is barney frank jeopardizing his own online gambling bill?

[Kurn, son of Mogh]

Once my livelihood isn't threatened by knucklehead politicians

Exactly HOW does the UIGEA threaten your livelihood? All it does is make it harder to deposit, and if truth be told, 85% of US-issued credit cards wouldn't allow deposits in gambling sites long before the UIGEA.

The DOJ is nowhere near meeting the 270-day deadline, the banking industry is fighting compliance (the same way they fought and killed Know-Your-Customer), and nothing in the bill criminalizes playing nor prevents you from getting your money out.

If you're talking about not having enough casual/weak players, read my post about taxation and understand that legalizing and regulating online gambling will chase more fish away than the UIGEA possibly could.

Now couple the Frank bill with a rider that reforms the tax code with respect to gambling income and you've got a point, but something tells me Barney Frank would run from that like a scared rabbit.

[CountingMyOuts]

I have a small blog and made a post recently about this situation. A responder left this comment:

This is incorrect. There is no correlation between the Internet Gambling Regulation and Enforcement Act, which would regulate Internet gambling, and the National Affordable Housing Trust Fund Act, which would raise money for an affordable housing trust fund.

The following is a link to the House Committee on Financial Service’s website: http://financialservices.house.gov. Here you will find information on a hearing to discuss the National Affordable Housing Trust Fund Act, which is scheduled for July 12th. As shown, there is no reference or connection between this bill and efforts to tax and regulate Internet gambling.

The reality is that there is growing support in congress for the Internet Gambling Regulation and Enforcement Act and the framework proposed by Congressman Frank to regulate Internet gambling.

To voice your support for regulated Internet gambling and the Internet Gambling Regulation and Enforcement Act, please visit www.safeandsecureig.org.

This sure doesn't jive with what we have been hearing, does it? Thoughts?

[Berge20]

Yeh, I'm not sure where the idea that his housing fund bill would be merged with his IG bill?!?

<---confused

[Legislurker]

Could it possibly be the solid, well-sourced, and conservative
people at gambling911.com posted a story hastily with a scary title before they got all their facts? No way.

[TheEngineer]

[ QUOTE ]
That is my point, the revenue is the whole and only reason leadership was OK with the bill, although they were unhappy he hadn't talked to them first. Then he put this on it, and spent a big chunk of the intial revunue. They want to use if for the AMT, now they think it is just going to get loaded with pork, and they won't actually get much out of it. Leadership is certainly not onboard with the housing bill. That is why he took what was an independent bill, and combined it. They had said, no way, not a priority, and no money. So he stuck it on. That's why they're so mad, they had said defintely not this year, and he's trying to go around, I predict it will be killed out of spite if he doesn't pull the housing.

[/ QUOTE ]

Are you speculating based on the article, or do you know this from your work?

[TheEngineer]

[ QUOTE ]
Exactly HOW does the UIGEA threaten your livelihood?

[/ QUOTE ]

The games aren't nearly as fishy as they once were, especially $10/$20 - $20/$40 limit hold 'em. The fish that remain won't stay forever, and the "pond" isn't getting replenished very rapidly.

[ QUOTE ]
If you're talking about not having enough casual/weak players, read my post about taxation and understand that legalizing and regulating online gambling will chase more fish away than the UIGEA possibly could.

[/ QUOTE ]

Speculation. On the other hand, there is a strong likelihood that a bunch of commericials will really draw in the fish. There is every possibility that regulated online poker will have reasonable tax reporting requirements (more like B&M casinos), especially once Harrah's and MGM get done lobbying for changes. Also, fish from other nations will be drawn to the safety of a game under U.S. auspices. Finally, the tax laws are what they are. We should work on those, rather than expecting the fish to evade their taxes out of ignorance.

Our main problem is that our opponents aren't done yet. I think we can all agree that the U.S. government won't sit idly by while offshore companies offer poker and U.S. companies don't, especially when the offshore companies don't pay U.S. taxes. They'll either ban all gambling, including poker, or allow U.S. companies access to the market.

The past plan of doing nothing and hoping for the best didn't work for us, and I don't think it's a good approach now. I think we need to stay on offense. If nothing else, it's proven to be a great defense for us so far.

[TheEngineer]

[ QUOTE ]
This is incorrect. There is no correlation between the Internet Gambling Regulation and Enforcement Act, which would regulate Internet gambling, and the National Affordable Housing Trust Fund Act, which would raise money for an affordable housing trust fund.

[/ QUOTE ]

I've read both bills, looked for upcoming changes, and Googled several variants of search parameters.....no dice. Nothing at all except this g911 article. I personally won't worry about this until I see some corroboration.

[Jerry D]

[ QUOTE ]
No. If you want online poker legalized, support the PPA. If you want to help provide housing for the less fortunate, give money to Habitat for Humanity. They do better work than any govt agency and they don't take one penny of tax money.

The two issues are completely unrelated.

[/ QUOTE ]

No, the govt. does a much better job with low income housing than the few houses that habitat for humanity puts up.

[Jerry D]

[ QUOTE ]
Lesson #1: Don't trust politicians.

Downside of UIGEA - harder to get money into your account, fewer US fish(i don't think this is as significant as some think, but that's a discussion for another day)

Upside of UIGEA (yes, there is one): Politicians may think they've accomplished their goal, pat themselves on the back, and move on to screwing us other ways.

Upside of the Frank bill: Easier access to accounts, more US fish.

Downide of Frank bill. Direct IRS access to your accounts.

IMO, that last point is the worst aspect of this entire discussion.

[/ QUOTE ]

Quit cheating on your taxes.

[TheEngineer]

Good news. I was able to confirm with someone who knows someone on Frank's staff that this is story is completely false. HR 2046 is free-standing...the story is nothing but bad reporting (using that term loosely in this case).