Internet Gambling Regulation and Enforcement Act of 2007

Rep. Barney Frank (D-MA) introduced H.R. 2046, the Internet Gambling Regulation and Enforcement Act of 2007 (GREA 07), which would create an exemption to the 2006 act for properly licensed operators. The GREA 07 would potentially allow Americans to bet online legally.

The move recognizes the realities of internet gambling and seeks to gain some measure of control and create safeguards and standards, rather than the previous puritanical approach (and also rather "head-in-the-sand" view of U.S. online gambling behavior). This new attempt at regulation and enforcement is a far more realistic approach. With the wide availability of casino gambling (as in Las Vegas), riverboat gambling, state run lottos, track betting and off-track betting, the 2006 act seemed extremely disingenuous.

The GREA 07 would establish a framework to license companies to accept wagers online from individuals in the United States. The licenses would include protections for underage gambling, compulsive gambling, money laundering and fraud. In addition to consumer safety and financial integrity protections, the GREA 07 would also provide mechanisms to ensure all appropriate taxes and fees are collected from individuals and licenses (possibly the most interesting piece of this legistlation and which requires its own analysis). Online wagering companies would be bound by regulations in individual states, Indian tribes and sport leagues. Licensing would be handled by the U.S. Treasury through its anti-money laundering agency, the Financial Crimes Enforcement Network (FinCEN).

The 2006, the Unlawful Internet Gambling Enforcement Act was passed by the House. The 2006 act restricted the handling of payments by U.S. financial institutions for unlawful forms of Internet gambling (under U.S. federal or state law). Frank is quoted on the 2006 act in the House Financial Services Committee article, "The existing legislation is an inappropriate interference on the personal freedom of Americans and this intereference should be undone."

As mentioned, there is legalized gambling throughout the United States. The new legislation seeks to provide meaningful consumer protections for those choosing to gamble online and would institute practical and enforceable standards to Internet gambling. The Financial Services Committee has planned to hold a hearing entitled, "Can Internet gambling be regulated to protect consumers and the payments system?" at a TBD date in June of this year.