Draft letter I plan to fax to my congressman soon

[fnord_too]

Thoughts?

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Representative Scott,

Let me start by saying I am very happy with your record and representation over your seven terms of service and do not expect your eighth to change that sentiment. Following is a pet issue of mine I hope you have time to address.


I am concerned about all the recent attacks on rights and liberties, but the one I want to address today is on-line gambling, and specifically on-line poker. There has been much pandering on this issue, with some ineffective legislation forced through congress in the 11th hour of the previous session by Senator Frist. It is disturbing that the first response some have to an obviously desired service is to attempt prohibition, save for glaring carve outs made purely from self interest while using hypocritical arguments for the ban.

At any rate, I fully support a congressional research effort into how to regulate and tax the industry, and offer some thoughts on what I see as the two major issues surrounding the situation, along with opinions on these issues.

Jurisdiction – The largest one of these is State versus Federal. The issue of who has legislative authority over internet commerce is particularly thorny, but needs to be addressed in general. I feel that on-line gambling from the consumer (player) side most definitely falls under the auspices of the federal government. This is especially true since all international treaties fall under the federal government, and on-line gambling at foreign sites falls under international trade agreements. In fact, there is a current WTO ruling against the US on the issue of on-line gambling. Since where transactions actually take place in internet commerce is a point of debate, there really is no tenable solution other than the federal government assuming legislative control. Certainly, the WTO views the US as one entity, not myriad.

Regulation – This goes hand in hand with jurisdiction, but has enough unique features to rate its own category. The rules governing the industry need to be defined, and this is no small task. I would submit that all on-line gaming companies seeking US clients are subject to at least the following:
<ul type="square">[*]A US office, ensuring that, as their activities pertain to US citizens, they are bound by US laws and the US Judicial system[*]Full reporting of financial activity of US citizens as appropriate (such as sending tax documents to the player and IRS when required by law)[*]Strict enforcement of age requirements[*]Full cooperation with US law enforcement when pursuing criminal investigations (such as theft via breaching computer security)[*]Strict enforcement of gaming regulations (such as gaming license fees, random number generation, house fees, etc.)[*]Strict consumer protection requirements (from threats like automated computer programs playing in lieu of a human)[*]Strict identity enforcement, both at the first time the site is signed up for and when logging onto the site. (There are several good mechanisms that can be used for either of these)[/list]I think it is a travesty that we are not trying to regulate and tax this industry, but instead are creating confusing, dubiously worded laws to try to scare people from playing. The legality of on-line poker is not at all clear, and probably won’t be until Congress passes cohesive, well thought out legislation. I do not think this is an issue that the courts can effectively address, because at the heart of it is the question of who governs the internet. This is hard enough to wrestle with solely inside the confines of the US, but when other countries, international commerce, and official treaties are involved the issue takes on tremendous additional complexity. There is certainly sentiment in the current administration not to let the courts legislate; I think this is an issue that definitely requires congressional attention, and not in the form of some ill conceived rider that is forced through congress in a most belligerent manner. I am heartened by the change that the American people have demanded at the polls this past November, and hopefully this new congress can find time for this issue amidst their busy schedule and is up to the task of intelligently dealing with it.

Your dutiful constituent,

My Name

My Address


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