New Bid To Legalise Online Poker

New Jersey Democrat to launch new bill Thursday

A new bid to license and regulate online poker will be launched today (Thursday) by New Jersey Democrat, Senator Robert Menendez, a member of the senator's staff told the Dow Jones news service this week.

The proposal seeks to create a regulatory framework allowing online poker companies to register in the U.S. and subject to taxation and stringent regulation that includes consumer protections relating particularly to age verification, fair gaming, the prevention of fraud and money laundering, and problem gambling. There will also be requirements to ensure that the player is logging in from a jurisdiction where gambling is legal.

Taxation provisions of 10 percent on all deposits made by players to gambling sites are envisaged, with the proceeds split evenly between the state and federal governments.

One of the most vocal proponents of lifting the online gambling ban is the banking industry. Banks say the existing rules don't define what types of gambling are illegal, leaving them unsure whether to reject individual transactions. In some parts of the country, for example, betting on horse racing is legal, but in others it isn't, reports Dow Jones.

The difference between the Menendez bill and HR2267 introduced in May this year by Representative Barney Frank is that the former applies only to online poker and other "games of skill," while Frank's legislation aims to regulate other forms of gambling, including sports betting and online casino action.

Both bills have been careful to respect the rights of individual states when it comes to gambling laws autonomy.