05-Jul-2009
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Recent Developments Favor Regulated Internet Gaming - in the U.S. |
Recent Developments Favor Regulated Internet Gaming - in the U.S.
VANCOUVER, British Columbia, Dec. 2, 2002 -- The licensing and regulation of Internet casinos, in the United States, is an issue that’s never been more ripe for discussion, thanks to developments in the last two weeks, according to the Interactive Gaming Council.
“The IGC has long argued that rigorous regulation is the sensible solution for understanding the Internet gaming phenomenon and protecting citizens, especially underage and problem gamblers,” said Rick Smith, executive director. “We are encouraged that what’s happened recently in both the legislative and judicial arenas will lead U.S. policy makers to a thorough, intelligent examination of this form of gaming.”
Last week (Monday, Nov. 25), the Casino Control Commission of the U.S. Virgin Islands adopted regulations for the conduct of Internet gaming. The commission acted after an opinion by the territory’s attorney general, who stated that online gaming is legal in the U.S. Virgin Islands as long as operators can be certain that players are of lawful age and that they are placing bets only from jurisdictions where such gaming is not illegal. To read the regulations in full click here.
“A comprehensive regulatory infrastructure and compliance with the licensing jurisdiction -- similar to the regulatory philosophies that apply to leading land-based gambling jurisdictions -- is a movement in the right direction,” Smith said. “With new technologies, there is a need for governments to review how they regulate (not what they regulate), even more so as geographical borders ‘disappear’ in the medium of e-commerce.”
When the Virgin Islands first legalized Internet gaming in 2001, it became the second U.S. jurisdiction to do so. Nevada has passed enabling legislation, but implementation stalled after state officials received a letter from the Department of Justice that said online casino gaming violates federal laws.
That opinion, however, preceded a key decision by the U.S. Court of Appeals for the Fifth Circuit, which on Nov. 20 upheld a lower court ruling that said federal law forbids sports betting on the Internet, but does not prohibit casino gaming.
“The Virgin Islands now appears to have a green light to proceed,” said Keith Furlong, deputy director of the IGC. “That government is creating a credible Internet gaming jurisdiction where players are protected and only responsible companies can be licensed to operate casino Web sites.”
The legislation and regulations in the U.S. Virgin Islands provide for the establishment of two Master Service Providers, which are the only entities authorized to host the physical operations of approved Internet gaming sites. The two Master Service Providers as referenced in the legislation are the St. Croix Internet Group LLC and U.S.V.I. Technologies Initiative LLP.
Frank Catania, former Assistant Attorney General and Director of the New Jersey Division of Gaming Enforcement and former Chair of the International Association of Gaming Regulators, said, “Under the leadership of Judge Eileen Petersen, Chair of the Casino Control Commission, the U.S. Virgin Islands has adopted tough rules that should ensure fair and responsible online gaming in that jurisdiction.”
While there are bills expected to be re-introduced in the U.S. Congress that would outlaw Internet gaming, officials of the Virgin Islands believe that the territory can now begin to host such gaming and then be “grandfathered in” if federal law changes.
Meanwhile, on Nov. 19, the first federal bill to regulate Internet gaming in the U.S. was introduced by Rep. John Conyers Jr., D-Mich. In support of his bill, which may be re-introduced in the next Congress, Conyers states: “The international nature of the Internet has rendered ineffective federal and state statutes governing the placement of wagers. This bill creates a commission to assure that the same sorts of consumer protections imposed on land-based gaming will apply to a licensed and regulated Internet-based gaming industry.”
The IGC’s Smith said, “While many challenges lie ahead, the IGC commends Rep. Conyers for his understanding of Internet gaming, and his appreciation for a licensing and regulatory approach toward consumer protection for online gaming, and e-commerce in general.”
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