA.
This is also not a plan to accept sporst betting as a form of government sponsored gambling. The govt thinks poker and table games are fine, but not sports betting. I guess the poker lobby is much stronger than the anti sports gambling lobby (the NFL, NBA etc).
So thats really it. In the end, even if this passes, I am not convinced a company like pokerstars would even participate. Yes, it would be much easier for them to receive deposits - but it would cost them 2% on all deposits, the cost of the license itself, and a presumed loss of customers who will be very pissed that the govt will be getting a log of their wins and losses. I guess this will come down to a business decision for companies like PS.
The big winner here is land based US casinos like Harrahs who are struggling now, but are foaming at the mouth to be a govt sponsored online gambling company - which they will be with very little effort.
For the player, if you play a lot of poker, and dont mind the govt knowing your wins and losses - there will be very easy ways to deposit and receive money from a harrahs or similar. Im sure they will accept CC's, and online banking transactions - and in that respect this will help a lot of people win at a online poker table and collect their money 5 minutes later.
Unfortunately, it will do nothing for the guy who wants to bet on a football game in 5 minutes but has not money offshore.